Updated 2026 · Based on median market data for Terre Haute, IN
Home values in Terre Haute, IN have appreciated at 2.6% per year. Appreciation is modest, meaning total returns will be driven primarily by cash flow rather than equity gains. This is actually preferred by many investors who want predictable, income-based returns.
If Terre Haute continues appreciating at 2.6% annually, the current median of $160,000 would reach approximately $181,910 in 5 years — an equity gain of $21,910 on a property purchased at the median. With a 20% down payment of $32,000, that represents a 68% return on invested equity from appreciation alone. Combined with 5 years of NOI totaling approximately $41,879, the projected total return is $63,789 — a 199% cumulative return on the initial investment.
Terre Haute's population growth of 0.9% is moderate and positive, supporting steady but not explosive demand for housing. Markets with this growth profile tend to appreciate consistently without the boom-bust cycles of hyper-growth metros. Higher-than-average local incomes ($60,888) support continued price growth as more residents can afford to bid up properties.
Smart investors evaluate both cash flow AND appreciation. In Terre Haute, the 5.23% cap rate provides strong ongoing cash flow, while 2.6% annual appreciation adds an equity component. The strong cash flow here means your returns are mostly realized as income rather than paper equity — a more conservative and predictable return profile.
Terre Haute vs Indiana state average and national average across key investment metrics. Terre Haute outperforms both benchmarks on cap rate.