Indianapolis, IN: Rental Property ROI Analysis
|75 U.S. City Avg.
Big enough to offer all the choices and amenities one expects of a large city, yet small enough to make getting around manageable, the city of Indianapolis, the City of Statues, continues to be popular with residents of all types. Not only does it have the third-best downtown in America, according to Livability.com, but USA Today also ranks it as the winningest sports city in North America.
It probably comes as no surprise, then, that Indianapolis is also a great place to own rental property. In fact, All Property Management found in its Q1 2015 Rental Ranking Report that Indianapolis is the second-best city for rental real estate investment in the Midwest. It's also the 18th-best rental market in the country out of the 75 markets we track, on the strength of its solid rental yields and a relatively low cost of living.
Indianapolis benefits from being the Indiana state capital, which equates to a good deal of economic stability, as state governments rarely engage in mass layoffs. This is reflected in its solid showing in the job growth category, with 2.97 percent employment growth in the city - 22nd-best out of 75 markets. While Indianapolis posts respectable rental market statistics across the board, it's a leader in cap rates, or the rate of rental return per dollar of home value. Its cap rate of 8.98 percent is the 9th best in the nation and shows that property owners can expect a nice rate of return on their rental properties there.
What data is this Rental Ranking Report based on?
To calculate the statistics found in the Q1 2015 Rental Ranking Report, All Property Management gathered data, including the most recent government housing and jobs data, for 75 metros across the United States. Specifically, we looked at home vacancy, capitalization, home value appreciation and job growth rates, changes in rental prices, and the average number of days properties have been on the market to determine which U.S. metros will give investors the highest returns on rental investments. Click here to learn more about the Rental Ranking metrics.
Should I invest in Indianapolis rental property?
Quite simply, there has never been a better time to invest in rental real estate in the Indianapolis metropolitan area. The combination of excellent capitalization rates and a growing local economy indicates that investment properties in Indianapolis are promising indeed.
Thinking about renting out a property in Indianapolis? Save time, avoid hassle and maximize your rental income by having a professional property management company operate your rental property for you. Click here to get a free quote from a local property manager or call 877-780-4510 to have the All Property Management staff get quotes for you.
All Property Management specializes in connecting rental property owners with professional property managers in communities across the United States. These property managers help set rental rates, advertise properties, screen and manage tenants, collect rent, manage vendor relationships and ensure compliance with local, state and federal housing regulations. They take the hassle and worry out of managing rental properties - all while maximizing rental property owners' rental incomes.