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Growth (also called appreciation) means a home gains value over time. Price-to-rent compares what a home costs with the rent it can earn. A better price-to-rent usually means more monthly cash flow. Some towns lean one way, and a few can give you both if you buy right.

• Kokomo (Good for both growth and price-to-rent). Homes cost little compared with the rent they bring in, and values have been rising faster than most of the metro. Watch out for: Farther from Indianapolis with a smaller buyer pool, so screen tenants and property condition carefully.
• Tipton (Steady, well-rounded market). A small county-seat town with affordable homes and steady price growth. Watch out for: Rents are modest compared with prices, so cash flow is thin.
• Elwood (Best for price-to-rent). Very low prices make rents go a long way. Watch out for: Older homes, so budget for repairs.
• Alexandria (Best for price-to-rent). Low prices and easy-to-find cash flow in a small town. Watch out for: Slower price growth and a thinner buyer pool.
• Sheridan (Strong long-term growth). A small Hamilton County town north of Noblesville where home values have climbed among the fastest in the metro over the past five years. Watch out for: Prices are already high for a small town, and rent data is thin, so run the numbers deal by deal.
• Muncie (Good for both growth and price-to-rent). Prices are low enough that rent covers a lot of the cost, and values have been rising steadily. Watch out for: Dollar gains are small. Screen tenants and property condition carefully.
• Lebanon (Good for both growth and price-to-rent). Values have been climbing faster than most nearby towns, yet prices are still well below Whitestown and Zionsville. Watch out for: Rents cover less of the price than in cash-flow towns, so buy at a discount.
• Whitestown (Strong long-term growth). Fast-growing, with new homes and nearby warehouse jobs driving demand. Watch out for: Prices are high against rents, so cash flow is thin, and price growth has cooled lately.
• Westfield (Strong long-term growth). A top Hamilton County growth town with lots of new construction and strong demand. Watch out for: High prices mean thin cash flow.
• Noblesville (Strong long-term growth). A major Hamilton County growth city with strong demand and a wide range of price points, from older starter homes to new builds. Watch out for: Typical prices are high against rents, so cash flow is thin. Older homes at lower prices are where the numbers can work.
• Lapel (Best for price-to-rent). A small, affordable town between Noblesville and Anderson where rents hold up well against home prices. Watch out for: Price growth has been flat, and it is a small market with fewer homes to compare.
• Anderson (Best for price-to-rent). Affordable homes and steady rental demand make cash flow easy to find. Watch out for: Slower price growth, and quality varies a lot by neighborhood.
• Zionsville (Strong long-term growth). An established, high-end market with steady long-term price growth. Watch out for: Expensive, so monthly cash flow is low.
• Carmel (Strong long-term growth). One of the most sought-after markets in the metro, with consistently strong demand. Watch out for: High prices and thin cash flow.
• Fishers (Strong long-term growth). One of the fastest-growing suburbs in the metro, with strong demand. Watch out for: High prices, thin cash flow, and cooling price growth.
• McCordsville (Good for both growth and price-to-rent). Fast growth east of Fishers, with prices below its neighbor. Watch out for: New builds are priced high. Stick to older or lower-priced homes.
• Pendleton (Good for both growth and price-to-rent). Demand is spilling over from Fishers and Noblesville, while prices stay well below theirs. Watch out for: Price growth has been slow lately. Older homes work best.
• Brownsburg (Strong long-term growth). A west-side suburb with steady demand, an easy commute to Indianapolis, and solid long-term price growth. Watch out for: Recent growth has been slow, so expect a steady climb more than a fast one.
• Fortville (Good for both growth and price-to-rent). It sits next to Fishers and McCordsville growth, with lower entry prices. Watch out for: Typical prices are high against rents, so aim for older, lower-priced homes.
• Indianapolis (Best for price-to-rent). Rents hold up well against home prices across the city, and some east and south side neighborhoods cash flow best. Watch out for: Prices have been flat, and results vary a lot by neighborhood, so check each area on its own.
• Greenfield (Steady, well-rounded market). A steady county seat east of Indianapolis with mid-range prices. Watch out for: Growth has been modest and rents cover less of the price, so buy at a discount.
• Greenwood (Steady, well-rounded market). A stable, easy-to-resell market south of Indianapolis with steady tenant demand. Watch out for: Modest price growth and mid-range rent against price.
• Avon (Steady, well-rounded market). A large, growing west-side suburb with steady demand and a wide mix of homes. Watch out for: Prices have climbed, so monthly cash flow is modest.
• Danville (Steady, well-rounded market). The Hendricks County seat west of Indianapolis, with steady demand and a settled feel. Watch out for: A smaller market, so fewer homes to compare.
• Plainfield (Best for price-to-rent). Strong rental demand from nearby employers and the airport area, and rents hold up well against home prices. Watch out for: Price growth has been slow, and prices vary a lot between older homes and new builds.
• Mooresville (Steady, well-rounded market). An affordable southwest commuter town with growing demand. Watch out for: A smaller market, so fewer comparable sales.
• Monrovia (Steady, well-rounded market). A small Morgan County town with a rural feel and commuter access to the Indianapolis area. Watch out for: Prices are higher than you might expect for a small town, so cash flow is modest.
• Southport (Steady, well-rounded market). A small city on Indianapolis’s south side with lower prices than the north suburbs and quick access to downtown. Watch out for: Neighborhoods vary, so check each street.
• Pittsboro (Steady, well-rounded market). A small town northwest of Brownsburg picking up spillover demand from Brownsburg and Whitestown. Watch out for: A small market, so fewer homes to compare.
• Lawrence (Best for price-to-rent). Lower prices than most north and west suburbs, with rents that hold up well against what homes cost. Watch out for: Price growth has been flat lately, and quality varies by neighborhood, so check each area closely.