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Terre Haute vs Warsaw for Rental Property Investing

Side-by-side comparison of Terre Haute, IN and Warsaw, 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 2.94% cap rate)
Metric
Terre Haute, IN
Warsaw, IN
Est. Cap Rate
5.23%
2.94%
Median Home Price
$160,000
$275,000
Median Monthly Rent
$970
$1,110
1% Rule
0.61%
0.40%
GRM
13.7x
20.6x
Price / Income
2.6x
4.5x
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

Terre Haute vs Warsaw: Which Is Better for Investors?

Cash flow: Terre Haute has the edge with an estimated cap rate of 5.23% compared to Warsaw's 2.94%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $160,000 in Terre Haute vs $275,000 in Warsaw, while rents come in at $970/mo and $1,110/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

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

Costs & risk: Property taxes are 0.84% in Terre Haute vs 0.84% in Warsaw. 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 Warsaw's $275K — a difference of $115K. With a 20% down payment, that's $32K vs $55K. Terre Haute combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Terre Haute edges out Warsaw 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 Terre Haute or Warsaw.

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Terre Haute, IN
5.23% cap rate · $160,000 median · $970/mo
Full analysis →
Warsaw, IN
2.94% cap rate · $275,000 median · $1,110/mo
Full analysis →

Frequently Asked Questions

Is Terre Haute or Warsaw better for rental investing?
Terre Haute wins 3–0 across our 7 key metrics (cap rate, 1% rule, GRM, taxes, vacancy, growth, appreciation). Terre Haute's 5.23% cap rate and $160K median price offer both higher returns and a lower entry point.
What is the cap rate difference between Terre Haute and Warsaw?
Terre Haute has a 5.23% cap rate vs Warsaw's 2.94% — a difference of 2.30 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?
Warsaw has lower property taxes at 0.84% vs 0.84%. On a $218K property, that's a difference of approximately $966/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Terre Haute is growing at 0.9% annually vs Warsaw's 0.9%. Moderate growth provides stable demand. Terre Haute's appreciation rate of 2.6% also leads on home value growth.

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