DSCR Loans in Indiana
Last updated: May 2026
Indiana is one of the most DSCR-friendly states in the country thanks to constitutionally capped property taxes, low insurance costs, and strong landlord protections. Indianapolis alone has become a national magnet for out-of-state rental investors seeking cash-flowing single-family and small multifamily properties.
Property Tax
0.83%
State Income Tax
3.05% flat
Landlord Friendly
Very
Eviction Timeline
3-5 weeks
Property Taxes in Indiana
Indiana's constitution caps property taxes at 1% of assessed value for homesteads (2% for rentals, 3% for commercial). Marion County (Indianapolis) effective rates average about 1.02%, Hamilton County around 0.95%, and Allen County (Fort Wayne) near 0.87%. These caps give investors unusual predictability when underwriting long-term holds.
Insurance Costs
Typical investment property insurance in Indiana runs $1,300/yr. Indiana experiences occasional tornado and severe-storm activity, but premiums remain moderate compared to the deep tornado-alley states further west. Flood zones along the White River and Wabash River can require supplemental coverage.
Landlord-Tenant Laws
Indiana has no rent control and state law preempts municipalities from enacting it. Eviction procedures are straightforward: a landlord can file for possession as soon as a lease violation is uncured, and courts typically schedule hearings within two to three weeks. Security-deposit rules are minimal, with no cap on the amount a landlord may collect.
Top Investment Markets in Indiana
Indianapolis
The east and south sides offer SFRs in the $100K-$180K range with rents of $1,100-$1,500/mo, a sweet spot for DSCR lenders.
Fort Wayne
Indiana's second-largest city features median prices under $170K and a growing healthcare and defense employment base.
South Bend
Notre Dame proximity and downtown revitalization have pushed rents up while purchase prices remain below $130K.
Evansville
Tri-state metro with low vacancy rates and SFRs regularly priced under $120K make strong DSCR candidates.
Bloomington
Indiana University enrollment exceeding 45,000 creates consistent demand for rentals near campus.
DSCR Considerations in Indiana
Indiana's constitutional property-tax cap means your DSCR proforma is unlikely to suffer surprise tax hikes, which is a major underwriting advantage. Low entry prices paired with rents that have risen steadily since 2020 make 1.25+ DSCR ratios achievable across most metros. Many DSCR lenders consider Indiana a Tier 1 market for this reason.
Run the numbers for Indiana
Use our free DSCR calculator to see if your Indiana investment property pencils out.
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