1st Advantage MortgageInvestors buying in Bloomington, IN are measured on the rent the property earns. Locally, median gross rent is $1,200 and median real estate taxes are $2,602 a year, which together set how much loan a rent can carry.
Bloomington rents, values and tenants
Median gross rent in Bloomington: $1,200, about 13% above the Indiana median of $1,062. Median owner-occupied home value: $321,400, well above the Indiana median of $218,200. Those are citywide medians, so an individual address can sit well on either side of them. Dividing a year of median rent by the median home value gives a gross rent-to-value ratio of 4.5%, on the low side, so the payment, not the rent, usually decides whether a file clears. It mixes apartments and houses, so treat it as a compass and not as the number for any one property.
| Indicator | Indiana | Bloomington | Difference |
|---|---|---|---|
| Persons per household | 2.46 | 1.91 | |
| Share in 2-4 unit buildings | 6.0% | 9.9% | +64% |
| Share of homes detached | 72.6% | 35.8% | -51% |
| Long commuters, 45 min plus | 12.7% | 5.9% | -54% |
| Degree holders, age 25+ | 29.5% | 58.8% | +100% |
| Workers on their own account | 8.0% | 7.1% | -11% |
| Renters paying 30%+ of income | 48.1% | 64.4% | +34% |
| Units sitting vacant | 8.8% | 10.1% | +16% |
| Typical construction year | 1976 | 1985 | |
| Annual rent divided by value | 5.8% | 4.5% | -23% |
| Households that rent | 29.4% | 65.3% | +122% |
| Tax as a share of home value | 0.74% | 0.81% | +9% |
| Household income, median | $71,957 | $50,465 | -30% |
| Typical monthly rent | $1,062 | $1,200 | +13% |
| Residents (Census estimate) | 6,851,073 | 80,049 |
A renter-heavy city, Bloomington has 65.3% of households renting (well above the Indiana median of 29%), which is good for demand and a reminder to check rent comparables carefully. Incomes matter for rent growth: the median household earns $50,465, well below the Indiana median of $71,957, and 64% of renters are already cost-burdened at 30 percent of income or more.
Homes, buildings and vacancies in Bloomington
The housing stock in Bloomington leans toward shared walls: 54% of units are in multi-unit buildings, and 10% sit in small two to four unit properties. The median structure went up in 1985, so request ages for the roof, HVAC and water heater on any rental you consider.
Vacancy is a quiet driver of rent. 10% of homes are vacant citywide and 6.4% of the rental inventory was listed for rent when the Census surveyed.
What the data means for Bloomington buyers
A gross yield of 4.5% means Bloomington is a market where purchase prices run ahead of rent, so a 1.0 ratio generally takes a larger down payment or a property priced below the local median. Housing here is neither new nor ancient, so condition varies widely from block to block and the inspection tells you more than the median. Renter-heavy markets like Bloomington favor investors with a clear tenant profile, whether workers, students or families.
Taxes and risk in Bloomington
In Bloomington the median tax bill for an owner-occupied home is $2,602, or about 0.81% of value (Indiana overall: 0.74%). That bill is well above the Indiana median of $1,614. That is about 18% of a year of median rent gone to taxes before the loan is even counted.
The federal National Risk Index scores Monroe County relatively low for overall risk, led by strong wind (relatively high), winter weather (relatively high) and heat waves (relatively moderate). That is a county-level view, so check the flood map for the exact parcel.
| Hazard in Monroe County, FEMA index | Level |
|---|---|
| Tornadoes exposure | Relatively Moderate |
| Heat waves exposure | Relatively Moderate |
| Winter weather exposure | Relatively High |
| Strong wind exposure | Relatively High |
| Social vulnerability score | Relatively Low |
| Annualized loss estimate | Relatively Low |
| Composite risk | Relatively Low |
Standard landlord policies usually exclude flood, and coastal ones can add a separate wind deductible, so ask the agent for Bloomington exclusions before trusting a premium estimate.
Working the Bloomington rent math
At the city medians a DSCR file in Bloomington has $983 a month after taxes to cover principal, interest, insurance and dues if the ratio is 1.00, or $743 if the ratio is 1.25. Those two numbers show why insurance quotes and tax estimates come first.
