1st Advantage MortgageLafayette is a IN market where the rent-to-payment ratio decides the loan. Median rent is $1,079, median home value is $172,800 and 53% of households rent.
Lafayette by the Census numbers
Median gross rent in Lafayette: $1,079, close to the Indiana median of $1,062. Median owner-occupied home value: $172,800, about 21% below the Indiana median of $218,200. Those are citywide medians, so an individual address can sit well on either side of them. Put the two medians together and Lafayette shows a gross yield of 7.5%, neither especially thin nor especially rich. Because the rent number covers apartments as well as houses, expect single-family rentals to land above or below it.
| Indicator | Indiana | Lafayette | Difference |
|---|---|---|---|
| Households that rent | 29.4% | 53.3% | +81% |
| Tax as a share of home value | 0.74% | 0.65% | -13% |
| Household income, median | $71,957 | $53,716 | -25% |
| Typical owner-occupied value | $218,200 | $172,800 | -21% |
| Typical monthly rent | $1,062 | $1,079 | +2% |
| Persons per household | 2.46 | 2.16 | |
| Share in 2-4 unit buildings | 6.0% | 14.1% | +134% |
| Share of homes detached | 72.6% | 56.8% | -22% |
| Long commuters, 45 min plus | 12.7% | 4.3% | -66% |
| Degree holders, age 25+ | 29.5% | 27.9% | -5% |
| Workers on their own account | 8.0% | 6.0% | -25% |
| Renters paying 30%+ of income | 48.1% | 52.7% | +10% |
| Units sitting vacant | 8.8% | 5.4% | -38% |
| Typical construction year | 1976 | 1971 | |
| Annual rent divided by value | 5.8% | 7.5% | +28% |
| Residents (Census estimate) | 6,851,073 | 71,159 |
53.3% of households in Lafayette rent, well above the Indiana median of 29%. A large renter base supports steady leasing but also means plenty of competing listings. Median household income is $53,716, well below the Indiana median of $71,957, and 53% of renter households pay 30 percent or more of income on rent.
Housing stock and vacancy in Lafayette
The housing stock in Lafayette leans toward shared walls: 38% of units are in multi-unit buildings, and 14% sit in small two to four unit properties. The median home was built in 1971, a middle-aged stock where roofs, HVAC and water heaters are the main repair items.
Use vacancy as a reality check: 5% of all units are vacant in Lafayette, and the rental vacancy rate is 4.3%.
Underwriting angles in Lafayette
A 7.5% gross yield makes Lafayette a market where the ratio is achievable but not automatic. A few hundred dollars of extra insurance or dues can decide a borderline file. With a 1971 median build year, the question for each property is when the roof and HVAC were last replaced. A large renter population (53%) supports leasing, though it also means many competing landlords, so condition and price positioning count.
Taxes and risk in Lafayette
Property taxes in Lafayette run a median $1,117 a year for owners, well below the Indiana median of $1,614. As a share of median value, that is about 0.65%. That is about 9% of a year of median rent gone to taxes before the loan is even counted.
The federal National Risk Index scores Tippecanoe County relatively moderate for overall risk, led by cold waves (relatively high), winter weather (relatively high) and strong wind (relatively high). That is a county-level view, so check the flood map for the exact parcel.
| Hazard in Tippecanoe County, FEMA index | Level |
|---|---|
| Hail exposure | Relatively Moderate |
| Strong wind exposure | Relatively High |
| Winter weather exposure | Relatively High |
| Cold waves exposure | Relatively High |
| Social vulnerability score | Relatively Low |
| Annualized loss estimate | Relatively Low |
| Composite risk | Relatively Moderate |
In Tippecanoe County, as anywhere, the premium is part of PITIA, which means a quote with the roof, age and flood zone of the actual Lafayette address belongs in your file early.
The ratio in Lafayette dollars
Take the median rent ($1,079), subtract median taxes spread over twelve months ($93), and you have $986 of room at a 1.00 ratio. A lender asking for 1.25 cuts that to $770. Real quotes for the address decide the rest.
