Tippecanoe County

Tippecanoe County sits at a gross rent-to-price ratio of 6.07%, which places it closer to the cash-flow end of the spectrum than pure appreciation plays, but not cleanly in either camp. The 3.95% cap rate tells the more honest story: at a $296,588 purchase price with a 6.85% mortgage, the math on a leveraged buy is negative from day one. The model spits out -$579 monthly cash flow and a -10.19% cash-on-cash return at 20% down, meaning you are writing a check every month to own this asset. Year-over-year home price appreciation came in at 2.41%, which barely outpaces inflation and does not rescue the carry deficit on its own. The affordability index of 66 and an overall score of 63 out of 100 (62nd national percentile) describe a market that is accessible but not cheap, priced above where pure cash-flow buyers want to be yet not appreciating fast enough to attract growth-chaser capital. The appreciation score of 74 is the one number that stands out in Tippecanoe's favor, suggesting the market has more upward price momentum than the other scores reflect.

The investor this market suits best is someone buying for long-run appreciation and tenant stability rather than immediate income. The appreciation score of 74 is the highest individual score in the dataset, and it is the clearest reason to underwrite here. A cash-flow buyer needs to find acquisition prices meaningfully below the $296,588 median, likely in the $230,000-$250,000 range, to get cap rates into the 5-6% zone where leveraged returns turn positive at current rates. A value-add operator who can force appreciation through rehab, or who buys off-market at a discount, has a path, but the vanilla buy-at-median strategy does not pencil at 6.85%. The stability score of 50 is the lowest number on the scorecard and deserves attention: it signals this market carries more demand volatility than a pure gateway city, which matters when you are already running negative cash flow and need occupancy to hold.

The economic case for Tippecanoe rests on a short list of large, durable employers that collectively span multiple demand pools. Purdue University, with roughly 50,000 students and faculty in West Lafayette, is the single most important factor in this market. University-anchored rental demand is structurally different from purely job-driven demand: it refreshes annually, it is relatively recession-resistant, and it creates a perpetual population of cost-conscious renters who prioritize proximity over square footage. Subaru of Indiana Automotive, Caterpillar's large engine plant, and Wabash National add a manufacturing-sector layer that diversifies beyond the university. IU Health Arnett represents the healthcare anchor that most mid-size Indiana markets rely on for wage-stable employment. The Discovery Park District, Purdue's research and innovation corridor, is a longer-dated growth catalyst that could accelerate both job formation and home price appreciation over a five-to-ten year hold. Taken together, this is not a single-employer market, and that diversification matters for anyone running a ten-year discounted cash flow model.

On carry costs, the state-average effective property tax rate is 0.85%, which the Tax Foundation data flags as normal, and it shows up as $2,521 annually, or $210 per month. Combined with $830 in annual insurance ($69/month), the total tax-and-insurance load is $279 per month. That is a manageable number relative to other states, and it is not the reason this market does not cash-flow. The problem is the mortgage: at 6.85% on a $237,270 loan (80% of purchase), the $1,555 monthly payment is the dominant cost, and the 3.95% cap rate simply cannot service that debt at scale. Keep in mind the 0.85% figure is a state-average estimate and actual rates at the county and township level can differ, so pull the Tippecanoe County assessor data before finalizing your underwrite.

The comparison to neighboring counties clarifies where Tippecanoe sits competitively. Johnson County ($305,370 median, 6.39% rent-to-price) and Hancock County ($321,689 median, 6.26% rent-to-price) both beat Tippecanoe on the rent-to-price ratio while carrying higher price tags, and both score 63-64 overall, essentially identical. Allen County ($244,080 median, 5.72% rent-to-price) is cheaper but produces a worse rent ratio, and Montgomery County ($224,004 median, 5.42% rent-to-price) is the most affordable option in this peer group but has the weakest rent ratio of all five neighbors. Floyd County ($277,337 median, 5.38% rent-to-price) trails on both metrics. Tippecanoe's 6.07% rent-to-price ratio is the second-best in this peer group, trailing only Johnson County. The reason to choose Tippecanoe over its neighbors is the university anchor: Purdue creates a demand floor that no employer in Allen, Montgomery, Floyd, Johnson, or Hancock County can fully replicate. If you are building a portfolio of student-adjacent or workforce rentals and want a structural tenant pipeline, Tippecanoe justifies a small premium over the cheaper alternatives. If your priority is the lowest entry price with reasonable rents, Montgomery County or Allen County gets you there, but you are buying into markets without a comparable demand anchor.