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Kokomo vs Marion for Rental Property Investing

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

Marion wins 3–0 across key metrics
Marion leads on cash flow (5.09% vs 4.55% cap rate) · Kokomo leads on population growth
Metric
Kokomo, IN
Marion, IN
Est. Cap Rate
4.55%
5.09%
Median Home Price
$185,000
$145,000
Median Monthly Rent
$1,010
$860
1% Rule
0.55%
0.59%
GRM
15.3x
14.1x
Price / Income
3.0x
2.4x
Property Tax Rate
0.84%
0.84%
Vacancy Rate
5.5%
5.5%
Population Growth
0.9% / yr
0.9% / yr
Annual Appreciation
2.6%
2.6%
Population
50,000
50,000
Median Income
$60,888
$60,888

Kokomo vs Marion: Which Is Better for Investors?

Cash flow: Marion has the edge with an estimated cap rate of 5.09% compared to Kokomo's 4.55%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $185,000 in Kokomo vs $145,000 in Marion, while rents come in at $1,010/mo and $860/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Kokomo is growing faster at 0.9% annually vs Marion's 0.9%. Kokomo leads on home value appreciation at 2.6% per year.

Costs & risk: Property taxes are 0.84% in Kokomo vs 0.84% in Marion. Vacancy rates of 5.5% and 5.5% are both healthy, suggesting strong tenant demand in both markets.

Entry point: Marion offers a lower entry at $145K vs Kokomo's $185K — a difference of $40K. With a 20% down payment, that's $29K vs $37K. Marion combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Marion edges out Kokomo on most key metrics. With a 5.09% cap rate, it offers solid cash flow potential. Use our free calculators to model specific deals in Kokomo or Marion.

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Kokomo, IN
4.55% cap rate · $185,000 median · $1,010/mo
Full analysis →
Marion, IN
5.09% cap rate · $145,000 median · $860/mo
Full analysis →

Frequently Asked Questions

Is Kokomo or Marion better for rental investing?
Marion wins 3–0 across our 7 key metrics. Marion's 5.09% cap rate and $145K median price give it the edge overall.
What is the cap rate difference between Kokomo and Marion?
Kokomo has a 4.55% cap rate vs Marion's 5.09% — a difference of 0.53 percentage points. This is a relatively small difference — other factors like growth, taxes, and local market conditions may matter more. For context, the national average is 3.81%.
Which city has lower property taxes?
Marion has lower property taxes at 0.84% vs 0.84%. On a $165K property, that's a difference of approximately $336/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Kokomo is growing at 0.9% annually vs Marion's 0.9%. Moderate growth provides stable demand. Kokomo's appreciation rate of 2.6% also leads on home value growth.

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