Real Estate Investing in Spencer, Indiana (47431)
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Should you buy in 47431 (Spencer, IN)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 16.0% of homes vacant — above national norms.
- Elevated poverty: 23.3% poverty rate — can affect rent collection.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Spencer, IN (47431)?
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Market Analysis: 47431 Spencer
Not every below-median market is a bargain. Spencer's 47431 ZIP reports signals that favor experienced operators who can absorb the risk $236K pricing implies.
Distressed markets are won on execution, not on spreadsheets. ZIP 47431 registers the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Within IN, ZIP 47431 trails on several market indicators that neighboring Owen County submarkets outperform. The gap is real and solid enough to shape underwriting.
The demographic picture in 47431 includes headwinds that any investor should price in. Income distribution skews lower than Spencer averages, and tenant stability requires active management.
Strategy in 47431 is an operator game, not a passive one. On balance, entry prices of $236K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Spencer:
Market Trends
Home Value History (with trend line)
📊 How Does 47431 Compare?
| Metric | 47431 | Spencer | Bloomington, IN | Indiana |
|---|---|---|---|---|
| Home Value | $235,837 | $246,321 | N/A | $248,442 |
| 5-Year CAGR | 4.5% | 5.4% | N/A | 7.7% |
| Avg Rent | $864 | $932 | N/A | - |
| Cap Rate | 2.9% | 2.9% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 47431 (Spencer, IN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $235,837 |
| Monthly Rent | $864 |
| Price-to-Rent | 22.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.4% |
| Cap Rate | 2.9% |
| 5-Year IRR | 7.3% |
📈 Home Appreciation
| 1-Year | +6.5% ▲ |
| 3-Year CAGR | +3.6% ▲ |
| 5-Year CAGR | +4.5% ▲ |
| 10-Year CAGR | +6.8% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.9%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 47431
Population: 1,401
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
Frequently Asked Questions
How much does a house cost in Spencer, IN?
In Spencer, IN the median home value sits at $236K. Against the broader IN market, that reads as reasonable for most investors.
Are tenants stable in Spencer, IN?
Working renters make up the core of the Spencer, IN tenant base. The pool is reasonable for investors targeting long-term holds.
What do rentals go for in Spencer, IN?
Average rent in Spencer, IN is approximately $864/mo per month. Against $236K home values that yields a reasonable rent-to-price ratio.
Are landlord laws favorable in Spencer, IN?
Rental owners in Spencer, IN deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
Is Spencer, IN a good market for FHA house hackers?
Spencer, IN is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $236K price point reasonable to enter.
You know 47431 now. You don’t know where it ranks.
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How 47431 ranks in Bloomington, IN
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