Save My DSCR Loan
Evansville, IN DSCR LoansHybrid Market

DSCR Loans in Evansville, IN

Finance investment properties in Evansville with a DSCR loan. Qualify based on rental income, not tax returns. Median rent at $950/mo with +3.5% annual growth.

Get Pre-QualifiedCall Now
$950/mo
Median Rent
$155K
Median Home Price
+3.5%
Rent Growth (YoY)
315K
Metro Population

Market data updated 2026-01-30

Evansville Market Snapshot

Why Invest in Evansville?

  • Tri-state area hub for Indiana, Illinois, and Kentucky with diverse economy
  • Ultra-affordable market with strong cash-on-cash returns
  • University of Evansville and USI provide student rental demand

Key Economic Drivers

ManufacturingHealthcareLogisticsEnergy
Median Rent
$950/mo
Rent Growth
+3.5%

Property Types We Finance

Single Family2-4 UnitsMulti-Family

Popular Investment Areas

East SideNorth SideNewburghUniversity Area

Metro Population

315K

Evansville metro area — a strong tenant pool for rental property investors.

DSCR Analysis

Hypothetical DSCR Illustration for Evansville, IN

An illustration built from Evansville's market data, with no interest rate assumed. Taxes and insurance use local averages; principal and interest come from your own quote, so the figures below show how much of the median rent is left for that payment at common DSCR targets.

Loan Structure

Purchase Price (local median)$155,000
Down Payment20% of the price
Loan Amount80% of the price
Interest RateSet by your quote

Monthly Costs (PITIA)

Principal & InterestFrom your quoted rate
Property Tax (0.85% rate)$110
Insurance$150
Total PITIAP&I + taxes + insurance

What the Median Rent Has to Cover

Hypothetical illustration. DSCR = rent ÷ PITIA; no rate assumed.

Median Monthly Rent$950
Taxes + insurance27% of rent
Left for P&I + HOA at a 1.0 DSCR73% of rent
Left for P&I + HOA at a 1.25 DSCR53% of rent
Test the payment from your quote in the DSCR calculator

Hypothetical illustration, no interest rate assumed. At Evansville's median rent of $950/month, local property taxes (0.85% of the $155,000 median price) and insurance (about $1,800 a year) use roughly 27% of the rent. To reach a 1.0 DSCR, principal, interest and any HOA dues would have to fit within the remaining 73% of rent; a 1.25 DSCR leaves about 53%. Your actual ratio depends on the payment in your own quote, which you can test in our DSCR calculator.

Estimated Cap Rate
4.3%
Evansville's estimated cap rate is 4.33%, indicating a appreciation-focused market where price growth drives returns.
Rent Analysis

Evansville Rent Projection

Year 1 and Year 5 rent collections based on Evansville's +3.5% annual rent growth and 6.1% vacancy rate. Loan payments aren't included because they depend on your quote.

Year 1 Projection

Gross Annual Rent$11,400
Vacancy Loss (6.1%)-$695
Effective Gross Income$10,705
Monthly Rent Used$950/mo

Year 5 Projection

Projected Monthly Rent$1,090/mo
Gross Annual Rent$13,080
Vacancy Loss (6.1%)-$798
Effective Gross Income$12,282
Change vs Year 1+14.7%

After the local 6.10% vacancy allowance, a median Evansville rental collects about $10,705 in Year 1. If rents grow 3.50% a year, collections reach about $12,282 by Year 5, roughly 14.7% more. This projection covers rent only: how well that rent covers the loan depends on the payment in your quote, and taxes and insurance can rise over the same years.

Market Comparison

Evansville vs. Indiana Average

How Evansville's rental market compares to the Indiana statewide average.

Median Rent
$950/mo
↓ 26.9% below state avg
Median Home Price
$155K
↓ 32.6% below state avg

Evansville's median rent of $950/month is 26.9% below the Indiana state average of $1,300/month. Home prices at $155,000 are 32.6% below the state average of $230,000.

Investment Strategy

Evansville Investment Strategy: Hybrid

Evansville excels as a balanced market where $950/mo rents and $155K entry points create genuine cash-flow potential with appreciation upside. The manufacturing economy provides tenant stability. With a 7.35% rent-to-price ratio and 3.5% rent growth, the rent has room to cover the payment on well-chosen properties. Consider East Side for established returns or North Side for value-add plays.

Tax + Ins. / Rent
27%
Cap Rate
4.3%
Vacancy Rate
6.1%
Tax Rate
0.85%
FAQ

DSCR Loan Questions for Evansville

What is the minimum DSCR ratio for a loan in Evansville?
There is no single DSCR minimum for Evansville investment properties: each investor program sets its own floor, and a 1.0 means the qualifying rent equals the full PITIA payment. Some programs set their floor above 1.0, and select programs consider ratios below it with compensating factors. Your loan officer confirms which programs fit the ratio your property produces.
What's the minimum down payment for DSCR loans in Evansville?
The minimum is the program's maximum loan-to-value for your file. Select programs go down to 15% for stronger credit and DSCR profiles, while lower scores, sub-1.0 ratios and harder property types call for more. The Evansville market itself does not set the minimum; the program and your scenario do.
Where should I buy an investment property in Evansville, IN?
Top investment neighborhoods in Evansville include East Side, North Side, Newburgh. Each area offers a different investor profile ranging from cash flow to appreciation, so aligning your strategy with the right neighborhood is essential for maximizing DSCR loan performance.
Is Evansville a good market for DSCR-financed vacation rentals?
Evansville can support short-term rentals in some areas, though it is primarily a balanced market. Whether a specific property works depends on local rules, seasonality and how the program counts the income, so check all three before you buy.
How do property taxes impact investment returns in Evansville?
At Evansville's median price and rent, property taxes use roughly 12% of the rent before insurance, principal and interest. Every point of rent that goes to taxes is a point that can't go to the payment or to cash flow, so compare tax bills across the neighborhoods you are considering.
What's the typical cash-on-cash return for Evansville rentals?
There is no typical figure we can quote for Evansville, because cash-on-cash return depends on your price, down payment, the rate on your own quote, and your repair, management and vacancy costs. Work it out per property: annual cash flow after the full payment and operating costs, divided by the cash you put in. +3.5% annual rent growth can improve it over time if it continues.
How has rent growth trended in Evansville?
Rent growth in Evansville has trended at +3.5% annually, outpacing national averages. Programs qualify a loan on today's lease or market rent, so future growth helps your cash flow and a later refinance rather than today's DSCR. University of Evansville and USI provide student rental demand

Licensing for Indiana

Cornerstone First Mortgage, LLC (NMLS #173855) — Indiana (DFI) Mortgage Lending License, No. 36892.

Check any license on NMLS Consumer Access, or see every state on our state license list. DSCR loans are business-purpose loans for investment property only.

Ready to Finance Your Evansville Investment?

Get pre-qualified in 60 seconds. We'll show you what you can borrow on a Evansville rental and walk you through the pricing for your scenario.

Get Pre-Qualified NowCalculate Your DSCR

More Indiana Investment Markets

Indianapolis, INFort Wayne, INSouth Bend, INCarmel, IN
View all Indiana DSCR loan info
Get Pre-Qualified