Home · Markets · Indianapolis, IN
Indianapolis remains a top cash-flow market with mid-7% cap rates and lower property tax burden than peers. This page combines HUD Fair Market Rent anchors, ApartmentList-derived vacancy estimates, and CBRE-tier cap-rate benchmarks into one landlord-focused view.
Indianapolis remains a top cash-flow market with mid-7% cap rates and lower property tax burden than peers.
Vacancy is currently 6.8% with a year-over-year rent change of +2.6%. Rent direction is positive — underwriting can credit modest growth in year-2 rents but should not extrapolate aggressive trajectories given vacancy levels.
For deal-level analysis, the cap-rate calculator uses our Tier 2 benchmark (mid 7.1% for single-family). The cash-flow analyzer will give you a full P&L including debt service.
| Bedrooms | Median rent | Estimated range |
|---|---|---|
| Studio | $1,148 | $987 – $1,332 |
| 1 BR | $1,301 | $1,119 – $1,509 |
| 2 BR | $1,512 | $1,300 – $1,754 |
| 3 BR | $1,958 | $1,684 – $2,271 |
| 4 BR | $2,400 | $2,064 – $2,784 |
Anchored to HUD FMR for ZIP 46220, aged forward from 2025-10-01 with BLS CPI Shelter (+3.2% / yr, July 2026). Use the estimator below for a different ZIP within Indianapolis.
This city's raw HUD FY2026 2BR FMR placed among the 15 prebuilt metros in markets.json. One vintage point — not a fabricated history.
Pre-filled for ZIP 46220. Change any field to re-estimate.
The HUD-anchored median 2-bedroom rent in Indianapolis is approximately $1,512 with year-over-year growth of +2.6%. Individual rents vary widely by submarket and property condition — use the Rent Estimator above for a ZIP-specific number.
Indianapolis sits in our Tier 2 group with an estimated cap rate band averaging 7.1% for single-family rentals and a vacancy rate of 6.8%. Indianapolis remains a top cash-flow market with mid-7% cap rates and lower property tax burden than peers.
Single-family rental cap rates in Indianapolis typically land near 7.1%, with a metro-tier band drawn from CBRE survey ranges. Run the Cap Rate Calculator for a specific deal.
Year-over-year rent change is +2.6%. Forward 12-month projection blends recent metro trend with BLS shelter CPI. Use the LandlordIQ /get_rent_growth endpoint for the live projection.
No. Notice to vacate: 30 days. Security deposit cap: No statutory cap. Indiana is among the most landlord-friendly states. 10-day pay-or-quit notice. Plain-English summary, not legal advice.
Data: HUD Fair Market Rents (FY2026, public, revised county file). Vacancy and rent growth are estimated blends of public datasets clearly labeled. Cap rate band is the Tier 2 benchmark from our benchmarks dataset. Regulation summary is editorial — not legal advice. See methodology.