Rental Property Investing in Indianapolis, IN

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The numbers

Median sale price

$135,000

Median monthly rent

$1,125

Rent / price

0.83%

Estimated cap rate

6.8%

Estimated monthly cash flow

$41

Estimated cash-on-cash

1.6%

Sale prices

flat

Rents

rising

County population change (5 yrs)

2.5%

County unemployment

3.7%

Measured in ZIP 46218 on 2026-10-19. That’s one established investor neighborhood, not the whole city. The cash flow and cash-on-cash figures run the median price and rent through the calculator’s defaults (20% down, 7% interest, 30-year loan, a flat 1.1% property tax rate, standard vacancy, repairs and management), so they describe a typical house in that zip.

What to know about Indianapolis

Indianapolis has a mixed economy (logistics, health care, life sciences, state government), and the metro is big enough that no single employer sets the rental market. Prices run well under the coastal metros, which is most of the draw.

Indiana caps property tax at 2% of assessed value on rental housing, and a 2025 reform is phasing in deductions that lower the bill further. The state income tax is 2.90% in 2026, and counties add their own income tax on top, so a non-resident owner should ask an accountant what applies to the rent.

Landlord and tenant rules in Indiana

• Overall: balanced
• Security deposit limit: No statutory cap
• Rent control: no statewide rent control
• Notice for unpaid rent: 10 days

General information only, not legal advice. Landlord-tenant law changes and varies by city/county within a state. Verify current rules with a local attorney or your state's housing authority before relying on this. More on this in tenant-friendly vs landlord-friendly states.

Check a real deal in Indianapolis

Market medians point you at a city. Whether one house works depends on its own price, rent and repair needs, so paste them into the calculator, or read how cash-on-cash return and a good cap rate are worked out. If you’re buying from far away, the out-of-state guide covers property managers and remote closings.

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