Evansville Rental Property: DSCR Math by Tax District
DSCR Loans: Indiana
Evansville Rental Property: The DSCR Numbers in Evansville, Boonville, Mount Vernon, Newburgh and the Rest of the Tri County Area
The Evansville area is one of the cheapest places in Indiana to buy a three bedroom, and HUD gives the whole three county metro a single rent number. That makes the math here unusually clean: the price you pay and the tax district the parcel sits in do almost all of the work.
The short answer
In the Evansville area, a three bedroom bought near the city of Evansville's $143,100 median value lands around a 1.24 DSCR on our example math, while the suburban medians in Warrick and Posey counties land between 0.78 and 0.87. HUD gives all three counties the same $1,387 three bedroom Fair Market Rent for FY2027, so the deal is decided by price and by the parcel's tax district. A DSCR investor loan qualifies on that rent against the full payment, not on your income.
Pillar Mortgage Group DSCR program at a glance
- Minimum DSCR
- As low as 0.50
- Cash out
- Up to 80% LTV, no ownership seasoning
- Gift funds
- 100% gift for down payment, closing costs and reserves
- Interest only
- 10 years IO on a 40 year term, or a 30 year term with IO
- First time investors
- Allowed, no primary residence or VOR needed
- Reserves
- None required under $1M loan amount and under 75% LTV
- Loan amount
- Up to $5 million
- Where we lend
- 35 states, Arizona plus 34 more
Program terms as of November 2026. Every loan is subject to underwriting and property eligibility. This is not a commitment to lend.
Our Indiana DSCR loan page covers the statewide rules and the Indianapolis and Fort Wayne numbers. Our companion post on Indiana's 2% property tax cap for rentals ranks eight Indiana cities. This one stays in the southwest corner of the state and goes district by district, because in Evansville the tax line is where most people get the math wrong.
Every figure below was checked on November 9, 2026 against HUD User's FY2027 Fair Market Rents, Census Bureau QuickFacts and the 2026 budget orders the Indiana Department of Local Government Finance issued for Vanderburgh, Warrick and Posey counties.
One Rent for Three Counties
HUD treats Vanderburgh, Warrick and Posey counties as one Fair Market Rent area, so a rental in downtown Evansville and one in Newburgh screen against the same benchmark.
For FY2027 the three bedroom benchmark rose $17 and the four bedroom slipped $5. HUD built the figure from a two bedroom base rent of $994 for the metro, a recent mover factor of 1.0223 and its inflation and trend factors. The Indiana state minimum two bedroom rent this year is $1,014, and the Evansville figure sits above it.
| Evansville HUD rent area | 1 bed | 2 bed | 3 bed | 4 bed |
|---|---|---|---|---|
| FY2027 | $872 | $1,127 | $1,387 | $1,534 |
| FY2026 | $860 | $1,113 | $1,370 | $1,539 |
| Change | up $12 | up $14 | up $17 | down $5 |
Those are modest rents by national standards. What makes Evansville work for a lot of investors is that prices are modest too.
Same HUD rent in all three counties. The median value runs from $143,100 in Evansville to $242,500 in Warrick County.
Buying an Evansville area rental in Indiana? Send us the address and the tax district it sits in. We will run the DSCR on the real tax line and the HUD rent before you offer.
The Towns Side by Side
The city of Evansville is the lowest priced and most rented place in the metro, and Warrick and Posey counties are owner country.
| Place | Median home value | Owner occupied | Median gross rent (ACS) | Population, July 2025 |
|---|---|---|---|---|
| Evansville city | $143,100 | 54.6% | $975 | 116,176 |
| Vanderburgh County | $184,000 | 65.0% | $985 | 181,995 |
| Boonville city | $162,400 | 66.9% | $873 | 6,689 |
| Warrick County | $242,500 | 82.4% | $1,061 | 66,803 |
| Mount Vernon city | $163,300 | 66.6% | $783 | 6,289 |
| Posey County | $222,900 | 82.3% | $782 | 24,988 |
Two things jump out. First, 82.4% of Warrick County households own their homes, so rental inventory there is thin and buyers compete with owner occupants on price. Second, the Census median gross rent in Mount Vernon is $783 and in Posey County $782, far below HUD's $1,387 three bedroom figure. That gap is a warning: in the smaller towns, check what houses on the street actually lease for before you lean on the HUD number. Newburgh is too small for its own QuickFacts profile, so we use the Warrick County median for it.
