Side-by-side comparison of Marion, IN and Michigan City, IN — cap rates, rent, prices, and investment metrics.
Cash flow: Marion has the edge with an estimated cap rate of 5.09% 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 $145,000 in Marion vs $245,000 in Michigan City, while rents come in at $860/mo and $1,190/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.
Growth & appreciation: Marion is growing faster at 0.9% annually vs Michigan City's 0.9%. Marion leads on home value appreciation at 2.6% per year.
Costs & risk: Property taxes are 0.84% in Marion 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: Marion offers a lower entry at $145K vs Michigan City's $245K — a difference of $100K. With a 20% down payment, that's $29K vs $49K. Marion combines the lower price with a higher cap rate — a compelling combination.
Bottom line: Marion edges out Michigan City 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 Marion or Michigan City.