Best Neighborhoods to Invest in Indianapolis Real Estate

1. Broad Ripple

Broad Ripple is one of the most walkable neighborhoods in Indianapolis, making it highly desirable for young professionals and college students. It has a lively nightlife, local coffee shops, and unique restaurants that attract renters. Butler University is nearby, which generates a steady demand for off-campus housing, while tech startups and creative businesses in the area draw in young professionals.

Unlike downtown, Broad Ripple offers a neighborhood feel with tree-lined streets and riverfront parks, which appeals to long-term renters. Rental properties here fill up quickly because tenants want easy access to both entertainment and green spaces. Compared to areas like Fountain Square, Broad Ripple has more single-family homes and duplexes, making it easier to find affordable investment properties.

Home values are rising, but prices are still lower than in prime downtown locations, offering a good balance of affordability and future appreciation. The combination of high demand, affordability, and lifestyle perks makes Broad Ripple one of the best places to invest in Indianapolis real estate.

2. Fountain Square

Fountain Square is one of the fastest-growing neighborhoods in Indianapolis, making it a prime spot for real estate investment. It attracts creative professionals and young renters looking for a lively atmosphere. Many people are moving here from downtown because it offers a similar urban feel but with more affordable housing options.

The neighborhood’s recent rapid redevelopment has led to new restaurants, breweries, and music venues, increasing its appeal to tenants. Public transportation and bike-friendly streets make it easier for residents to get around without needing a car. Compared to Broad Ripple, Fountain Square has more modern apartments and renovated historic homes, making it attractive to different types of renters.

The demand for housing continues to grow as more businesses open, driving up rental prices and property values. With a mix of affordability, culture, and high rental demand, Fountain Square is one of the best places to invest in Indianapolis real estate.

3. Meridian-Kessler

Meridian-Kessler is one of most stable and desirable neighborhoods, making it a top choice for real estate investment in Indianapolis. It attracts families and professionals who want a quiet, tree-lined community with easy access to downtown. Many renters choose this area because of its top-rated schools, historic homes, and strong sense of community.

Unlike Broad Ripple or Fountain Square, Meridian-Kessler offers larger homes with more space, which appeals to long-term tenants. The housing market here is competitive but still more affordable than downtown, making it a great option for investors looking for appreciation. With many local shops, cafes, and parks nearby, tenants are willing to pay higher rents for the quality of life.

The demand for housing remains strong as more people move from crowded urban areas to neighborhoods with a suburban feel. Meridian-Kessler’s combination of high rental demand, steady property values, and excellent amenities makes it one of the best investment opportunities in Indianapolis.

4. Bates-Hendricks

Bates-Hendricks is one of the fastest-changing neighborhoods, making it a great place to invest in Indianapolis real estate. Many older homes have been renovated, attracting young professionals and first-time homebuyers looking for affordable housing near downtown. The neighborhood’s location just south of Fountain Square and downtown makes it easy for renters to commute while paying lower rent than in nearby areas.

New businesses, coffee shops, and restaurants are opening, making Bates-Hendricks more desirable for tenants who want a trendy community. Investors can find historic homes at lower prices, renovate them, and attract tenants looking for modern features in a growing area. With more people moving away from expensive downtown apartments, Bates-Hendricks offers a mix of affordability and convenience.

5. Irvington

Irvington is one of the most historic neighborhoods, attracting renters who love its charm and character. The area is known for beautiful trees, unique brick homes, and strong community vibe, making it especially popular with young families. Unlike downtown or Fountain Square, Irvington offers more space and a quieter atmosphere while still being just a short drive from the city center.

Many people are moving here because of the affordable home prices and the increasing number of shops, restaurants, and breweries opening in the area. The neighborhood’s high walkability and access to the Pennsy Trail make it ideal for tenants who enjoy an active lifestyle. Rental demand is strong since Irvington provides a balance of affordability and quality of life that is hard to find in other parts of the city.

6. Downtown Indianapolis

Downtown Indianapolis is the best place to invest because it has the highest demand for rentals, especially from young professionals, college students and families. The area is home to major employers, like Eli Lilly and Salesforce, which attract workers looking for nearby housing.

With sports stadiums, nightlife, and cultural attractions within walking distance, tenants are willing to pay a premium for convenience. While prices are higher than in neighborhoods like Bates-Hendricks or Irvington, investors can charge higher rents and find tenants quickly. As more people move to the city for jobs and entertainment, downtown properties will continue to grow in value, making it a smart long-term investment.

7. Speedway

Speedway is a great neighborhood because it is home to the famous Indianapolis Motor Speedway, which attracts thousands of visitors and seasonal workers every year. The area has seen major redevelopment, with new restaurants, breweries, and entertainment venues making it more appealing to long-term renters.

Unlike downtown, Speedway offers more affordable housing with lower property taxes, making it easier for new investors to enter the market. Many tenants will be drawn to the neighborhood’s small-town feel while still being just minutes from downtown Indianapolis. Rental demand stays high due to the steady influx of motorsports professionals, hospitality workers, and young families looking for affordable homes.

8. Fall Creek Place

Many young professionals and families are moving to Fall Creek Place for its renovated homes, safe streets, and easy access to downtown. It has a more perfect mix of single-family homes and townhouses, making it attractive to long-term renters.

The neighborhood has seen major investments in new parks, bike lanes, and local businesses, increasing its appeal. Housing prices are still more affordable than in downtown, but values are rising as demand grows.

9. Mapleton-Fall Creek

Mapleton-Fall Creek offers affordable historic homes in a rapidly improving area. Many renters are drawn to its large houses, which provide more space than apartments in downtown. The neighborhood is experiencing a wave of revitalization, with new businesses and restaurants, making it very attractive.

Unlike pricier areas like Meridian-Kessler, Mapleton-Fall Creek still has reasonably priced properties with strong potential for appreciation. Its location near major employers and universities generated a steady demand for rentals. As more people seek affordable housing close to downtown, investors in Mapleton-Fall Creek will have an easier time finding tenants and seeing long-term value growth.

10. Mars Hill

Mars Hill is one of the most affordable neighborhoods, making it a great option for investors looking for budget-friendly properties. The area attracts working-class families and long-term renters who want low housing costs while staying close to downtown employers. It offers single-family homes at some of the lowest prices in the city, allowing investors to generate strong cash flow.

The neighborhood has easy access to major highways and industrial employers, ensuring a steady demand for rental properties. As housing prices rise in other parts of Indianapolis, more people are moving to Mars Hill for its affordability.