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

Muncie vs New Castle for Rental Property Investing

Side-by-side comparison of Muncie, IN and New Castle, IN — cap rates, rent, prices, and investment metrics.

Muncie wins 3–0 across key metrics
Muncie leads on cash flow (5.10% vs 3.75% cap rate)
Metric
Muncie, IN
New Castle, IN
Est. Cap Rate
5.10%
3.75%
Median Home Price
$165,000
$185,000
Median Monthly Rent
$980
$880
1% Rule
0.59%
0.48%
GRM
14.0x
17.5x
Price / Income
2.7x
3.0x
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

Muncie vs New Castle: Which Is Better for Investors?

Cash flow: Muncie has the edge with an estimated cap rate of 5.10% compared to New Castle's 3.75%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $165,000 in Muncie vs $185,000 in New Castle, while rents come in at $980/mo and $880/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

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

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

Entry point: Muncie offers a lower entry at $165K vs New Castle's $185K — a difference of $20K. With a 20% down payment, that's $33K vs $37K. Muncie combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Muncie edges out New Castle on most key metrics. With a 5.10% cap rate, it offers solid cash flow potential. Use our free calculators to model specific deals in Muncie or New Castle.

Sponsored · Want to analyze a specific property? DealCheck imports real listing data and runs the full analysis for you.
Try Free →
Muncie, IN
5.10% cap rate · $165,000 median · $980/mo
Full analysis →
New Castle, IN
3.75% cap rate · $185,000 median · $880/mo
Full analysis →

Frequently Asked Questions

Is Muncie or New Castle better for rental investing?
Muncie wins 3–0 across our 7 key metrics (cap rate, 1% rule, GRM, taxes, vacancy, growth, appreciation). Muncie's 5.10% cap rate and $165K median price offer both higher returns and a lower entry point.
What is the cap rate difference between Muncie and New Castle?
Muncie has a 5.10% cap rate vs New Castle's 3.75% — a difference of 1.34 percentage points. This is a significant gap that meaningfully impacts cash flow. For context, the national average is 3.81%.
Which city has lower property taxes?
New Castle has lower property taxes at 0.84% vs 0.84%. On a $175K property, that's a difference of approximately $168/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Muncie is growing at 0.9% annually vs New Castle's 0.9%. Moderate growth provides stable demand. Muncie's appreciation rate of 2.6% also leads on home value growth.

Explore More

The CapRateCity Report
Weekly market analysis: highest cap rate cities, emerging markets, and deal breakdowns. Free, no spam.