Hammond, IN — Rental Investment Analysis
🟢GOOD— solid returnsData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Hammond, IN offers a 7.1% cap rate with median home prices of $168,350 and 3-bedroom rents of $1,555/month.
Hammond offers solid returns for rental investors. At $168,350 median home price, Hammond is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $1,555/month, the 7.1% cap rate tells the story. Expect around +$108/month cash flow after mortgage, taxes, insurance, and reserves.
The 1% rule comes in at 0.90% — doesn't quite pass, but close enough to find individual deals that work. DSCR of 1.12 is tight — you'll pass most lender minimums but with little margin for error.
Bottom line: Buy here if you want reliable monthly income. Hammond 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
7.1%
Above average
Monthly Cash Flow
+$108
After all expenses
Price-to-Rent
9.3
Investor-friendly
DSCR
1.12
Tight
Key Metrics
- Median Home Price
- $168,350
- Average Rent (3BR)
- $1,555/mo
- Price-to-Rent Ratio
- 9.3(good)
- 1% Rule
- 0.90%(fails — need 1%+)
- Cash-on-Cash Return
- 3.2%
- 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
30.1%
Moderate
Section 8 Max Rent
$1,555/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)