Cash Flow Investing in Indianapolis, IN
Data-driven cash flow analysis for Indianapolis, IN — score breakdown, key investment metrics, and how it compares to other markets.
Last updated: May 2026
Score Breakdown
Key Metrics for Cash Flow
Cap Rate
8.1%
Strong
Rent-to-Price
0.77%
Below 1% rule
Vacancy Rate
9.7%
Elevated
Property Tax
0.84%
Very low
Cash Flow Investment Thesis
Indianapolis is the best-balanced cash flow market in the country — positive population growth, diversified economy, landlord-friendly laws, and prices that still support the 1% rule in many neighborhoods. It checks every box for a first-time out-of-state investor.
How Indianapolis Compares
| Rank | City | Cash Flow Score | Cap Rate | Median Price |
|---|---|---|---|---|
| #6 | Dayton, OH | 5.4 | 8.8% | $95,000 |
| #7 | Birmingham, AL | 5.4 | 8.5% | $125,000 |
| #8 | Huntsville, AL | 5.4 | 7.1% | $260,000 |
| #9 | Indianapolis, IN | 5.3 | 8.1% | $175,000 |
| #10 | Tulsa, OK | 5.2 | 7.9% | $155,000 |
| #11 | Louisville, KY | 5.2 | 7.3% | $195,000 |
| #12 | Oklahoma City, OK | 5.0 | 7.7% | $175,000 |
Showing markets ranked near Indianapolis for this strategy.
Quick Math: Estimated Annual Return
Based on median market data. Your actual returns will vary based on specific property, financing, and management costs. Always run your own analysis before investing.
Frequently Asked Questions
What is the cash flow score for Indianapolis, IN?
Indianapolis, IN scores 5.3 out of 10 on our cash flow score, ranking #9 out of 52 markets we track. Weighted composite: rent-to-price ratio (30%), cap rate (30%), low vacancy (20%), low property taxes (20%). Scale 0–10.
Is Indianapolis a good city for cash flow investing?
Yes — Indianapolis, IN ranks in the top 10 for cash flow investing with a score of 5.3/10. Key factors include a median home price of $175,000, cap rate of 8.1%, and positive population growth of +3.2%.
What is the average cap rate in Indianapolis?
The average cap rate in Indianapolis, IN is 8.1%. The median home price is $175,000 with a median monthly rent of $1,350, resulting in a rent-to-price ratio of 0.77%.
What are the property taxes in Indianapolis?
The effective property tax rate in Indianapolis, IN is 0.84%. On a $175,000 property, that translates to approximately $1,470 per year in property taxes.
How does Indianapolis compare to other cash flow markets?
Among our 52 tracked markets, Indianapolis, IN ranks #9 for cash flow investing. It performs above average for this strategy.
Does Indianapolis meet the 1% rule?
Indianapolis, IN has a rent-to-price ratio of 0.77%, which falls significantly below the 1% rule. However, the 1% rule is a rough guideline — individual deals can still cash flow well in this market.
Run Your Own Numbers for Indianapolis
Use our free calculators pre-filled with Indianapolis, IN market data, or adjust the numbers for your specific deal.
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