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Cap Rate Analysis: Terre Haute, IN

Investment metrics, interactive calculators, and data-driven analysis for Terre Haute rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Moderate — source deals carefully
Based on $160,000 median price and $970/mo median rent
Est. Cap Rate
5.23%
1% Rule
0.61%
Fails
GRM
13.7x
Price / Income
2.6x

Market Data

Median Home Price$160,000
Median Monthly Rent$970
Property Tax Rate0.84%
Population50,000
Population Growth0.9% / yr
Median Household Income$60,888
Vacancy Rate5.5%
Annual Appreciation2.6%

Cap Rate Calculator — Terre Haute

Pre-filled with Terre Haute medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.84% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.32%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,920
net operating income
Gross Rent Multiplier
13.7x
Good (<15)
1% Rule
0.61%
✗ Fails
Monthly Cash Flow
$577
before debt service
Annual Breakdown
Gross Rental Income$11,640
Less Vacancy−$640
Effective Income$11,000
Less Operating Expenses−$4,080
Net Operating Income$6,920
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Cash-on-Cash Return — Terre Haute

Factor in financing to see your actual return on invested capital in Terre Haute.

$
$40,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.87%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$44,800
$40,000 down + $4,800 closing
Monthly Mortgage
$782
on $120K loan
Monthly Cash Flow
$-219
after all expenses
Annual Cash Flow
$-2,632
before taxes
Cash Flow Breakdown
Monthly Rent$970
Less Expenses−$407
Less Mortgage−$782
Monthly Cash Flow$-219

Is Terre Haute a Good Place to Invest in Rental Property?

Terre Haute, 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 $160,000 paired with median rents of $970/mo produces an estimated cap rate of 5.23%.

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 2.6x, homes cost about 2.6 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: Terre Haute presents moderate opportunities. Cap rates near 5.23% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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