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Rent Analysis: Connersville, IN

Updated 2026 · Based on median market data for Connersville, IN

Cap Rate
4.21%
Median Price
$155K
Rent/Mo
$800
1% Rule
0.52%
Fails

Rent Overview

The median monthly rent in Connersville, IN is $800, translating to $9,600 in annual gross rental income per unit. The rent-to-price ratio is 0.52% — well below the 1% rule, making pure cash flow investing challenging at median prices and requiring investors to target below-median purchases or value-add strategies. For context, a 0.52% rent-to-price ratio means that for every $100,000 invested in property, you collect approximately $516/mo in gross rent. The gross rent multiplier of 16.1x means it takes 16.1 years of gross rent to equal the purchase price — a high ratio that reflects price appreciation outpacing rent growth.

Rent Affordability

Renters in Connersville spend approximately 16% of the local median household income ($60,888) on rent. This is well below the 30% threshold, suggesting significant headroom for rent increases. The 30% affordability ceiling puts maximum supportable rent at approximately $1,522/mo — a full $722/mo above the current median of $800. This gap represents real upside for landlords who invest in property upgrades that justify premium rents.

Vacancy & Tenant Demand

The vacancy rate in Connersville is 5.5%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Budget for one month of vacancy per year in your underwriting to be conservative. Population growth of 0.9% annually provides stable demand.

Gross Rent Multiplier

Connersville's GRM (price divided by annual rent) is 16.1x. A GRM above 16x means the property is expensive relative to its income. Investors here are typically betting on appreciation rather than current cash flow, which adds risk if the appreciation thesis does not materialize. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x. To beat Connersville's median GRM, target properties where you can achieve rents above $800 through renovations, better marketing, or targeting underserved tenant segments — or buy at a discount to the $155,000 median price. Every point lower on GRM translates to roughly 0.5-0.8% improvement in your cap rate.

Rental Income Projection

At the median rent of $800/mo, a single-family rental in Connersville generates approximately $9,600 in gross annual income. After accounting for 5.5% vacancy ($528 lost), property taxes of $1,302, insurance (~$620), and maintenance (~$620), the estimated NOI is $6,530 per year, or $544/mo. Adding an 8% management fee ($768/yr) reduces investor cash flow further. Before debt service, you are looking at approximately $5,762/yr in landlord net income. Whether this is attractive depends on your total capital invested — at a $31,000 down payment, the unlevered yield on equity from NOI alone is 21.1%.

Rent Growth Potential

Rent growth in Connersville is driven by the interplay of population growth (0.9%), income growth, and housing supply constraints. Moderate population growth of 0.9% supports steady rent increases of approximately 2.5% per year. That trajectory takes today's $800/mo to $862 in 3 years and $905 in 5 years. The affordability headroom of $722/mo between current rents and the 30% income threshold provides substantial room for rent increases without pushing tenants into financial stress.

Tenant Profile

With a median income of $60,888 and affordable home prices ($155,000), many tenants in Connersville are working families and individuals who could buy but choose to rent — or are saving for a down payment. This creates a reliable tenant base that values stability and tends to stay longer, reducing turnover costs. In a smaller market of 50,000 residents, word-of-mouth and local listing platforms may be more effective than national sites for finding tenants.

Management Considerations

Connersville is a smaller market where professional PM options may be limited. Fees can run 10-12% of rent, and the quality of available managers varies widely. At $800/mo, management costs roughly $88/mo. Self-management makes sense if you are local, have fewer than 5 units, and the rent level justifies your time — at $800/mo, management fees consume a large percentage of your cash flow — self-management may be necessary to maintain positive returns on smaller portfolios.

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How Connersville Compares

Connersville vs Indiana state average and national average across key investment metrics. Connersville outperforms both benchmarks on cap rate.

Metric
Connersville
Indiana Avg
National Avg
Cap Rate
4.21%
3.98%
3.81%
Median Price
$155K
$230K
$333K
Median Rent
$800
$1,124
$1,524
Property Tax
0.84%
0.84%
1.08%
Vacancy
5.5%
5.5%
5.6%
Pop. Growth
0.9%/yr
0.9%/yr
0.9%/yr

Nearby Midwest Markets

City
Cap Rate
Price
Rent
Tax
Connersville, IN
4.2%
$155K
$800
0.84%
Salem, OH
5.3%
$155K
$1,070
1.58%
Cambridge, OH
4.8%
$160K
$1,020
1.58%
Carbondale, IL
3.6%
$150K
$860
2.06%
Freeport, IL
3.5%
$150K
$850
2.06%

Frequently Asked Questions

What is the average rent in Connersville, IN?
The median monthly rent in Connersville is $800, or $9,600 per year. This is 48% below the national average of $1,524/mo. Rent levels vary by neighborhood, property condition, and unit size — always verify comparable rents for your target property.
Is Connersville a good rental market for landlords?
With a rent-to-price ratio of 0.52%, Connersville falls below the 1% rule, meaning cash flow depends on buying below median or achieving above-median rents. The 5.5% vacancy rate signals tight rental demand, favorable for landlords.
How does Connersville rent compare to Indiana averages?
Connersville's median rent of $800/mo is 29% below the Indiana average of $1,124/mo. Home prices at $155K are below the state average of $230K, giving Connersville a rent-to-price ratio of 0.52% vs 0.49% statewide.
What is a good rent-to-price ratio?
The 1% rule says monthly rent should be at least 1% of purchase price ($1,000/mo rent on a $100,000 home). Connersville's ratio is 0.52%. Generally, above 0.8% is workable with good financing, above 1% is strong, and above 1.2% is exceptional. The national average across the 300+ cities we track is 0.46%.
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More Connersville Guides

Rental Property Investment GuideProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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