South Bend is home to the best residential real estate investment market in Indiana.
The 46613 zip code in South Bend presents the greatest opportunity for the best real estate investments among the 3,832 individual real estate markets in Indiana we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
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Data sources
Most of the data in this article comes from the Zillow Home Value Index and the U.S. Census American Community Survey.
We update our data when the original sources update their data, usually monthly. Sometimes we'll update data more frequently.
Clever also performs regular quality checks to identify outdated data, broken data connections, and other data issues that may arise.
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5 best places to invest in Indiana
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | South Bend | 100 | 2.4 | 70% |
| 2 | Fort Wayne | 97.7 | 2.3 | 66% |
| 3 | Muncie | 95.5 | 2.1 | 56% |
| 4 | Winamac | 93.6 | 2.9 | 51% |
| 5 | Gary | 93.5 | 1.7 | 49% |
🚨 This article is for informational purposes only. It isn't intended to convey financial or legal advice. We recommend you talk to a real estate agent or real estate attorney when buying a home in Indiana.
1. South Bend
We've identified the 46613 zip code in South Bend as Indiana's best real estate investment market. Here's why.
🔎 Key data about South Bend (46613)
| Data point | Value | Rank in state (of 3,832 markets) |
|---|---|---|
| InvestScore | 100 | Highest |
| Typical property value | $103,658[1] | 12th lowest |
| Five-year appreciation | 70%[2] | 2nd highest |
| Household income | $42,537[3] | 279th highest |
| Affordability ratio | 2.4 | 19th most affordable |
| Five-year population growth | 4.7%[4] | 18th highest |
| Unemployment rate | 3.2%[5] | 10th lowest |
| Property taxes | $851[6] | 20th lowest |
| Educational attainment | 12%[7] | 199th highest |
South Bend (zip code 46613) is the best residential real estate investment market in Indiana. It has the 2nd highest property value appreciation among markets we evaluated, with a 70% appreciation of the typical property over the last five years.
South Bend is the 19th most affordable market among the 3,832 Indiana markets we evaluated, with an affordability ratio of 2.4.
2. Fort Wayne
The 46806 zip code in Fort Wayne is the runner-up spot for the best real estate investments in Indiana.
🔎 Key data about Fort Wayne (46806)
| Data point | Value | Rank in state (of 3,832 markets) |
|---|---|---|
| InvestScore | 97.7 | 2nd highest |
| Typical property value | $112,470[1] | 15th lowest |
| Five-year appreciation | 66%[2] | 3rd highest |
| Household income | $47,895[3] | 266th highest |
| Affordability ratio | 2.3 | 13th most affordable |
| Five-year population growth | 1.4%[4] | 90th highest |
| Unemployment rate | 2.5%[5] | 3rd lowest |
| Property taxes | $623[6] | 2nd lowest |
| Educational attainment | 8.5%[7] | 211th highest |
The 46806 zip code in Fort Wayne features a typical property value of $112,470, the 15th lowest in the state.
Property values have appreciated 66% over the past five years, the 3rd highest increase among evaluated markets in the state. Fort Wayne homes have an affordability ratio of 2.3, the 13th most affordable in the state.
3. Muncie
The 47302 zip code in Muncie comes in at No. 3 in our ranking of the best residential real estate investment markets in Indiana.
🔎 Key data about Muncie (47302)
| Data point | Value | Rank in state (of 3,832 markets) |
|---|---|---|
| InvestScore | 95.5 | 3rd highest |
| Typical property value | $99,860[1] | 10th lowest |
| Five-year appreciation | 56%[2] | 9th highest |
| Household income | $47,837[3] | 267th highest |
| Affordability ratio | 2.1 | 4th most affordable |
| Five-year population growth | 0.4%[4] | 140th highest |
| Unemployment rate | 3%[5] | 8th lowest |
| Property taxes | $646[6] | 3rd lowest |
| Educational attainment | 12%[7] | 198th highest |
With a typical property value of $99,860, Muncie's 47302 zip code features the 10th lowest property values in the state.
Muncie homes have an affordability ratio of 2.1, the 4th most affordable among the markets we evaluated.
4. Winamac
The 46996 zip code in Winamac ranks No. 4 among Indiana's residential real estate investment markets.
🔎 Key data about Winamac (46996)
| Data point | Value | Rank in state (of 3,832 markets) |
|---|---|---|
| InvestScore | 93.6 | 4th highest |
| Typical property value | $183,338[1] | 75th lowest |
| Five-year appreciation | 51%[2] | 19th highest |
| Household income | $64,167[3] | 19th highest |
| Affordability ratio | 2.9 | 58th most affordable |
| Five-year population growth | 3.4%[4] | 37th highest |
| Unemployment rate | 2.5%[5] | 4th lowest |
| Property taxes | $676[6] | 9th lowest |
| Educational attainment | 18%[7] | 162nd highest |
Property values in Winamac's 46996 zip code have seen the 19th highest increase among evaluated markets in the state, with an appreciation of 51% over the past five years.
Winamac's affordability ratio of 2.9 makes it the 58th most affordable among the 3,832 markets we evaluated.
5. Gary
The 46409 zip code in Gary rounds out our top five residential real estate investment markets in Indiana.
🔎 Key data about Gary (46409)
| Data point | Value | Rank in state (of 3,832 markets) |
|---|---|---|
| InvestScore | 93.5 | 5th highest |
| Typical property value | $77,728[1] | 4th lowest |
| Five-year appreciation | 49%[2] | 33rd highest |
| Household income | $44,667[3] | 33rd highest |
| Affordability ratio | 1.7 | most affordable |
| Five-year population growth | 1.6%[4] | 82nd highest |
| Unemployment rate | 4.5%[5] | 13th lowest |
| Property taxes | $980[6] | 46th lowest |
| Educational attainment | 11%[7] | 202nd highest |
Property values in Gary's 46409 zip code rose 49% over the last five years, ranking the city 33rd highest among evaluated markets in Indiana.
Gary homes have an affordability ratio of 1.7, the most affordable among the markets we evaluated.
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Frequently asked questions
See our article Steps to Buying Your First Rental Property to learn the basics of real estate investing for beginners.
You'll learn the importance of setting goals, picking the right market, and more.
Cash investors often use what's called the 70% rule, which suggests they should pay around 70% of a house's after-repair value minus the cost of renovations.
By buying for about 70% of the after-repair value, they're positioning themselves to pay for repairs and other costs, and to lock in a profit.
The 70% rule isn’t a hard-and-fast formula, but a quick guideline investors use to evaluate potential deals.
Investing in residential real estate can be one of the best passive real estate investments in Indiana.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Indiana
To determine the best real estate investments in Indiana we evaluated 3,832 markets on eight metrics, and then assigned an InvestScore based on a proprietary weighting framework. Each market corresponds to a specific zip code in Indiana.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes.
