Updated 2026 · Based on median market data for Bloomington, IN
Home values in Bloomington, IN have appreciated at 2.6% per year. Appreciation is modest, meaning total returns will be driven primarily by cash flow rather than equity gains. This is actually preferred by many investors who want predictable, income-based returns.
If Bloomington continues appreciating at 2.6% annually, the current median of $235,000 would reach approximately $267,180 in 5 years — an equity gain of $32,180 on a property purchased at the median. With a 20% down payment of $47,000, that represents a 68% return on invested equity from appreciation alone. Combined with 5 years of NOI totaling approximately $49,103, the projected total return is $81,284 — a 173% cumulative return on the initial investment.
Bloomington's population growth of 0.8% is moderate and positive, supporting steady but not explosive demand for housing. Markets with this growth profile tend to appreciate consistently without the boom-bust cycles of hyper-growth metros.
Smart investors evaluate both cash flow AND appreciation. In Bloomington, the 4.18% cap rate provides moderate ongoing cash flow, while 2.6% annual appreciation adds an equity component. Conservative underwriting is essential. Focus on deals where the cash flow stands on its own, and treat any appreciation as a bonus.