Indiana is one of the most affordable markets in the country in the Northeast with a small but investable metro of 50,000. At a 4.08% estimated cap rate, this is a moderate market where rents of $860/mo lag behind home prices. With a median home price of $155,000 and population is roughly stable, Indiana 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
Indiana's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $155,000, the $860/mo rent produces only $527/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 ($31K at 7%) would result in approximately $-298/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.
Property taxes consume 21% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Indiana a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
Pre-filled with Indiana medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Indiana.
Indiana, PA has a population of 50,000 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $155,000 paired with median rents of $860/mo produces an estimated cap rate of 4.08%.
Property taxes at 1.38% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 3.2x, homes cost about 3.2 times the local median income of $47,800. 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 2.3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Indiana presents moderate opportunities. Cap rates near 4.08% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.