Unlocking Investment Potential: A Guide to Rental Properties in Monroe County, IN

Monroe County, IN

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Investing in rental properties can be a highly profitable venture, provided you choose the right property in the right location. A good rental property is characterized by its ability to attract and retain tenants, provide steady income, and appreciate in value over time. The location of a rental property significantly impacts its success, as it affects demand, rental rates, and potential for long-term growth.

Monroe County, IN, offers a diverse range of neighborhoods and areas that are attractive for rental property investments. This guide provides an overview of the best neighborhoods and areas within Monroe County, grading each on several crucial factors: convenience, tourist attractions, things to do, average home prices, return on investment, proximity to work-related travel, and the ‘x-factor’ that makes the area unique and desirable.

Best Neighborhoods and Areas in Monroe County, IN

1. Bloomington


  • Convenience: A
  • Tourist Attractions: A
  • Things to Do: A
  • Average Home Prices: B
  • Return on Investment: A
  • Proximity to Work-Related Travel: A
  • X-Factor: A

Convenience: Bloomington, the largest city in Monroe County, offers excellent convenience with its well-developed infrastructure, public transportation, and proximity to major highways. It has numerous grocery stores, shopping centers, and essential services, making it an ideal location for renters.

Tourist Attractions: Home to Indiana University, Bloomington attracts tourists and visitors year-round. Key attractions include the Indiana University Art Museum, WonderLab Museum, and the annual Lotus World Music & Arts Festival.

Things to Do: Bloomington boasts a vibrant cultural scene, numerous parks, and recreational opportunities. Residents can enjoy outdoor activities at Griffy Lake Nature Preserve and Hoosier National Forest.

Average Home Prices: Average home prices in Bloomington are relatively higher compared to other areas in Monroe County, but the rental demand justifies the investment.

Return on Investment: Given the constant influx of students and faculty, properties in Bloomington have a high rental yield and low vacancy rates, offering excellent ROI.

Proximity to Work-Related Travel: Bloomington’s proximity to Indiana University, Monroe Hospital, and various corporate offices makes it convenient for work-related travel.

X-Factor: The presence of Indiana University gives Bloomington a unique and youthful vibe, attracting a diverse population and ensuring a steady demand for rental properties.

2. Ellettsville


  • Convenience: B
  • Tourist Attractions: B
  • Things to Do: B
  • Average Home Prices: A
  • Return on Investment: B
  • Proximity to Work-Related Travel: B
  • X-Factor: B

Convenience: Ellettsville offers a quieter, more suburban lifestyle compared to Bloomington. It has essential amenities like grocery stores, schools, and parks, although options are fewer.

Tourist Attractions: Ellettsville has several local attractions such as McCormick’s Creek State Park and the Monroe County Fall Festival, which draw visitors to the area.

Things to Do: Residents can enjoy a range of outdoor activities, local events, and community gatherings, although the entertainment options are more limited than in Bloomington.

Average Home Prices: Home prices in Ellettsville are generally lower, making it an attractive option for investors seeking affordable properties.

Return on Investment: While the rental demand is steady, it is not as high as in Bloomington, leading to moderate returns on investment.

Proximity to Work-Related Travel: Ellettsville is reasonably close to Bloomington, providing access to the job market there while offering a quieter residential setting.

X-Factor: Ellettsville’s small-town charm and community-focused lifestyle make it appealing for families and those looking for a slower pace of life.

3. Stinesville


  • Convenience: C
  • Tourist Attractions: C
  • Things to Do: C
  • Average Home Prices: A
  • Return on Investment: C
  • Proximity to Work-Related Travel: C
  • X-Factor: C

Convenience: Stinesville is a small town with limited amenities. Residents often travel to nearby towns for shopping, dining, and services.

Tourist Attractions: The town’s historic charm and local quarries attract a niche group of visitors interested in history and geology.

Things to Do: Stinesville offers limited recreational activities and entertainment options, focusing more on nature and history.

Average Home Prices: The home prices in Stinesville are very affordable, making it an entry-level market for investors.

Return on Investment: Given the low rental demand and limited amenities, the ROI in Stinesville is modest.

Proximity to Work-Related Travel: The town’s remote location means longer commutes for work-related travel.

X-Factor: Stinesville’s historical significance and scenic landscape give it a unique, albeit niche, appeal for certain types of tenants.


Monroe County, IN, offers a range of opportunities for rental property investment, with each area presenting its own set of advantages and challenges. Bloomington stands out for its vibrant community and strong rental market, while Ellettsville offers a more suburban lifestyle with affordable home prices. Stinesville, though limited in amenities, provides a unique historical charm.

When considering an investment, it's crucial to weigh these factors and choose a location that aligns with your investment goals. By understanding the strengths and weaknesses of each area, you can unlock the investment potential in Monroe County and make informed decisions that lead to long-term success.

Reveal your property’s rental profitability

Buy this property and list it on Airbnb.