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 investors among the 1,192 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.
Top 5 Indiana residential real estate markets
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | South Bend | 100 | 2.1 | 93.62% |
| 2 | Anderson | 95.4 | 2.1 | 111.49% |
| 3 | Fort Wayne | 93.5 | 3.0 | 73.83% |
| 4 | Logansport | 92.1 | 2.5 | 59.93% |
| 5 | Connersville | 91.5 | 2.7 | 68.55% |
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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
| Data point | Value | Rank in state (of 1,192 markets) |
|---|---|---|
| Zip code | 46613 | N/A |
| InvestScore | 100 | Highest |
| Typical property value | $91,303[1] | 11th lowest |
| Five-year appreciation | 93.62%[2] | 8th highest |
| Household income | $43,585[3] | 279th highest |
| Affordability ratio | 2.1 | 10th most affordable |
| Five-year population growth | 9.1%[4] | 48th highest |
| Unemployment rate | 6.1%[5] | 225th lowest |
| Property taxes | $746[6] | 21st lowest |
| Educational attainment | 13.4%[7] | 266th highest |
South Bend (zip code 46613) is the best residential real estate investment market in Indiana. It has the 8th highest property value appreciation among markets we evaluated, with a 93.62% appreciation of the typical property over the last five years.
South Bend is the 10th most affordable market among the 1,192 Indiana markets we evaluated, with an affordability ratio of 2.1.
2. Anderson
The 46016 zip code in Anderson is Indiana's second-best residential real estate investment market.
🔎 Key data about Anderson
| Data point | Value | Rank in state (of 1,192 markets) |
|---|---|---|
| Zip code | 46016 | N/A |
| InvestScore | 95.4 | 2nd highest |
| Typical property value | $69,853[8] | 6th lowest |
| Five-year appreciation | 111.49%[9] | 2nd highest |
| Household income | $33,720[10] | 292nd highest |
| Affordability ratio | 2.1 | 8th most affordable |
| Five-year population growth | 3.4%[11] | 123rd highest |
| Unemployment rate | 7.9%[12] | 264th lowest |
| Property taxes | $650[13] | 11th lowest |
| Educational attainment | 9.8%[14] | 288th highest |
The 46016 zip code in Anderson features a typical property value of $69,853, the 6th lowest in the state.
Property values have appreciated 111.49% over the past five years, the 2nd highest increase among evaluated markets in the state. Anderson homes have an affordability ratio of 2.1, the 8th most affordable in the state.
3. Fort Wayne
The 46808 zip code in Fort Wayne comes in at No. 3 in our ranking of residential real estate investment markets in Indiana.
🔎 Key data about Fort Wayne
| Data point | Value | Rank in state (of 1,192 markets) |
|---|---|---|
| Zip code | 46808 | N/A |
| InvestScore | 93.5 | 3rd highest |
| Typical property value | $155,290[15] | 54th lowest |
| Five-year appreciation | 73.83%[16] | 25th highest |
| Household income | $51,673[17] | 248th highest |
| Affordability ratio | 3.0 | 80th most affordable |
| Five-year population growth | 3.2%[18] | 129th highest |
| Unemployment rate | 3.8%[19] | 125th lowest |
| Property taxes | $802[20] | 35th lowest |
| Educational attainment | 20.2%[21] | 178th highest |
With a typical property value of $155,290, Fort Wayne's 46808 zip code features the 54th lowest property values in the state.
Fort Wayne homes have an affordability ratio of 3.0, the 80th most affordable among the markets we evaluated.
4. Logansport
The 46947 zip code in Logansport ranks No. 4 among Indiana's residential real estate investment markets.
🔎 Key data about Logansport
| Data point | Value | Rank in state (of 1,192 markets) |
|---|---|---|
| Zip code | 46947 | N/A |
| InvestScore | 92.1 | 4th highest |
| Typical property value | $138,131[22] | 33rd lowest |
| Five-year appreciation | 59.93%[23] | 77th highest |
| Household income | $54,617[24] | 77th highest |
| Affordability ratio | 2.5 | 25th most affordable |
| Five-year population growth | 2.0%[25] | 150th highest |
| Unemployment rate | 3.9%[26] | 133rd lowest |
| Property taxes | $815[27] | 41st lowest |
| Educational attainment | 15.2%[28] | 246th highest |
Property values in Logansport's 46947 zip code have seen the 77th highest increase among evaluated markets in the state, with an appreciation of 59.93% over the past five years.
Logansport's affordability ratio of 2.5 makes it the 25th most affordable among the 1,192 markets we evaluated.
5. Connersville
The 47331 zip code in Connersville rounds out our top five residential real estate investment markets in Indiana.
🔎 Key data about Connersville
| Data point | Value | Rank in state (of 1,192 markets) |
|---|---|---|
| Zip code | 47331 | N/A |
| InvestScore | 91.5 | 5th highest |
| Typical property value | $141,311[29] | 36th lowest |
| Five-year appreciation | 68.55%[30] | 33rd highest |
| Household income | $51,868[31] | 33rd highest |
| Affordability ratio | 2.7 | 45th most affordable |
| Five-year population growth | 0.2%[32] | 180th highest |
| Unemployment rate | 4.6%[33] | 170th lowest |
| Property taxes | $763[34] | 25th lowest |
| Educational attainment | 15.6%[35] | 242nd highest |
Property values in Connersville's 47331 zip code rose 68.55% over the last five years, ranking the city 33rd highest among evaluated markets in Indiana.
Connersville homes have an affordability ratio of 2.7, the 45th most affordable among the markets we evaluated.
How we rank residential real estate markets in Indiana
We evaluated 1,192 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. 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. We assign a weight of 20% to typical property values.
- 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. We assign a weight of 20% to property value appreciation.
- 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. We assign a weight of 10% to median household income. We assign a weight of 10% to median household income.
- 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. We assign a weight of 15% to the affordability ratio.
- 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. We assign a weight of 10% to population growth.
- 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. We assign a weight of 15% to unemployment rate.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
- 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. We assign a weight of 15% to educational attainment.
Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.