Rental rules for Bloomington, IN
For Bloomington, treat local rental rules as an open question to close before you offer. Ask the city and Monroe County about landlord registration, inspections and short-term rental permits, and check association documents too. State tax treatment of short stays, as it applies to Bloomington. Indiana charges state sales tax on rentals of under 30 days plus a county innkeeper's tax that varies by county, and Airbnb collects both for listings it handles while owners who rent directly register with the Department of Revenue.
Indiana gives a landlord 45 days after the tenancy ends to return a deposit, an easy deadline to miss without a checklist.
Neighbors of Bloomington by the numbers
Set Bloomington ($321,400 median value) beside its neighbors: Terre Haute comes in lowest at $115,700, and Carmel tops the group at $486,800.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Carmel | 26% | $4,056 | $486,800 | 101,651 | $1,712 |
| Terre Haute | 48% | $1,104 | $115,700 | 58,427 | $922 |
| Indianapolis | 44% | $2,037 | $224,800 | 885,860 | $1,156 |
| Greenwood | 41% | $1,932 | $276,100 | 66,029 | $1,312 |
| Bloomington | 65% | $2,602 | $321,400 | 80,049 | $1,200 |
Who rents in Bloomington
Roughly 7.1% of employed people in Bloomington are self-employed, a base of investors and landlords for whom a rent-based loan is a practical option. The same survey shows government workers are about 25% of employment, 59% of adults hold a bachelor's degree or higher and 6% of commuters travel 45 minutes or more.
Education is part of the Bloomington rental picture, with Indiana University Bloomington, Indiana University and Ivy Tech Community College of Indiana among the institutions listed. For getting around, Bloomington has interstate access via I-69 and air service through Indianapolis International Airport, which matters to commuters and to out-of-town owners planning a visit.
Before you make an offer in Bloomington
Run the Bloomington rent, tax and insurance figures through the DSCR calculator. When they clear the ratio, start an application or ask for a quote.
More Indiana markets
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- DSCR loans in Carmel, IN
- Every market we cover
References
- Indiana tax source: Indiana DOR, county innkeeper's tax
- Census ACS profile behind the Bloomington figures
- FEMA county hazard table
- Encyclopedia entry for Bloomington
- Deposit statute: IC 32-31-3-9, 3-12, 3-13, 3-14, 3-15, 3-16
The Bloomington statistics are five-year ACS estimates (2020 to 2024), which have sampling error. RedFlagLease (CC BY 4.0) supplies the Indiana landlord-tenant notes, and the statutes are linked. Facts were checked in October 2026, and rules change.
A short buyer checklist
For a Bloomington rental, request the current lease, the last tax bill and the insurance declarations page early, and confirm which utilities the tenant pays, because each one changes the monthly figure a lender compares with the rent.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Lease or market rent: what counts in Bloomington?
The property's own rent evidence decides: a lease, or the market rent from the appraisal. Citywide, Bloomington renters report a median of $1,200.
Do taxes and insurance count in the Bloomington DSCR ratio?
They do. Rent of $1,200 divided by 1.25 gives about $960 as the payment ceiling, and $217 of that is spoken for by the median Bloomington tax bill.
How much real estate tax do Bloomington homeowners pay a year?
About $2,602 a year at the median, which is 0.81% of value and well above the Indiana median of $1,614. Reassessment after a purchase can move that number, so get an estimate for the actual price.
What about VRBO or Airbnb income on a Bloomington purchase?
Depending on the lender, yes, if the property may legally be used that way and income is documented. Confirm the local permit, association rules and Indiana lodging taxes before you underwrite nightly income in Bloomington.
When must a Bloomington landlord return a deposit?
Start with IC 32-31-3-9, 3-12, 3-13, 3-14, 3-15, 3-16. Return window: 45 days. Talk to a Indiana attorney for a lease form that matches.
What does FEMA say about hazard risk near Bloomington?
Overall risk is rated relatively low for the county. Because the rating covers a whole county, look up the specific property on FEMA's flood map before you offer.
Can I close a Bloomington DSCR loan in an LLC?
It is optional. Lenders will close in a properly formed LLC and generally want the members to guarantee. Ask your accountant how a IN entity would be taxed.