Updated 2026 · Based on median market data for Indiana, PA
Indiana sits in the Northeast with a population of 50,000 growing at 0.2% annually. The median home costs $155,000 while rents average $860/mo, producing an estimated cap rate of 4.08%. This is a moderate market that rewards careful deal sourcing.
Indiana works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 4.08% 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 $860/mo rents, your cap rate improves to roughly 5.6%. Factor in 1.38% property taxes ($2,139/yr), budget 5% of gross rent for maintenance, and underwrite to a 6% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,103.
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 Indiana property using our cap rate calculator (pre-filled with Indiana data). Compare Indiana against similar markets in the Northeast region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.
Indiana vs Pennsylvania state average and national average across key investment metrics. Indiana outperforms both benchmarks on cap rate.