Published market hub · September 2026
Indianapolis, IN: a typical house misses 1.20x; the lender's ratio passes under about $172,500, and a house cash flows under about $155,200
At typical rent ($1,500, across rentals of all kinds, apartments included, not a house rent), a house at the typical price ($230,020) comes in at 0.90x, short of the 1.20x cushion. At the typical price, a house needs about $1,999 a month in rent to clear 1.20x. At $1,500 a month, the lender's 1.20x ratio works up to about $172,500 (a $129,400 loan); positive cash flow after a 25% set-aside for vacancy, repairs and management needs about $155,200.
The numbers
DSCR is the monthly rent divided by the full monthly payment (principal, interest, taxes, insurance and any HOA dues). At 1.20x the rent is 20% more than the payment. We use 1.20x as a cushion; many DSCR lenders accept as low as 1.00x. A lender sizes the loan on the lease or the appraiser's estimate of market rent (Form 1007), often the lower of the two, not on a city figure.
Typical rent
$1,500/mo
A typical asking rent across rentals of all kinds, apartments included, not a house rent. This page has no 3-bedroom figure, so every ratio on this page uses this rent. A specific house can rent for more or less than this figure, so run the numbers on that house's own rent.
Max monthly payment
$1,250/mo
Typical rent ($1,500/mo) divided by 1.20 (a 1.20x DSCR). Taxes and insurance are included in this payment; budget vacancy and repairs on top. Check it against your own numbers.
Typical home value
$230,020
The typical home value for the city as a whole.
Rent-to-price
7.8%
A year of rent divided by the typical home value. Higher means the rent does more of the work.
A typical house
0.90x DSCR
A house at $230,020 renting for $1,500 a month falls short of 1.20x and loses about $541 a month after a 25% set-aside for vacancy, repairs and management. The lender's ratio works near $172,500 (25% lower); a house that rents for more, or a bigger down payment, also gets there.
Price that works
up to about $172,500
The most a house can cost at 1.20x if it rents for $1,500 a month. That clears the lender's ratio; to also cover a 25% set-aside for vacancy, repairs and management, the price needs to be near $155,200. At 1.00x, many lenders' floor, it is about $207,000, though lenders often charge more or lend less there. Every price here assumes the house rents for $1,500; check its own rent.
Assumptions for every price on this page: 25% down and a 7.5% 30-year rate. Property taxes about 1.8% and landlord insurance about 0.6% of the price a year, a rough estimate for Indianapolis-area rentals; Indiana caps property tax on rental homes at 2% of assessed value, which is not the purchase price. No HOA dues; add them if the house has them.
ZIP codes
Where to start
No ZIP code with both figures clears 1.20x at its median price.
| ZIP code | Median price | Median rent | Price that works | Verdict |
|---|---|---|---|---|
| 46221 | ~$220,000 | ~$1,560/mo | up to ~$179,400 | Median house misses 1.20x (0.98x); 1.20x needs a price about 18% under the median |
| 46203 Fountain Square | ~$224,950 | ~$1,707/mo | up to ~$196,400 | Median house clears 1.00x, not 1.20x (1.05x); 1.20x needs a price about 13% under the median |
| 46208 (home value estimate, asking rent) | ~$206,000 | ~$1,239/mo | up to ~$142,500 | Median house misses 1.20x (0.83x); 1.20x needs a price about 31% under the median |
Price that works: the most you could pay at 1.20x on that ZIP's median rent, on the assumptions above. A ZIP works when its median price is at or under that price and a 75% loan on it reaches the common $100,000 minimum; otherwise the verdict gives the ratio at the median price and what is missing. A ZIP with its figures named in brackets uses a different kind of price or rent from the rest of the table, so compare it with care. ZIP codes without both a median price and a median rent are not listed.
Monthly read · September 2026
What we would do this month
The short answer
Indianapolis is worth a targeted search, but typical rent does not carry a typical-priced house with the cushion we want. Buyer bargaining room may help bring the purchase price down. First, confirm the rent a lender can use and whether it covers the full monthly payment.
What to do next
- Buying: Look at lower-priced houses, duplexes, and small multifamily. Use a lease or an appraiser's estimate of market rent to test the full monthly payment. Consider price cuts and longer selling times when negotiating the purchase price.
- Holding: Keep vacancy, repairs, property taxes, and insurance in your monthly numbers. Recheck rent and payment when costs change.
Ask your lender how it will verify rent, count taxes and insurance in the payment, and calculate the loan for the specific property.
These are market numbers. A specific house needs its own rent, tax and insurance numbers, and the example deal is an illustration, not a loan quote.
When a specific house's rent covers its full payment with the 1.20x cushion, Sphinx Capital's loan application is the next step. Continue to application
Earlier monthly reads
Each used that month's numbers; the figures above are current.
- August 2026: Indianapolis has crossed the DSCR eligibility threshold, signaling a shift to 'selected' status. Investors should now focus on specific West-side ZIP codes and prioritize below-typical purchase price for viable acquisitions.
- May 2026: A first-pass DSCR check shows moderate upside capped at 5.9% max monthly payment, tight inventory, and high seller leverage. Focus on ZIPs 46231, 46234, 46235 for acquisition, watch 46239 and 46226, and keep monthly payment below $1,259/mo.
- February 2026: A quick check DSCR framework shows Indianapolis still offers upside in select ZIPs, but missing rent/value data demands a ZIP-level approach. Focus on 46208, watch 46227/46203/46220, and avoid 46201.
Buy, refinance, or hold
What to do if you are buying, refinancing, or holding
Buying
Look for houses priced under about $172,500 that rent for at least $1,500 a month, or houses that rent for more; a house at the typical price ($230,020) misses 1.20x at this rent. Target lower-priced houses, duplexes, and small multifamily where verified rent covers the full payment.
Refinancing
Check current rent, property value, taxes, insurance, and refinance costs before relying on cash-out proceeds; no city-level refinance terms are provided.
Holding
Keep vacancy, repairs, taxes, and insurance in the monthly numbers. Recheck the rent and payment if costs change.
Application next step
Found a property here that works on your numbers?
Continue into Sphinx Capital's loan application when the rent on a specific property covers its full monthly payment with the 1.20x cushion. DSCRInfo will carry this market context into the application start.
If you apply with Sphinx Capital from this page, DSCRInfo may receive referral compensation. See disclosures
Risks
What could make this market stop working
- Property taxes above expectations can push the payment beyond what rent supports.
- Older houses and small multifamily buildings may need repairs that weaken cash flow.
- Citywide rent may not match what a specific property can earn.
- Insurance and repairs can erase the payment cushion even after a lower purchase price.
Buying conditions
What else we see
- Buy only when verified property rent supports the full monthly payment at your chosen DSCR cushion.
About these numbers
How this page is built
Updated September 25, 2026. City rent and home value, ZIP code prices and rents, and listing activity come from public sources, including U.S. federal and government datasets and public property listings. They show whether a market is worth a look, not whether a specific house works.
Every county in Indiana, with rent, property tax, insurance, vacancy and jobs: Indiana rent, property tax and insurance by county.
Application next step
Ready to apply?
Apply with Sphinx Capital once the market numbers and your property's numbers agree.