Gary, IN — Rental Investment Analysis
🟢STRONG— excellent cash flow marketData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Gary, IN has a median cap rate of 13.6%, making it one of the top cash-flowing rental markets in the United States.
Gary is one of the strongest cash flow markets in the data. With a median home price of $91,197, entry costs are low — making it accessible for beginning investors or those buying multiple properties. With 3-bedroom rents around $1,390/month, the 13.6% cap rate tells the story. A typical rental here cash flows +$523/month after all expenses — strong passive income from day one.
The market passes the 1% rule (1.55%), which is increasingly rare and signals strong rent-to-price fundamentals. DSCR of 2.12 means the property's income comfortably covers debt service — DSCR loans should be easy to qualify for here.
Bottom line: Buy here if you want reliable monthly income. Gary is a cash flow market — don't expect rapid appreciation, but the checks come in every month.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
13.6%
Above average
Monthly Cash Flow
+$523
After all expenses
Price-to-Rent
5.4
Investor-friendly
DSCR
2.12
Passes lender test
Key Metrics
- Median Home Price
- $91,197
- Average Rent (3BR)
- $1,390/mo
- Price-to-Rent Ratio
- 5.4(good)
- 1% Rule
- 1.55%(passes)
- Cash-on-Cash Return
- 31.3%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 3.2%(-1.1% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- +0.4% YoY
Property Tax Rate
0.81%
of assessed value (IN avg)
Median Income
$61,944
household (IN avg)
Rent-to-Income
26.9%
Affordable
Section 8 Max Rent
$1,390/mo
3BR voucher payment
IN Investor Climate
Landlord Friendly
8/10
State Income Tax
Has state tax
Property Tax
0.81% effective
Population Trend
+0.4% (3yr)
Best Zip Codes in Gary for Investors
All Zip Codes in Gary
| Zip | Cap Rate | Cash Flow | Home Price | Rent (3BR) | DSCR |
|---|---|---|---|---|---|
| 46407 | 19.6% | +$667 | $60,433 | $1,310/mo | 3.07 |
| 46409 | 19.1% | +$831 | $78,605 | $1,660/mo | 2.99 |
| 46402 | 15.6% | +$541 | $70,529 | $1,240/mo | 2.44 |
| 46406 | 14.7% | +$571 | $82,041 | $1,370/mo | 2.31 |
| 46404 | 12.4% | +$505 | $100,354 | $1,440/mo | 1.94 |
| 46408 | 10.8% | +$406 | $111,379 | $1,410/mo | 1.68 |
| 46403 | 7.0% | +$75 | $153,191 | $1,350/mo | 1.09 |
| 46301 | 0.3% | -$3,412 | $677,815 | $1,410/mo | 0.05 |