Legal checks before a Lafayette purchase
Local rental rules in Lafayette are not summarized here because we could not verify them from a city source. Ask the city and Tippecanoe County about registration, inspection and short-term rental requirements, and confirm what an HOA allows. If you are weighing nightly income in Lafayette, the state tax backdrop is this. 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.
The return clock runs 45 days from move-out in Indiana, so Lafayette landlords should keep move-in photos and repair receipts.
How Lafayette stacks up against its neighbors
Kokomo's median home value of $137,400 is the group's floor and Carmel's $486,800 its ceiling, while Lafayette is $172,800.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Fishers | 24% | $3,680 | $391,000 | 102,337 | $1,611 |
| Noblesville | 29% | $3,112 | $349,700 | 73,362 | $1,389 |
| Carmel | 26% | $4,056 | $486,800 | 101,651 | $1,712 |
| Kokomo | 37% | $1,075 | $137,400 | 59,122 | $939 |
| Lafayette | 53% | $1,117 | $172,800 | 71,159 | $1,079 |
Employers and institutions near Lafayette rentals
6.0% of employed residents work for themselves, which matters here because DSCR lending does not ask for tax returns or pay stubs. Looking at who fills the rentals, government workers are about 13% of employment, 28% of adults hold a bachelor's degree or higher and 4% of commuters travel 45 minutes or more.
Campuses such as Ivy Tech Community College of Indiana and Purdue Polytechnic Institute pull tenants into Lafayette, and landlords near them can plan around move-in seasons. Access runs through air service through Purdue University Airport and Indianapolis International Airport, which shapes where commuters want to live and how long a showing takes.
Taking a Lafayette deal to a lender
Gather the lease or rent estimate, the tax estimate and an insurance quote for the Lafayette address, check them in the calculator, and begin your application or get a quote first.
More Indiana markets
- All Indiana DSCR loans
- DSCR loans in Kokomo, IN
- DSCR loans in Carmel, IN
- DSCR loans in Noblesville, IN
- DSCR loans in Fishers, IN
- Every market we cover
Sources
- American Community Survey tables, Indiana
- FEMA National Risk Index
- Lafayette overview (Wikipedia)
- Deposit statute: IC 32-31-3-9, 3-12, 3-13, 3-14, 3-15, 3-16
- Indiana DOR, county innkeeper's tax
We took the Lafayette data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. Deposit and notice summaries come from RedFlagLease (CC BY 4.0) and the linked Indiana sections. Last reviewed October 2026; the city and county have the final word on Lafayette rules.
Pre-offer checklist
Before you commit on a Lafayette deal, confirm the rent with the lease or a market estimate, price the insurance for the exact address, and check how the taxes may change after the sale, so the ratio you run matches the one the lender calculates.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent number goes into a Lafayette, IN DSCR calculation?
Underwriters take the lease if one exists and compare it with the appraisal's rent estimate; the lower figure often governs. Lafayette median rent is $1,079.
How is the DSCR figure built for a Lafayette property?
The denominator is the whole housing payment. Using Lafayette's median rent of $1,079, a ratio of 1.25 allows $863, and a ratio of 1.00 allows all $1,079.
What does Tippecanoe County charge in property tax, in practice?
The median bill is $1,117, an effective rate near 0.65%. Because Tippecanoe County may reassess at sale, use an estimate on the new price when you run the ratio.
Is short-term rental income allowed for a Lafayette DSCR loan?
Often, with conditions: legal use under city and association rules, documented income and an insurance policy that covers guests. Lafayette owners should check all three first.
What are the security deposit rules for a Indiana landlord?
Return is due within 45 days after the tenant leaves. The governing section is IC 32-31-3-9, 3-12, 3-13, 3-14, 3-15, 3-16.
Should I worry about hazards at a Lafayette property?
At the county level FEMA calls overall risk relatively moderate. Insurance, not the index, shows up in the ratio, so price a policy for the Lafayette address.
Can I close a Lafayette DSCR loan in an LLC?
You do not need one, and many investors close in an entity. If you use an LLC, the lender asks for formation documents and usually a personal guaranty. Talk to your attorney and accountant about structure for a Indiana property.