If you’ve ever stared at a “great deal!!” listing and thought, “Okay… but what numbers actually matter?” — welcome to the club.

Indy is still a cash-flow-friendly market, but 2026 is not the year to buy purely on vibes. You want a small set of real estate investing metrics Indianapolis investors can track consistently—so you can compare deals apples-to-apples, spot risks early, and avoid the classic “it penciled… until it didn’t” situation.

For quick context: Indianapolis’ median sale price was about $250,000 in December 2025, and homes averaged ~37 days on market. That pace matters because it influences your buying leverage and your exit plan.

Let’s break down the top metrics to track this year—and how to use them like a practical Indy investor (not a spreadsheet gremlin).

The “big 5” market metrics to watch in Indianapolis this year

These tell you what the market is doing—so you don’t underwrite a deal in a vacuum.

1) Days on Market (DOM)

DOM is basically your temperature check on competition and buyer demand.

• Lower DOM = hotter market, less negotiating power

• Higher DOM = more room to ask for credits, price cuts, seller-paid closing costs

As mentioned above, Indy was around 37 DOM in Dec 2025 (citywide).
Use this as a baseline—and then compare by neighborhood and property type (duplex vs SFR vs condo).

2) Median sale price and price trend

This affects your entry point and your refinance/exits.

Redfin pegged Indy’s median sale price at ~$250K in December 2025 (+4.2% YoY).
That doesn’t mean every neighborhood is up the same—so track your submarket (Near Eastside, Pike Township, etc.) separately.

3) Rent level and rent growth

Your cash flow lives here, so don’t wing it.

A local data point worth knowing: a WFYI report (Nov 2025) cited market-rate metro rent rising from about $899 to ~$1,339 over the past 10 years.
That doesn’t equal your exact rent today for your exact property—but it’s a useful macro signal: Indy rent has had a steady upward drift.

If you want an easy “sanity check” number for underwriting, Apartment List pegged median overall rent in Indianapolis at ~$1,252 as of Aug 2025.

4) Vacancy and turnover (aka “how fast can you fill it?”)

Even a great rent number fails if your place sits empty.

What to track:

• Vacancy rate for your neighborhood/property class (even if you estimate it from your PM’s portfolio)

• Days-to-lease (how many days you sit vacant between tenants)

• Annual turnover (how often tenants move out)

In practice: if your underwriting assumes 0% vacancy because “Indy is strong,” you’re just borrowing trouble.

5) Absorption (for investors who care about supply)

Absorption is “how quickly supply gets eaten.” More relevant for flips/new builds and certain neighborhoods with lots of similar inventory.

You can approximate it simply:

• Absorption rate = homes sold / homes for sale (in a given time period)

If you’re buying in an area with lots of similar renovated listings, absorption tells you whether you’ll be the only shiny flip… or one of twelve.

The deal-level metrics that actually decide if you buy

These are the numbers that separate “cool property” from “good investment.”

1) Cap rate (but use it correctly)

Cap rate = NOI ÷ Purchase Price
NOI is income minus operating expenses (not your mortgage).

Cap rate is great for comparing:

• Similar rentals in the same area

• Multifamily properties

• “Is this priced like an investment, or priced like a HGTV dream?”

Cap rate is less helpful when:

• You’re using leverage and care about cash flow

• You’re comparing a turnkey rental vs value-add rehab

Pro tip: Don’t “force” a cap rate by pretending expenses are lower than reality. That’s how people buy stress.

2) Cash-on-cash return (the real-world cash flow metric)

Cash-on-cash = Annual cash flow ÷ Cash invested

Cash invested includes:

• Down payment

• Closing costs

• Rehab (if any)

• Initial reserves

If you’re putting $35K into a deal and netting $3,500/year after all expenses and debt… that’s 10% cash-on-cash. Simple.

Want a step-by-step cash flow walkthrough? Pair this with:
https://rootsrealty.co/blog/analyze-cash-flow-indianapolis-rentals-2026

3) Debt coverage ratio (DSCR)

DSCR = NOI ÷ Annual debt service

Many lenders like DSCR because it answers one question:
“Does the property pay for itself?”

• 1.00 = break-even

• 1.15–1.25+ = more comfortable (varies by lender and asset type)

If your DSCR is tight, you’re one repair, tax bump, or vacancy away from feeding the property every month.

