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Indiana vs Lebanon for Rental Property Investing

Side-by-side comparison of Indiana, PA and Lebanon, PA — cap rates, rent, prices, and investment metrics.

Indiana wins 3–0 across key metrics
Indiana leads on cash flow (4.08% vs 2.89% cap rate)
Metric
Indiana, PA
Lebanon, PA
Est. Cap Rate
4.08%
2.89%
Median Home Price
$155,000
$305,000
Median Monthly Rent
$860
$1,370
1% Rule
0.55%
0.45%
GRM
15.0x
18.6x
Price / Income
3.2x
6.4x
Property Tax Rate
1.38%
1.38%
Vacancy Rate
6%
6%
Population Growth
0.2% / yr
0.2% / yr
Annual Appreciation
2.3%
2.3%
Population
50,000
50,000
Median Income
$47,800
$47,800

Indiana vs Lebanon: Which Is Better for Investors?

Cash flow: Indiana has the edge with an estimated cap rate of 4.08% compared to Lebanon's 2.89%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $155,000 in Indiana vs $305,000 in Lebanon, while rents come in at $860/mo and $1,370/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Indiana is growing faster at 0.2% annually vs Lebanon's 0.2%. Indiana leads on home value appreciation at 2.3% per year.

Costs & risk: Property taxes are 1.38% in Indiana vs 1.38% in Lebanon. Vacancy rates of 6% and 6% are mixed — Lebanon has the tighter rental market.

Entry point: Indiana offers a lower entry at $155K vs Lebanon's $305K — a difference of $150K. With a 20% down payment, that's $31K vs $61K. Indiana combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Indiana edges out Lebanon on most key metrics. While cap rates are moderate at 4.08%, Indiana's overall profile is stronger. Use our free calculators to model specific deals in Indiana or Lebanon.

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Indiana, PA
4.08% cap rate · $155,000 median · $860/mo
Full analysis →
Lebanon, PA
2.89% cap rate · $305,000 median · $1,370/mo
Full analysis →

Frequently Asked Questions

Is Indiana or Lebanon better for rental investing?
Indiana wins 3–0 across our 7 key metrics (cap rate, 1% rule, GRM, taxes, vacancy, growth, appreciation). Indiana's 4.08% cap rate and $155K median price offer both higher returns and a lower entry point.
What is the cap rate difference between Indiana and Lebanon?
Indiana has a 4.08% cap rate vs Lebanon's 2.89% — a difference of 1.19 percentage points. This is a significant gap that meaningfully impacts cash flow. For context, the national average is 3.81%.
Which city has lower property taxes?
Lebanon has lower property taxes at 1.38% vs 1.38%. On a $230K property, that's a difference of approximately $2,070/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Indiana is growing at 0.2% annually vs Lebanon's 0.2%. Both cities have slow growth — focus on the strongest neighborhoods. Indiana's appreciation rate of 2.3% also leads on home value growth.

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