%
CapRateCity
Free cap rate calculators for every US market
← All comparisons

Indianapolis vs Bloomington for Rental Property Investing

Side-by-side comparison of Indianapolis, IN and Bloomington, IN — cap rates, rent, prices, and investment metrics.

◉
Indianapolis wins 5–2 across key metrics
Indianapolis leads on cash flow (4.49% vs 4.18% cap rate)
Metric
Indianapolis, IN
Bloomington, IN
Est. Cap Rate
4.49%
4.18%
Median Home Price
$235,000
$235,000
Median Monthly Rent
$1,280
$1,200
1% Rule
0.54%
0.51%
GRM
15.3x
16.3x
Price / Income
4.4x
6.1x
Property Tax Rate
0.84%
0.83%
Vacancy Rate
6.2%
5.2%
Population Growth
0.9% / yr
0.8% / yr
Annual Appreciation
2.8%
2.6%
Population
882,039
87,000
Median Income
$52,900
$38,400

Indianapolis vs Bloomington: Which Is Better for Investors?

Cash flow: Indianapolis has the edge with an estimated cap rate of 4.49% compared to Bloomington's 4.18%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $235,000 in Indianapolis vs $235,000 in Bloomington, while rents come in at $1,280/mo and $1,200/mo respectively.

Growth & appreciation: Indianapolis is growing faster at 0.9% annually vs Bloomington's 0.8%. Indianapolis leads on home value appreciation at 2.8% per year.

Costs & risk: Property taxes are 0.84% in Indianapolis vs 0.83% in Bloomington. Vacancy rates of 6.2% and 5.2% are mixed — Bloomington has the tighter rental market.

Bottom line: Indianapolis edges out Bloomington on most key metrics. While cap rates are moderate at 4.49%, Indianapolis's overall profile is stronger. Use our free calculators to model specific deals in Indianapolis or Bloomington.

Indianapolis, IN
4.49% cap rate · $235,000 median · $1,280/mo
Full analysis →
Bloomington, IN
4.18% cap rate · $235,000 median · $1,200/mo
Full analysis →
The CapRateCity Report
Weekly market analysis: highest cap rate cities, emerging markets, and deal breakdowns. Free, no spam.