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Rental Property Investment Guide: North Vernon, IN

Updated 2026 · Based on median market data for North Vernon, IN

Cap Rate
3.26%
Median Price
$220K
Rent/Mo
$950
1% Rule
0.43%
Fails

Market Snapshot

North Vernon sits in the Midwest with a population of 50,000 growing at 0.9% annually. The median home costs $220,000 while rents average $950/mo, producing an estimated cap rate of 3.26%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.

Who Should Invest Here

North Vernon works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 3.26% 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.

Deal Criteria for North Vernon

Target properties priced 15-25% below the $220,000 median — around $176,000 or less. At this price point with $950/mo rents, your cap rate improves to roughly 4.5%. Factor in 0.84% property taxes ($1,848/yr), budget 5% of gross rent for maintenance, and underwrite to a 5.5% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,424.

Risks and Considerations

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.

Next Steps

Run the numbers on a specific North Vernon property using our cap rate calculator (pre-filled with North Vernon data). Compare North Vernon against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.

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How North Vernon Compares

North Vernon vs Indiana state average and national average across key investment metrics. North Vernon's cap rate is below both benchmarks — deal sourcing is critical here.

Metric
North Vernon
Indiana Avg
National Avg
Cap Rate
3.26%
3.98%
3.81%
Median Price
$220K
$230K
$333K
Median Rent
$950
$1,124
$1,524
Property Tax
0.84%
0.84%
1.08%
Vacancy
5.5%
5.5%
5.6%
Pop. Growth
0.9%/yr
0.9%/yr
0.9%/yr

Nearby Midwest Markets

City
Cap Rate
Price
Rent
Tax
North Vernon, IN
3.3%
$220K
$950
0.84%
Fort Leonard Wood, MO
3.6%
$220K
$1,100
1.25%
Joplin, MO
4.3%
$220K
$1,230
1.25%
Mount Pleasant, MI
3.6%
$220K
$1,150
1.46%
Wisconsin Rapids, WI
2.2%
$220K
$950
1.88%

Frequently Asked Questions

Is North Vernon, IN a good place to invest in rental property?
North Vernon has an estimated cap rate of 3.26%, which is below the national average of 3.81%. With median home prices at $220K and rents of $950/mo, pure cash flow investing in North Vernon is challenging at median prices, but value-add strategies can work. Population growth of 0.9% and 5.5% vacancy rate indicate healthy tenant demand.
What is the average cap rate in North Vernon?
The estimated cap rate for North Vernon is 3.26%, based on median home prices of $220K, median rents of $950/mo, a 0.84% property tax rate, and 5.5% vacancy. This compares to a 3.98% average across Indiana and 3.81% nationally. Cap rates for individual properties will vary based on purchase price, actual rents, and property condition.
How much does a rental property cost in North Vernon?
The median home price in North Vernon is $220,000, which is 34% below the national average of $333,419. A 20% down payment would be approximately $44,000. Investment properties in North Vernon range significantly — targeting properties 15-25% below median can improve your cap rate substantially.
What are North Vernon property taxes for investors?
North Vernon's effective property tax rate is 0.84%, which is above the Indiana average of 0.84% and below the national average of 1.08%. On a $220K property, annual taxes are approximately $1,848 ($154/mo). Property taxes are moderate and manageable.
Full North Vernon Analysis →Cap Rate CalculatorBRRRR Calculator

Explore North Vernon & Related Markets

More North Vernon Guides

Rent AnalysisProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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