Seymour, IN Cap Rate 4.41%
Seymour is a budget-friendly market in the Midwest with a small but investable metro of 50,000. At a 4.41% estimated cap rate, this is a moderate market where rents of $1,200/mo lag behind home prices. With a median home price of $225,000 and steady population growth supports long-term rental demand, Seymour 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
Market Data
2026 Market Update: Seymour
Seymour's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $225,000, the $1,200/mo rent produces only $827/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 ($45K at 7%) would result in approximately $-370/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 15.6x gross rent multiplier and 5.5% vacancy rate position Seymour as a balanced market. With annual appreciation at 2.6%, total returns (cash flow + equity growth) run approximately 7.0% before financing leverage.
Deal Modeling & Scenarios for Seymour
All figures below are computed from Seymour's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.84% effective rate on the $225,000 median price, the annual tax bill is $1,890 — that's below national average (-21% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If Seymour continues appreciating at 2.6%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $225K | $1,200 | 4.4% |
| Year 1 | $231K | $1,236 | 4.4% |
| Year 2 | $237K | $1,273 | 4.4% |
| Year 3 | $243K | $1,311 | 4.5% |
| Year 4 | $249K | $1,351 | 4.5% |
| Year 5 | $256K | $1,391 | 4.5% |
Three Financing Scenarios
Same median-priced Seymour property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $225K | $827 | $9,918 | 4.4% |
| 20% down conventional @ 7% | $52K | $-370 | $-4,446 | -8.6% |
| 25% down DSCR @ 8.5% | $65K | $-471 | $-5,654 | -8.7% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $169K | $1,020 | $7,516 | 4.5% | $626 |
| At median | $225K | $1,200 | $8,514 | 3.8% | $710 |
| Above median (~125% price) | $281K | $1,380 | $9,512 | 3.4% | $793 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Seymour's historical appreciation rate of 2.6%:
On a $45K down payment, that's a 49.1% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Seymour
Automated checks against the underlying data — surface only the risks that actually apply to Seymour, not generic boilerplate:
Cap Rate Calculator — Seymour
Pre-filled with Seymour medians. Adjust to match a specific property.
Cash-on-Cash Return — Seymour
Factor in financing to see your actual return on invested capital in Seymour.
Is Seymour a Good Place to Invest in Rental Property?
Seymour, IN has a population of 50,000 and has been growing at 0.9% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $225,000 paired with median rents of $1,200/mo produces an estimated cap rate of 4.41%.
Property taxes at 0.84% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 3.7x, homes cost about 3.7 times the local median income of $60,888. 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 2.6% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Seymour presents moderate opportunities. Cap rates near 4.41% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.