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Richmond vs Terre Haute for Rental Property Investing

Side-by-side comparison of Richmond, IN and Terre Haute, IN — cap rates, rent, prices, and investment metrics.

Terre Haute wins 3–0 across key metrics
Terre Haute leads on cash flow (5.23% vs 4.13% cap rate) · Richmond leads on population growth
Metric
Richmond, IN
Terre Haute, IN
Est. Cap Rate
4.13%
5.23%
Median Home Price
$165,000
$160,000
Median Monthly Rent
$840
$970
1% Rule
0.51%
0.61%
GRM
16.4x
13.7x
Price / Income
2.7x
2.6x
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

Richmond vs Terre Haute: Which Is Better for Investors?

Cash flow: Terre Haute has the edge with an estimated cap rate of 5.23% compared to Richmond's 4.13%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $165,000 in Richmond vs $160,000 in Terre Haute, while rents come in at $840/mo and $970/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

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

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

Entry point: Terre Haute offers a lower entry at $160K vs Richmond's $165K — a difference of $5K. With a 20% down payment, that's $32K vs $33K. Terre Haute combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Terre Haute edges out Richmond on most key metrics. With a 5.23% cap rate, it offers solid cash flow potential. Use our free calculators to model specific deals in Richmond or Terre Haute.

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Richmond, IN
4.13% cap rate · $165,000 median · $840/mo
Full analysis →
Terre Haute, IN
5.23% cap rate · $160,000 median · $970/mo
Full analysis →

Frequently Asked Questions

Is Richmond or Terre Haute better for rental investing?
Terre Haute wins 3–0 across our 7 key metrics. Terre Haute's 5.23% cap rate and $160K median price give it the edge overall.
What is the cap rate difference between Richmond and Terre Haute?
Richmond has a 4.13% cap rate vs Terre Haute's 5.23% — a difference of 1.10 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?
Terre Haute has lower property taxes at 0.84% vs 0.84%. On a $163K property, that's a difference of approximately $42/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Richmond is growing at 0.9% annually vs Terre Haute's 0.9%. Moderate growth provides stable demand. Richmond's appreciation rate of 2.6% also leads on home value growth.

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