9 Best Cities in Indiana for Real Estate Investment

These are the best cities in Indiana for real estate investment in 2025.

Learn where to buy the most profitable investment properties, short term rentals and flip homes.

Based on moving trends, population growth and local market trends.

Let’s get started.

1. Indianapolis

Indianapolis is home to a strong pharmaceutical and biotech sector anchored by Eli Lilly and Roche, directly fueling a 23% increase in life sciences employment since 2015. From 2010 to 2020, the metro area’s population rose by 12.4%, outpacing the average Midwest growth rate of 3.1% during the same period. Maintaining a steady pipeline of tenants for rental properties.

In 2022, the median home price hovered around $230,000, yet average rents exceeded $1,200 per month for a two-bedroom unit, Creating a rental yield often surpassing 7%. Property tax rates in Marion County remain below 1% of assessed value, boosting profitability for Indiana investors compared to nearby cities like Chicago or Columbus, where effective rates are closer to 2%.

Indianapolis consistently ranks among the top 15 U.S. cities for net inbound migration of young professionals. A major indicator of future buyer and tenant demand. Also, state policies such as the Indiana Economic Development Corporation’s incentives for new businesses and lenient landlord-tenant laws further enhance Indianapolis’s advantage over many other Midwest and Sun Belt markets.

2. Fort Wayne

Between 2010 and 2020, Fort Wayne’s population rose by more than 11%, surpassing neighboring cities like Toledo and Dayton. Reflecting a healthy influx of new residents seeking both job opportunities and lower living costs. The city’s strong healthcare sector, anchored by Parkview Health and Lutheran Health Network, has increased medical-related employment by over 28% since 2015, positioning Fort Wayne as a key Midwestern healthcare hub.

Median home prices still hover under $190,000, while annual appreciation has consistently ranged between 7% and 9% since 2020. Offering investors affordability and long-term equity growth. Average two-bedroom rents of roughly $950 per month equate to rental yields around 7–8%.

Lastly, the $440 million Electric Works redevelopment, projected to add thousands of tech and startup jobs, demonstrates Fort Wayne’s aggressive economic expansion strategy that positions it ahead of competing Midwestern cities.

3. Evansville

Evansville’s population grew by roughly 3.4% in the ten years from 2010-2020. Outpacing other similarly sized Midwestern cities that experienced stagnation or decline. Toyota Motor Manufacturing in nearby Princeton, along with Deaconess Health System, anchors the region’s economy, fueling a 15% increase in advanced manufacturing and healthcare jobs since 2017.

Median home prices remain below $160,000, yet property values have appreciated at an average rate of 6% per year since 2020, offering both affordability and steady equity gains. Rental yields consistently hover around 8%. Particularly in neighborhoods like Jacobsville. A streamlined local permitting process further bolster Evansville’s status as an investor-friendly market. Finally, large-scale revitalization projects, including the $66 million Stone Family Center for Health Sciences, added new employment opportunities that strengthen rental demand and position Evansville as a uniquely stable, high-return market in the region.

4. South Bend

During the same decade (2010 to 2020), South Bend’s population increased by roughly 2.3%, reversing decades of decline and reflecting a modest but steady renewal of the city’s permanent residents. Additionally, the University of Notre Dame, invested over $300 million annually in research and development. Drawing tech and other highly skilled industries to the region.

Median home prices remain under $150,000, with property values appreciating by an estimated 18% since 2018, offering both affordability and measurable upside. Rental yields of approximately 7% in neighborhoods like River Park and Near Northwest exceed returns in many comparable Midwestern cities.

Indiana’s 2% cap on property taxes for investment properties not only keeps costs predictable but also positions South Bend as a more landlord-friendly market than nearby Michigan or Ohio cities. Large-scale projects such as the Ignition Park tech hub and Howard Park revitalization show South Bend’s commitment to economic development.

5. Bloomington

According to the Census, Bloomington’s population grew by approximately 6.3% from 2010 to 2020. Outpacing other small Indiana cities like Terre Haute and Muncie, which saw more modest increases or declines. Anchored by Indiana University, which employs over 10,000 faculty and staff. Bloomington maintains year-round housing demand that keeps vacancy rates near 4%. Lower than the state average of 7%.

Campus properties can yield over 7% on rentals. Clearly higher than the 5–6% in comparable Midwest college towns. Despite this demand, the median home price remains at roughly $240,000, while property values have appreciated by an average of 5.5% per year since 2018.

Investor-friendly policies and ongoing development in the Trades District downtown and the recent expansion of IU Health facilities show Bloomington’s dedication to sustained economic growth.

6. Fishers

Fishers has seen a remarkable population surge of nearly 33% between 2010 and 2020, pushing it past 100,000 residents and outpacing most other Indiana suburbs. Its median household income of around $110,000. Nearly double Indiana’s average.

Spurring a sustainable housing market and attracting a steady stream of upscale development. Tech-oriented initiatives like Launch Fishers have hosted over 1,500 startups since 2015, positioning the city as an entrepreneurial hotspot rather than just a commuter suburb.

Pay attention to redevelopment zones, such as The Nickel Plate District. Coupled with a pro-business local government, makes Fishers one of the most investor-friendly suburbs in the Midwest.

7. Lafayette

For comparison, Lafayette’s population rose by nearly 7% from between 2010 and 2020. Local job growth is anchored by major employers like Caterpillar, Subaru of Indiana Automotive, and Wabash National. Collectively adding over 2,000 positions since 2018.

Housing remains affordable at a median price around $190,000, while property values have appreciated at an average rate of roughly 6% annually over the past five years. Rental yields often exceed 7% in neighborhoods such as Vinton and Columbian Park, surpassing returns found in many Midwestern metro areas.

Additionally, Purdue University’s Discovery Park District fuels high-tech innovation and diverse employment opportunities.

8. Westfield

Westfield is one of Indiana’s fastest-growing cities. The 400-acre Grand Park Sports Campus attracts more than 2.5 million visitors annually, driving significant job creation and spurring residential demand.

Median home values, nearing $365,000, have appreciated by roughly 30% since 2017, reflecting both strong buyer interest and promising equity growth. Rental yields in neighborhoods around US-31 and State Road 32 hover around 6–7%, outpacing other Hamilton County suburbs like Carmel or Noblesville.

Finally, sizable mixed-use developments, including the Westfield Washington Schools expansion and the Grand Junction Plaza project, show the cities commitment to continue its ongoing economic momentum.

9. Carmel

Carmel is one of Indiana’s most rapidly growing suburban markets. High median household incomes, exceeding $110,000, fuel sustained demand for both upscale and family-friendly housing.

Major employers like Allegion, KAR Global, and Delta Faucet have headquarters or significant operations in Carmel. Contributing to consistent job creation and attracting affluent professionals. Pay attention to newly redeveloped neighborhoods like Midtown or the Arts and Design District.

Ongoing infrastructure projects, including the addition of over 130 roundabouts and continued expansion of City Center, show Carmel’s commitment to long-term urban development.