Why Fountain Square Is a Goldmine for House Hacking

If you’ve been eyeing real estate investing in Indy, you’ve probably heard about house hacking—buying a home, living in part of it, and renting the rest to cover your mortgage. When it comes to house hacking opportunities, few spots in the city shine like Fountain Square, Indianapolis.

This neighborhood has exploded in popularity over the last decade. Once known for its quirky art scene and vintage charm, it’s now a thriving hub where trendy restaurants, craft breweries, and historic homes collide. Investors love it because:

• Rental demand is strong. Proximity to downtown keeps young professionals and students looking for apartments.

• Home values are rising. As of mid-2025, the median home price in Fountain Square is around $285,000, up nearly 5% from last year (MIBOR data).

• Walkability = higher rents. Renters are willing to pay more for a lifestyle neighborhood.

For a first-time investor, this makes Fountain Square the perfect mix of affordable entry prices and strong rental potential.

What Is House Hacking, Exactly?

House hacking is basically using your property to cover (or even profit from) your housing expenses. In Fountain Square, that might look like:

1. Buying a duplex. Live in one side, rent the other.

2. Purchasing a single-family home with a basement or garage apartment. Rent out the extra space.

3. Room-by-room rentals. If you buy a bigger house, you can rent out bedrooms individually.

Think of it as a “training wheels” approach to real estate investing. You’re not going all-in on an investment property right away—you’re buying a place to live that also generates income.

How Much Can You Make House Hacking in Fountain Square?

Let’s break down a simple example.

• Duplex in Fountain Square: Purchase price = $300,000

• Mortgage (FHA, 3.5% down, 6.8% interest rate) ≈ $2,100/month

• Rent from one side = $1,250/month

• Your net housing cost = ~$850/month

That’s less than half the cost of renting a decent one-bedroom in Indy right now. And if you rented out a spare room in your unit, you could be living nearly mortgage-free.

Financing Options for First-Time House Hackers

If you’re new to investing, the financing side can feel overwhelming. Luckily, there are programs that make house hacking more accessible:

• FHA Loans (3.5% down): Perfect for first-timers. You can use an FHA loan to buy up to a 4-unit property.

• Conventional Loans (5% down): Slightly stricter credit requirements but more flexibility long term.

• First-Time Buyer Programs: Indiana Housing and Community Development Authority (IHCDA) offers down payment assistance for qualifying buyers.

If you’re Googling things like house loans for first-time buyers or house programs for first-time buyers, these are the ones you’ll want to explore first.

Tips for Successful House Hacking in Fountain Square

1. Target Walkable Locations

Tenants in Fountain Square pay a premium to be near Fountain Square Theatre, Milktooth, and all the nightlife. A property closer to these hot spots will rent faster and for more money.

2. Don’t Over-Renovate

It’s easy to get carried away with HGTV-style remodels, but renters won’t pay enough extra rent to justify $20k of designer finishes. Focus on clean, functional, and durable upgrades.

3. Run the Numbers First

Don’t assume every house for sale near me is a good deal. Calculate:

• Expected rent (check Zillow, Apartments.com, and local Roots Realty comps).

• Mortgage + insurance + taxes.

• Maintenance reserves.

If the rent from one unit (or a couple of rooms) covers at least 70% of your mortgage, you’re in strong house hack territory.

4. Consider Short-Term Rentals (Cautiously)

Airbnb can supercharge your returns, but Indy has zoning rules to navigate. If you’re thinking about it, talk with an agent who knows the local regulations before you dive in.

Why Fountain Square Over Other Indy Neighborhoods?

We’ve broken down some of Indy’s hottest neighborhoods for investing in our guide: Indianapolis Neighborhood Guide for Real Estate Investors: Where to Buy in 2025. Fountain Square makes the cut because:

• It attracts younger renters who prefer urban living.

• It’s still more affordable than Broad Ripple or downtown condos.

• There’s upside potential—values continue to rise as development spreads south and east.

For investors thinking long term, this means you’re building equity while cash flowing today.

Q&A: House Hacking in Fountain Square

Is Fountain Square safe for investors?

Like many urban neighborhoods, Fountain Square has pockets that are more desirable than others. The closer you are to the heart of the square, the stronger the rental demand.

Can I use house hacking as a first-time buyer?

Absolutely. FHA loans allow you to buy a duplex, triplex, or even fourplex as long as you live in one unit.

How much do duplexes cost in Fountain Square?

As of late 2025, most duplexes in Fountain Square range from $275,000–$350,000, depending on condition and location.

What if I want to scale beyond house hacking?

Many investors start with a house hack, then transition to BRRRR or multifamily deals. Check out our guide on BRRRR in Indianapolis for next steps.

Wrapping It Up

House hacking in Fountain Square, Indianapolis, is one of the best ways for first-time investors to break into the market. You get to live in a vibrant neighborhood, offset your housing costs, and build equity—all in one move.

If you’re ready to explore this strategy, Roots Realty Co. can help you run the numbers, find the right property, and connect you with financing options.

👉 Check out our Investor Resources to start your journey.

Ready to house hack in Fountain Square? Reach out to Roots Realty Co., and let’s find the perfect property together.