Connersville is one of the most affordable markets in the country in the Midwest with a small but investable metro of 50,000. At a 4.21% estimated cap rate, this is a moderate market where rents of $800/mo lag behind home prices. With a median home price of $155,000 and steady population growth supports long-term rental demand, Connersville offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Connersville's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $155,000, the $800/mo rent produces only $544/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($31K at 7%) would result in approximately $-281/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
The 16.1x gross rent multiplier and 5.5% vacancy rate position Connersville as a balanced market. With annual appreciation at 2.6%, total returns (cash flow + equity growth) run approximately 6.8% before financing leverage.
Pre-filled with Connersville medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Connersville.
Connersville, IN has a population of 50,000 and has been growing at 0.9% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $155,000 paired with median rents of $800/mo produces an estimated cap rate of 4.21%.
Property taxes at 0.84% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 2.5x, homes cost about 2.5 times the local median income of $60,888. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.6% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Connersville presents moderate opportunities. Cap rates near 4.21% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.