Figvest

Rental Investing in Indianapolis, IN

2026 Market Data & Investment Analysis

Gross Yield

6.6%

Annual rent / price

Median Home Price

$235,000

As of 2026-Q1

Median Monthly Rent

$1,300

Per month

Population

887,642

+0.8% / yr (5y avg)

Calculate Your Return in Indianapolis

Pre-filled with Indianapolis's median values. Adjust to match your specific property.

Property Details

$

Total acquisition cost before taxes

$
$

HOA, insurance, property management

%

% of time the property is empty

%

% of purchase price (e.g. 2% = 2)

% of price

Rule of thumb: 1% of purchase price/yr

Results

Gross Rental Yield

6.64%

Net Rental Yield

4.29%

Cap Rate

4.29%

Monthly Cash Flow

$839.17

Annual Cash Flow

$10,070.00

> 6% — Excellent4–6% — Good< 4% — Low

Market Overview

Median Home Price — 5-Year Trend

2021
$200,000
2022
$260,000
2023
$245,000
2024
$239,000
2025
$235,000

Median Monthly Rent — 5-Year Trend

2021
$1,100
2022
$1,270
2023
$1,300
2024
$1,302
2025
$1,300

Indianapolis provides solid rental yields of 6.6%, in line with healthy investment market benchmarks.

Modest population growth of 0.8% per year indicates a stable but slowly growing rental market.

The vacancy rate of 6.2% is healthy, indicating strong rental demand and limited downtime between tenants.

Investment Profile

Cash Flow Market

Indianapolis is a cash flow-focused market where high rental yields can generate strong monthly income. Lower population growth means price appreciation may be limited, making this primarily an income play.

✓ Strengths

  • •High gross yield of 6.6% supports strong monthly cash flow
  • •Lower entry prices relative to rents reduce upfront capital needed
  • •Income-driven returns are less dependent on market timing

! Risks

  • •Limited price appreciation potential reduces total return
  • •Modest population growth limits long-term demand growth

Key Metrics

Gross Yield6.6%
Median Home Price$235,000
Median Monthly Rent$1,300
Population Growth+0.8% / yr
Vacancy Rate6.2%

How Indianapolis Compares

Indianapolis vs Chicago: 0.0 percentage point difference in gross yield.

CityMedian PriceMedian RentGross YieldPop. Growth
Chicago, IL$290,000$1,6006.6%-0.5%
Columbus, OH$250,000$1,3506.5%+1.1%
Cincinnati, OH$220,000$1,2006.5%+0.3%
Louisville, KY$210,000$1,2006.9%+0.3%
St. Louis, MO$175,000$1,1007.5%-0.8%

Frequently Asked Questions

Is rental investing profitable in Indianapolis?▾
Yes, Indianapolis offers a gross rental yield of 6.6%, which is above the national average of around 5–6%. With a median home price of $235,000 and median monthly rent of $1,300, the numbers support profitable rental investing — though your specific results depend on financing terms, expenses, and property management.
What is the average rental yield in Indianapolis?▾
The average gross rental yield in Indianapolis is approximately 6.6%, based on a median home price of $235,000 and median monthly rent of $1,300 (as of 2026-Q1). Net yield, which accounts for vacancy, expenses, and maintenance, is typically 2–3 percentage points lower.
How does Indianapolis compare to Chicago for investors?▾
Indianapolis has a gross yield of 6.6% compared to 6.6% in Chicago, a difference of 0.0 percentage points. Both markets offer similar yields. Indianapolis has stronger population growth (0.8% vs -0.5%), suggesting better long-term demand dynamics.

Ready to Analyse a Specific Property in Indianapolis?

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Compare with nearby cities:

Chicago, ILColumbus, OHCincinnati, OHLouisville, KY

Data source: Zillow Research / U.S. Census Bureau. Last updated: 2026-Q1. This information is for educational purposes only and does not constitute investment advice.