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Cap Rate Analysis: Elkhart, IN

Investment metrics, interactive calculators, and data-driven analysis for Elkhart rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Challenging for pure cash flow
Based on $255,000 median price and $1,080/mo median rent
Est. Cap Rate
3.16%
1% Rule
0.42%
Fails
GRM
19.7x
Price / Income
4.2x

Market Data

Median Home Price$255,000
Median Monthly Rent$1,080
Property Tax Rate0.84%
Population50,000
Population Growth0.9% / yr
Median Household Income$60,888
Vacancy Rate5.5%
Annual Appreciation2.6%

Cap Rate Calculator — Elkhart

Pre-filled with Elkhart medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.84% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.65%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,751
net operating income
Gross Rent Multiplier
19.7x
High (>15)
1% Rule
0.42%
✗ Fails
Monthly Cash Flow
$563
before debt service
Annual Breakdown
Gross Rental Income$12,960
Less Vacancy−$713
Effective Income$12,247
Less Operating Expenses−$5,496
Net Operating Income$6,751
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Cash-on-Cash Return — Elkhart

Factor in financing to see your actual return on invested capital in Elkhart.

$
$63,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.43%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$71,400
$63,750 down + $7,650 closing
Monthly Mortgage
$1,247
on $191K loan
Monthly Cash Flow
$-621
after all expenses
Annual Cash Flow
$-7,450
before taxes
Cash Flow Breakdown
Monthly Rent$1,080
Less Expenses−$454
Less Mortgage−$1,247
Monthly Cash Flow$-621

Is Elkhart a Good Place to Invest in Rental Property?

Elkhart, 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 $255,000 paired with median rents of $1,080/mo produces an estimated cap rate of 3.16%.

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 4.2x, homes cost about 4.2 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: At current median prices, Elkhart is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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