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Cap Rate Analysis: Lafayette, IN

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

Moderate — source deals carefully
Based on $195,000 median price and $1,080/mo median rent
Est. Cap Rate
4.61%
1% Rule
0.55%
Fails
GRM
15.0x
Price / Income
4.2x

Market Data

Median Home Price$195,000
Median Monthly Rent$1,080
Property Tax Rate0.85%
Population73,000
Population Growth0.6% / yr
Median Household Income$46,200
Vacancy Rate5.8%
Annual Appreciation2.4%

Cap Rate Calculator — Lafayette

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.85% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.82%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,444
net operating income
Gross Rent Multiplier
15.0x
High (>15)
1% Rule
0.55%
✗ Fails
Monthly Cash Flow
$620
before debt service
Annual Breakdown
Gross Rental Income$12,960
Less Vacancy−$752
Effective Income$12,208
Less Operating Expenses−$4,764
Net Operating Income$7,444

Cash-on-Cash Return — Lafayette

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

$
$48,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.20%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$54,600
$48,750 down + $5,850 closing
Monthly Mortgage
$953
on $146K loan
Monthly Cash Flow
$-327
after all expenses
Annual Cash Flow
$-3,929
before taxes
Cash Flow Breakdown
Monthly Rent$1,080
Less Expenses−$454
Less Mortgage−$953
Monthly Cash Flow$-327

Is Lafayette a Good Place to Invest in Rental Property?

Lafayette, IN has a population of 73,000 and has been growing at 0.6% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $195,000 paired with median rents of $1,080/mo produces an estimated cap rate of 4.61%.

Property taxes at 0.85% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.2x, homes cost about 4.2 times the local median income of $46,200. 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 2.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Lafayette presents moderate opportunities. Cap rates near 4.61% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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