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Lafayette vs Columbus for Rental Property Investing

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

Columbus wins 4–3 across key metrics
Lafayette leads on cash flow (4.06% vs 4.03% cap rate) · Columbus leads on population growth
Metric
Lafayette, IN
Columbus, IN
Est. Cap Rate
4.06%
4.03%
Median Home Price
$275,000
$270,000
Median Monthly Rent
$1,390
$1,350
1% Rule
0.51%
0.50%
GRM
16.5x
16.7x
Price / Income
6.0x
4.4x
Property Tax Rate
0.85%
0.84%
Vacancy Rate
5.8%
5.5%
Population Growth
0.6% / yr
0.9% / yr
Annual Appreciation
2.4%
2.6%
Population
73,000
50,000
Median Income
$46,200
$60,888

Lafayette vs Columbus: Which Is Better for Investors?

Cash flow: Lafayette has the edge with an estimated cap rate of 4.06% compared to Columbus's 4.03%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $275,000 in Lafayette vs $270,000 in Columbus, while rents come in at $1,390/mo and $1,350/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Columbus is growing faster at 0.9% annually vs Lafayette's 0.6%. Columbus leads on home value appreciation at 2.6% per year.

Costs & risk: Property taxes are 0.85% in Lafayette vs 0.84% in Columbus. Vacancy rates of 5.8% and 5.5% are both healthy, suggesting strong tenant demand in both markets.

Entry point: Columbus offers a lower entry at $270K vs Lafayette's $275K — a difference of $5K. With a 20% down payment, that's $54K vs $55K. Lafayette's higher price may be justified by better market fundamentals.

Bottom line: Columbus edges out Lafayette on most key metrics. While cap rates are moderate at 4.03%, Columbus's overall profile is stronger. Use our free calculators to model specific deals in Lafayette or Columbus.

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Lafayette, IN
4.06% cap rate · $275,000 median · $1,390/mo
Full analysis →
Columbus, IN
4.03% cap rate · $270,000 median · $1,350/mo
Full analysis →

Frequently Asked Questions

Is Lafayette or Columbus better for rental investing?
Columbus wins 4–3 across our 7 key metrics. Columbus's 4.03% cap rate and $270K median price give it the edge overall.
What is the cap rate difference between Lafayette and Columbus?
Lafayette has a 4.06% cap rate vs Columbus's 4.03% — a difference of 0.03 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?
Columbus has lower property taxes at 0.84% vs 0.85%. On a $273K property, that's a difference of approximately $70/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Columbus is growing at 0.9% annually vs Lafayette's 0.6%. Moderate growth provides stable demand. Columbus's appreciation rate of 2.6% also leads on home value growth.

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