4) Expense ratio (and why new investors under-estimate it)

Expense ratio = Operating expenses ÷ Gross rent

In the real world, this catches:

• Taxes

• Insurance (which has been a moving target lately)

• Repairs and maintenance

• Property management

• Utilities you pay

• Lawn/snow, pest, etc.

If you’re underwriting a “clean” rental and your expense ratio is magically 15%, double-check what you forgot.

5) Rent-to-price and “rent comps confidence”

Rent-to-price is a quick sniff test:

• Monthly rent ÷ Purchase price

It’s not a “buy/no-buy” metric, but it helps you avoid overpaying.

Then comes the real question: How confident are you in your rent comps?
Track it like a score:

• 3+ strong comps within 0.5–1 mile (or same pocket)

• Similar beds/baths, finish level, parking

• Recently leased (not “currently listed at”)

The hidden metrics that protect your downside

These don’t get the glory, but they keep you solvent.

Maintenance burden score (your personal “headache index”)

Track:

• Age of roof/HVAC/water heater

• Sewer line risk (older Indy homes can surprise you)

• Foundation/basement water history

Turn it into a simple 1–5 score. If a property is a “5” on maintenance risk, your reserves and returns need to reflect that.

Reserve coverage

Ask yourself: “If the property is vacant for 60–90 days, am I okay?”

A practical reserve target many investors use:

• 3–6 months of total property expenses (PITI + utilities + basic ops)

Tenant quality signals (without being weird about it)

Good investing is boring. Boring usually means stable tenants.

Track:

• Applicant volume (if your PM has it)

• Days-to-lease

• Late pay frequency (portfolio-level)

• Renewal rate

A simple Indy investor scorecard you can reuse on every deal

Here’s an easy way to keep your analysis consistent:

Step-by-step deal scorecard

1. Market check: DOM, price trend, rent trend

2. Income check: conservative rent, realistic other income

3. Expense check: taxes/insurance/PM/repairs/vacancy

4. Return check: cash-on-cash + DSCR

5. Risk check: maintenance score + reserves + exit options

If a deal fails one area, you don’t automatically kill it—you just price the risk appropriately.

For broader 2026 market context, these Roots reads pair well with this metrics list:

• https://rootsrealty.co/blog/indianapolis-real-estate-investing-outlook-2026

• https://rootsrealty.co/blog/2026-indianapolis-real-estate-forecast-investors

What metric matters most right now in 2026?

In a word: margin.

When uncertainty rises (rates, insurance costs, rehab pricing), the winning investors are the ones who:

• Underwrite conservatively

• Keep reserves

• Don’t stretch for “perfect” appreciation assumptions

This is why we like this Roots episode as a mindset check—especially if you’re scaling or buying your first few doors:
https://rootsrealty.co/podcast/the-hardest-lessons-in-real-estate-investing-that-save

Q&A: real search questions Indy investors ask

What are the most important real estate investing metrics Indianapolis investors should track?

Start with cash-on-cash return, DSCR, cap rate (for comparisons), vacancy/turnover, and neighborhood DOM. Track the same set every deal.

What’s the average home price in Indianapolis right now?

As of December 2025, Indianapolis’ median sale price was about $250,000.

What’s a realistic rent benchmark for Indianapolis?

One benchmark: Apartment List put median overall rent around $1,252 in Aug 2025.
Use comps for the exact neighborhood and finish level, but benchmarks help you sanity-check.

Why does days on market matter to investors?

DOM impacts your purchase leverage (negotiation power) and your exit (how quickly you can sell or refi). Indy averaged about 37 DOM in Dec 2025.

Should I prioritize cap rate or cash-on-cash?

If you’re using a mortgage (most people are), cash-on-cash + DSCR usually tell the real story. Cap rate is still useful for comparing similar properties, especially small multifamily.

Conclusion: track fewer metrics—track them consistently

You don’t need 47 tabs and a 12-sheet spreadsheet. You need a tight dashboard:

• Market: DOM, price trend, rent trend

• Deal: cash-on-cash, DSCR, cap rate (comparison), expense ratio

• Risk: vacancy/turnover, maintenance score, reserves

If you want help building a buy box, underwriting a deal, or figuring out which Indy neighborhoods fit your goals, grab the investor hub here:
https://rootsrealty.co/invest

Ready to explore Indy’s real estate opportunities? Reach out to Roots Realty Co. and let’s start your journey.