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Bloomington vs Carmel for Rental Property Investing

Side-by-side comparison of Bloomington, IN and Carmel, IN — cap rates, rent, prices, and investment metrics.

Carmel wins 4–3 across key metrics
Bloomington leads on cash flow (4.18% vs 3.56% cap rate) · Carmel leads on population growth
Metric
Bloomington, IN
Carmel, IN
Est. Cap Rate
4.18%
3.56%
Median Home Price
$235,000
$395,000
Median Monthly Rent
$1,200
$1,780
1% Rule
0.51%
0.45%
GRM
16.3x
18.5x
Price / Income
6.1x
3.5x
Property Tax Rate
0.83%
0.82%
Vacancy Rate
5.2%
4.2%
Population Growth
0.8% / yr
1.8% / yr
Annual Appreciation
2.6%
3%
Population
87,000
105,000
Median Income
$38,400
$112,000

Bloomington vs Carmel: Which Is Better for Investors?

Cash flow: Bloomington has the edge with an estimated cap rate of 4.18% compared to Carmel's 3.56%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $235,000 in Bloomington vs $395,000 in Carmel, while rents come in at $1,200/mo and $1,780/mo respectively.

Growth & appreciation: Carmel is growing faster at 1.8% annually vs Bloomington's 0.8%. Carmel leads on home value appreciation at 3% per year. Strong population growth typically translates to sustained rental demand and long-term price support.

Costs & risk: Property taxes are 0.83% in Bloomington vs 0.82% in Carmel. Vacancy rates of 5.2% and 4.2% are both healthy, suggesting strong tenant demand in both markets.

Bottom line: Carmel edges out Bloomington on most key metrics. While cap rates are moderate at 3.56%, Carmel's overall profile is stronger. Use our free calculators to model specific deals in Bloomington or Carmel.

Bloomington, IN
4.18% cap rate · $235,000 median · $1,200/mo
Full analysis →
Carmel, IN
3.56% cap rate · $395,000 median · $1,780/mo
Full analysis →
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