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Cap Rate Analysis: Evansville, IN

Investment metrics, interactive calculators, and data-driven analysis for Evansville rental properties.

Moderate — source deals carefully
Based on $155,000 median price and $950/mo median rent
Est. Cap Rate
5.26%
1% Rule
0.61%
Fails
GRM
13.6x
Price / Income
3.5x

Market Data

Median Home Price$155,000
Median Monthly Rent$950
Property Tax Rate0.82%
Population117,429
Population Growth0.2% / yr
Median Household Income$44,200
Vacancy Rate6.5%
Annual Appreciation2.2%

Cap Rate Calculator — Evansville

Pre-filled with Evansville medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.82% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.33%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,711
net operating income
Gross Rent Multiplier
13.6x
Good (<15)
1% Rule
0.61%
✗ Fails
Monthly Cash Flow
$559
before debt service
Annual Breakdown
Gross Rental Income$11,400
Less Vacancy−$741
Effective Income$10,659
Less Operating Expenses−$3,948
Net Operating Income$6,711

Cash-on-Cash Return — Evansville

Factor in financing to see your actual return on invested capital in Evansville.

$
$38,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.72%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$43,400
$38,750 down + $4,650 closing
Monthly Mortgage
$758
on $116K loan
Monthly Cash Flow
$-207
after all expenses
Annual Cash Flow
$-2,482
before taxes
Cash Flow Breakdown
Monthly Rent$950
Less Expenses−$399
Less Mortgage−$758
Monthly Cash Flow$-207

Is Evansville a Good Place to Invest in Rental Property?

Evansville, IN has a population of 117,429 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $155,000 paired with median rents of $950/mo produces an estimated cap rate of 5.26%.

Property taxes at 0.82% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 3.5x, homes cost about 3.5 times the local median income of $44,200. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Evansville presents moderate opportunities. Cap rates near 5.26% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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