Updated 2026 · Based on median market data for Indianapolis, IN
The median monthly rent in Indianapolis, IN is $1,280, translating to $15,360 in annual gross rental income per unit. The rent-to-price ratio is 0.54% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Indianapolis spend approximately 29% of the local median household income ($52,900) on rent. This is within the healthy 25-30% range, indicating rent is affordable relative to local incomes. There may be room for moderate rent increases, especially for updated or well-located units.
The vacancy rate in Indianapolis is 6.2%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 0.9% annually provides stable demand.
Indianapolis's GRM (price divided by annual rent) is 15.3x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $1,280/mo, a single-family rental in Indianapolis generates approximately $15,360 in gross annual income. After accounting for 6.2% vacancy ($952 lost), property taxes of $1,974, insurance (~$940), and maintenance (~$940), the estimated NOI is $10,554 per year, or $879/mo.