Fishers, IN Cap Rate: 4.38% — Rental Property Analysis
Fishers is a mid-range market in the Midwest with a smaller market with 104,000 residents. At a 4.38% estimated cap rate, this is a moderate market where rents of $1,490/mo lag behind home prices. With a median home price of $285,000 and rapid population growth is driving housing demand, Fishers 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
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Moderate — source deals carefully
Based on $285,000 median price and $1,490/mo median rent
Est. Cap Rate
4.38%
1% Rule
0.52%
Fails
GRM
15.9x
Price / Income
2.7x
Market Data
Median Home Price$285,000
Median Monthly Rent$1,490
Property Tax Rate0.84%
Population104,000
Population Growth2.2% / yr
Median Household Income$104,000
Vacancy Rate4%
Annual Appreciation3.1%
2026 Market Update: Fishers
Fishers's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $285,000, the $1,490/mo rent produces only $1,041/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 ($57K at 7%) would result in approximately $-475/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.
With 2.2% annual population growth paired with 3.1% home appreciation, Fishers offers a rare combination of current cash flow and future equity upside. The 15.9x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.
Cap Rate Calculator — Fishers
Pre-filled with Fishers 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
3.65%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,409
net operating income
Gross Rent Multiplier
15.9x
High (>15)
1% Rule
0.52%
✗ Fails
Monthly Cash Flow
$867
before debt service
Annual Breakdown
Gross Rental Income$17,880
Less Vacancy−$715
Effective Income$17,165
Less Operating Expenses−$6,756
Net Operating Income$10,409
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Factor in financing to see your actual return on invested capital in Fishers.
$
$71,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.96%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$79,800
$71,250 down + $8,550 closing
Monthly Mortgage
$1,393
on $214K loan
Monthly Cash Flow
$-529
after all expenses
Annual Cash Flow
$-6,354
before taxes
Cash Flow Breakdown
Monthly Rent$1,490
Less Expenses−$626
Less Mortgage−$1,393
Monthly Cash Flow$-529
Is Fishers a Good Place to Invest in Rental Property?
Fishers, IN has a population of 104,000 and has been growing at 2.2% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $285,000 paired with median rents of $1,490/mo produces an estimated cap rate of 4.38%.
Property taxes at 0.84% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 2.7x, homes cost about 2.7 times the local median income of $104,000. 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 3.1% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Fishers presents moderate opportunities. Cap rates near 4.38% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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