In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in Indiana. Three towns made our list: Gary, Anderson, and Fort Wayne. We curated data from studies on the best places to buy an investment property, median listing price, and proprietary TurboTenant data. The TurboTenant Data includes stats on the average number of leads a rental property received, as well as the average number of days on the market. These two points will help an investor determine the strength of the rental market, as well as estimating potential vacancy rates.
Indiana is known for its collegiate and professional sports teams. The Hoosier State is home to the Indiana Hoosiers, the Notre Dame Fighting Irish, Purdue Boilermakers, and the Ball State Cardinals, just to name a few NCAA division teams. On the professional front, you have the Indianapolis Colts and the Indiana Pacers. If the speedway is where you would rather be, no worries the Indianapolis 500 is hosted every Memorial Day at the Indianapolis Speedway. While the origin of “Hoosier” might be up for debate, investing in IN is not. Some of our cities have seen a significant drop in home values, and with rents still fairly strong, yet in an affordable range, a positive ROI is indicated.
Let’s take a look at the best places to buy a rental investment property in Indiana.
#3: Gary, IN
Gary is located 25 miles from downtown Chicago, is adjacent to Dunes National Park, and borders Lake Michigan to the south. It was once the second-largest city in Indiana but currently holds the 9th position. Gary suffered a drastic population loss in the late 1960s due to the once-booming steel industry decline. Gary prides itself on stimulating economic growth with over 100 million dollars in non-governmental investment over the past few years. With close proximity to Chicago, you can see the skyline twinkle across Lake Michigan, and dedicated local leaders, Gary might be a long term investment, however rents are strong enough to cover the mortgage on the $40k median listing price, and leads are strong as well. Landlords are getting 57 leads per property, with just 16 days on the market. As the song goes, “there is just one place that can light up our face. Gary, Indiana.”
- Population growth:-1.6%
- Employment growth: 0%
- Increase in home values: -28.2%
Median Listing Price: $42k
Average Rent: $766
Average Number of Leads per Property: 57
Number of days on the rental market: 16
#2: Anderson, IN
Anderson is located just 34 miles northeast of Indianapolis. The town of Anderson takes great pride in its art and music culture. Each month at the Burdock House located in its quaint downtown, concerts are hosted. The Anderson Ballet Theater and the Anderson Mainstage Theatre also contribute to the art and culture scene with multiple productions per year. In the mood for some outdoor activity? Mounds State Park has ten unique earthworks dating back to prehistoric Indian cultures. The affordable housing trend continues in Anderson with the median listing price at 80k and the average rent coming in at $624. Landlords are not short on leads with the average per property the highest on our list at 58 with just 12 days on the market. Home values have increased 8.3% year over year, while population and employment growth have seen no increase or a slight decrease.
- Population growth: 0.0%
- Employment growth: -.3%
- Increase in home values: 8.3%
Median Listing Price: $80k
Average Rent: $624
Average Number of Leads per Property: 58
Number of days on the rental market: 12
#1: Fort Wayne, IN
Fort Wayne is the second-most populous city in Indiana after Indianapolis. It is located in the northeastern portion of the state and sits just 18 miles from the border of Ohio and 50 miles south of Michigan. Fort Wayne has it all, sports, music, and great food. Looking to explore your family history? Look no further, Fort Wayne is home to the nation’s largest public genealogy collection. It’s also home to very affordable housing. The median listing price is just 139k and with the average rent at $756, there will be no trouble covering the mortgage. You won’t have trouble finding a renter either. Landlords are getting around 23 lead on average per property with just 12 days on the market. Home values have increased 7.6% year over year, and are predicted to continue in that direction. Both population growth and employment growth is on the rise as well at 1.3% and 1.8% respectively.
- Population growth: 1.3%
- Employment growth: 1.8%
- Increase in home values: 7.6%
Median Listing Price: $139k
Average Rent: $766
Average Number of Leads per Property: 23
Number of days on the rental market: 12
Once you’ve landed the perfect investment property in a good location, TurboTenant can help take your landlording into the digital world by streamlining the rental process with easy and free online rental applications as well as thorough tenant screening so you can find the best renter for your property.
About the TurboTenant Report
The TurboTenant Report analyzes data from active listings across all 50 states, as well as third party real estate, population and employment growth data. Our goal with the TurboReport is to empower seasoned and novice investors to make wise purchasing decisions when purchasing a rental investment property. For more information or custom data requests, please contact [email protected].
In order to determine the best cities to invest in each state, we curated data from a number of reputable sources as well as using TurboTenant proprietary data. Our main city selections were taken from a study that evaluated four main factors for each city: employment growth, population growth, increase in home values and rental yield. We combined that with TurboTenant data on the average rent price, the number of rental leads per property, as well as the average number of days the rental stays on the market.
We also included an honorable mention where applicable. They are pulled from this study on the best places to invest in every state. These were determined using Zillow’s Buyer-Seller Index and Zillow Home Value Forecast, and AreaVibes’ Livability Score. Other methods for determining honorable mentions include using TurboTenant proprietary data to determine which cities return the best rental investment R.O.I. using data points including days on market, the number of leads per property, and average rent price.
DISCLAIMER: TurboTenant, Inc does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state and federal laws and consult legal counsel should questions arise.
- TurboTenant Rental Data
- Fastest Growing States Population
- The Best and Worst Cities to Own Investment Property
- Real Estate data provided by Redfin, a national real estate brokerage.