Updated 2026 · Based on median market data for Evansville, IN
Evansville sits in the Midwest with a population of 117,429 growing at 0.2% annually. The median home costs $155,000 while rents average $950/mo, producing an estimated cap rate of 5.26%. This is a moderate market that rewards careful deal sourcing.
Evansville works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 5.26% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.
Target properties priced 15-25% below the $155,000 median — around $124,000 or less. At this price point with $950/mo rents, your cap rate improves to roughly 7.0%. Factor in 0.82% property taxes ($1,271/yr), budget 5% of gross rent for maintenance, and underwrite to a 6.5% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,031.
Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.
Run the numbers on a specific Evansville property using our cap rate calculator (pre-filled with Evansville data). Compare Evansville against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.