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Fort Wayne, IN Cap Rate: 3.55% — Rental Property Analysis

Fort Wayne is a mid-range market in the Midwest with a mid-sized city of 270,402. At a 3.55% estimated cap rate, this is a appreciation-focused market where rents of $1,150/mo lag behind home prices. With a median home price of $250,000 and steady population growth supports long-term rental demand, Fort Wayne is primarily an appreciation play that requires creative strategies to generate positive cash flow.

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 $250,000 median price and $1,150/mo median rent
Est. Cap Rate
3.55%
1% Rule
0.46%
Fails
GRM
18.1x
Price / Income
5.1x

Market Data

Median Home Price$250,000
Median Monthly Rent$1,150
Property Tax Rate0.85%
Population270,402
Population Growth0.7% / yr
Median Household Income$48,600
Vacancy Rate5.8%
Annual Appreciation2.5%

2026 Market Update: Fort Wayne

Fort Wayne's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $250,000, the $1,150/mo rent produces only $740/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 ($50K at 7%) would result in approximately $-590/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 18.1x gross rent multiplier and 5.8% vacancy rate position Fort Wayne as a growth-dependent market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 6.0% before financing leverage.

Cap Rate Calculator — Fort Wayne

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.85% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.96%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,396
net operating income
Gross Rent Multiplier
18.1x
High (>15)
1% Rule
0.46%
✗ Fails
Monthly Cash Flow
$616
before debt service
Annual Breakdown
Gross Rental Income$13,800
Less Vacancy−$800
Effective Income$13,000
Less Operating Expenses−$5,604
Net Operating Income$7,396
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Cash-on-Cash Return — Fort Wayne

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

$
$62,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.52%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$70,000
$62,500 down + $7,500 closing
Monthly Mortgage
$1,222
on $188K loan
Monthly Cash Flow
$-555
after all expenses
Annual Cash Flow
$-6,664
before taxes
Cash Flow Breakdown
Monthly Rent$1,150
Less Expenses−$483
Less Mortgage−$1,222
Monthly Cash Flow$-555

Is Fort Wayne a Good Place to Invest in Rental Property?

Fort Wayne, IN has a population of 270,402 and has been growing at 0.7% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $250,000 paired with median rents of $1,150/mo produces an estimated cap rate of 3.55%.

Property taxes at 0.85% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 5.1x, homes cost about 5.1 times the local median income of $48,600. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.5% 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, Fort Wayne 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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