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Kokomo vs Michigan City for Rental Property Investing

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

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Kokomo wins 3–0 across key metrics
Kokomo leads on cash flow (4.55% vs 3.87% cap rate)
Metric
Kokomo, IN
Michigan City, IN
Est. Cap Rate
4.55%
3.87%
Median Home Price
$185,000
$245,000
Median Monthly Rent
$1,010
$1,190
1% Rule
0.55%
0.49%
GRM
15.3x
17.2x
Price / Income
3.0x
4.0x
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 Michigan City: Which Is Better for Investors?

Cash flow: Kokomo has the edge with an estimated cap rate of 4.55% compared to Michigan City's 3.87%. 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 $245,000 in Michigan City, while rents come in at $1,010/mo and $1,190/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 Michigan City'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 Michigan City. Vacancy rates of 5.5% and 5.5% are both healthy, suggesting strong tenant demand in both markets.

Entry point: Kokomo offers a lower entry at $185K vs Michigan City's $245K — a difference of $60K. With a 20% down payment, that's $37K vs $49K. Kokomo combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Kokomo edges out Michigan City on most key metrics. While cap rates are moderate at 4.55%, Kokomo's overall profile is stronger. Use our free calculators to model specific deals in Kokomo or Michigan City.

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Kokomo, IN
4.55% cap rate · $185,000 median · $1,010/mo
Full analysis →
Michigan City, IN
3.87% cap rate · $245,000 median · $1,190/mo
Full analysis →

Frequently Asked Questions

Is Kokomo or Michigan City better for rental investing?
Kokomo wins 3–0 across our 7 key metrics (cap rate, 1% rule, GRM, taxes, vacancy, growth, appreciation). Kokomo's 4.55% cap rate and $185K median price offer both higher returns and a lower entry point.
What is the cap rate difference between Kokomo and Michigan City?
Kokomo has a 4.55% cap rate vs Michigan City's 3.87% — a difference of 0.68 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?
Michigan City has lower property taxes at 0.84% vs 0.84%. On a $215K property, that's a difference of approximately $504/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 Michigan City'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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