🏠 Rental Property Calculators Indiana

Indiana Rental Property ROI Calculator

Free Indiana rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Indiana's 0.85% property tax rate.

Free — No Sign-up Verified Data Editorially Reviewed Updated Feb 2026

Indiana Quick Facts

3.0% Income Tax Rate

0.85% Property Tax Rate

$61,944 Median Income

90.5 Cost of Living

How This Calculator Works

Calculation methodology and assumptions

This calculator uses standard real estate investment analysis to determine the return on a rental property in Indiana. It factors in the mortgage payment (using a standard amortization formula), property taxes at Indiana's effective rate of 0.85%, insurance, vacancy loss, maintenance reserves, and property management fees. The cap rate is calculated as Net Operating Income divided by purchase price. Cash-on-cash return measures annual cash flow relative to total cash invested (down payment + estimated closing costs). The 10-year projection assumes 3% annual appreciation and 2% annual rent increases.

Key State Information

Indiana has an effective property tax rate of 0.85%, which is below the national average of 1.10%. Indiana has a flat 3.05% state income tax that applies to rental income. Indiana offers a homestead exemption of up to $48,000 (applies to primary residence, not investment properties).

Standard financial formulas Pre-filled with real state data Estimates only — not financial advice

Data Source

Tax Foundation, HUD, Census Bureau

View Original Source | Verified 2024-12-01 | Updated annually

Frequently Asked Questions

What is the average property tax rate in Indiana?

Indiana's effective property tax rate is 0.85%, which means on a $225,000 home, you'd pay approximately $1,913 per year in property taxes.

Is Indiana a good state for rental property investment?

Indiana offers a median home price of $225,000 with 2BR rents averaging $925/month. Property tax rates are moderate. Use this calculator with your specific numbers to determine the actual ROI.

What is a good cap rate for rental property in Indiana?

A cap rate of 5-8% is generally considered good for rental properties. In Indiana, cap rates vary significantly by market. Urban areas tend to have lower cap rates (3-5%) but more consistent appreciation, while rural areas may offer higher cap rates (7-10%) with less growth potential.

How much do I need to invest in a rental property in Indiana?

For a median-priced home in Indiana ($225,000), a 20% down payment would be $45,000. Including estimated closing costs of $6,750, you'd need approximately $51,750 in cash.

Does Indiana have landlord-friendly laws?

Indiana is generally considered landlord-friendly with relatively streamlined eviction processes.