Indianapolis, IN: Rental Property ROI Analysis
|75 US 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, Indiana 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 Q2 2014 Rental Ranking Report just ranked Indianapolis as the 2nd best city for rental real estate investment in the Midwest, up three spots from the last quarter. Indianapolis is also currently the sixth-best market in the country, with an impressive jump up 13 spots from last quarter.
What data is this based on?
To calculate the All Property Management Rental Ranking Report, we explore a number of different sources, including current government housing and jobs data, as well as housing appreciation forecasts for 75 cities across the United States. We look at specific factors such as home vacancy rates, capitalization rates, home value appreciation rates, annual job growth, change in rental rates, and average days a property stays on the market to determine which U.S. cities are poised to give investors the highest return on their rental investment.
Indianapolis, although not the head of the leader board in any one category, has a strong showing in each of these input values with the exception of vacancy rates. A positive capitalization rate of 9.2 percent, for example, shows that property owners can expect a nice rate of return on their rental properties in Indianapolis. This figure is quite impressive, as it ranks 13th out of the 75 Metropolitan Statistical Areas that All Property Management evaluates for the Rental Ranking Report. Similarly, the rent variance, which looks at the change in rental rates year-over-year, is promising with an increase of 1.85 percent. Lastly, the average home in Indianapolis was only on the market 61 days prior to being sold. For reference, the top-performing city in this category is Denver, Colorado with just 25 days on market.
What does a high-ranking mean?
Is owning a rental property in Indianapolis profitable?
Quite simply, there has never been a better time to consider rental property investment in Indianapolis and the surrounding areas.
A combination of good rent variance and capitalization rates means that investment properties in Indianapolis can pay off financially.
Thinking about renting out your Indianapolis property? Seek the assistance of a local, qualified property manager and automate your rental profit.
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Our team at All Property Management specializes in connecting property owners with property agents in communities across the country. Expert property managers can assist with setting rental rates, advertising your property, screening and managing tenants, collecting rent, managing vendor relationships, and ensuring you are complying with local, state, and federal housing regulations, thus taking the hassle and worry out of managing your property. We look forward to working with you and welcome the opportunity to help you with all your property management needs.