Tax Districts and the 2% Cap
In Vanderburgh County the 2% cap sets a rental's tax bill almost everywhere, while in the Warrick and Posey suburbs the district rate is low enough that the actual rate applies.
Indiana caps a property tax bill as a share of gross assessed value. A homestead is capped at 1%, but a single family house that is not your homestead, which is what a rental is, falls in the 2% class. When a district's rate is above 2.0000 per $100 of assessed value and the rental has no deductions, the cap is what decides the bill. When the rate is below 2.0000, the rate itself decides it.
Here is the local twist: every 2026 district rate in Vanderburgh County is above 2.0000, even out in the townships. Across the county line, Ohio Township in Warrick County carries a 2026 district rate of 1.3989, so a rental there is billed on the rate, not the cap.
| District (2026 budget order) | 2026 rate per $100 | Which number sets a rental's bill | Yearly tax at the area median |
|---|---|---|---|
| Evansville city, Pigeon Township | 3.5448 | 2% cap | $2,862 |
| Evansville city, Knight Township | 3.4242 | 2% cap | $2,862 |
| Center Township, unincorporated | 2.1319 | 2% cap | $3,680 |
| Perry Township, unincorporated | 2.0745 | 2% cap | $3,680 |
| Boonville city | 3.1989 | 2% cap | $3,248 |
| Newburgh town | 1.9061 | rate | $4,622 |
| Ohio Township, Warrick, unincorporated | 1.3989 | rate | $3,392 |
| Mount Vernon city | 3.5504 | 2% cap | $3,266 |
| Black Township, Posey, unincorporated | 1.7175 | rate | $3,828 |
The Evansville city rows use the city median, the unincorporated Vanderburgh rows the county median, Newburgh and Ohio Township the Warrick median, and Black Township the Posey median. We treat the median value as the assessed value for the example; your parcel's assessment will differ. Mount Vernon's 2026 district rate is 3.5504, the highest of the districts we checked, but the cap holds a rental there to 2% like Evansville.
Run the DSCR on your deal
DSCR calculator
Clears 1.00. Rent covers the full monthly payment.
- Principal and interest$1,678
- Property tax$250
- Insurance$120
- HOA dues$0
- Total monthly payment (PITIA)$2,048
- Monthly rent$2,200
Illustrative only. This is not a quote, a rate, an approval or a commitment to lend. Default values are placeholders, not Pillar Mortgage Group rates or terms. DSCR here is monthly rent divided by principal and interest (or interest only), property tax, insurance and HOA dues. A lender sets the rent figure it uses from the appraisal and lease, and every loan is subject to underwriting.
Want the real ratio on this property? Send us the address and the rent. We will run it the way a lender will and tell you where it lands.
The DSCR Math
The city of Evansville leads at about 1.24, Boonville and Mount Vernon land near 1.11, unincorporated Vanderburgh sits right at the line and the Warrick and Posey suburbs fall short at their medians.
The setup: buy at the area median value with 25% down and a 30 year fixed at Freddie Mac's 7.18% average from November 5, 2026, as a reference rate only (a conventional loan average, not a DSCR rate and not a rate we are quoting). Tax comes from the table above. Insurance is $1,800 a year, an example number, not market data and not a quote. Rent is HUD's $1,387 three bedroom benchmark.
| Scenario | Loan | P and I | Monthly tax | DSCR, 30 year fixed | DSCR, interest only at 30% down |
|---|---|---|---|---|---|
| Evansville city, $143,100 | $107,325 | $727 | $238 | 1.24 | 1.40 |
| Boonville, $162,400 | $121,800 | $825 | $271 | 1.11 | 1.26 |
| Mount Vernon, $163,300 | $122,475 | $830 | $272 | 1.11 | 1.25 |
| Unincorporated Vanderburgh, $184,000 | $138,000 | $935 | $307 | about 1.00 | 1.13 |
| Black Township, Posey, $222,900 | $167,175 | $1,133 | $319 | 0.87 | 0.99 |
| Ohio Township, Warrick, $242,500 | $181,875 | $1,232 | $283 | 0.83 | 0.96 |
| Newburgh, $242,500 | $181,875 | $1,232 | $385 | 0.78 | 0.89 |
Now flip it around and ask what price a three bedroom can carry at 1.00. Anywhere the 2% cap sets the bill, which covers Evansville, unincorporated Vanderburgh, Boonville and Mount Vernon, the answer is about $183,300. In Ohio Township the lower rate stretches that to about $198,000, in Black Township about $190,000 and in Newburgh about $185,500. So the honest summary of this market is simple: a rentable three bedroom under about $183,000 tends to clear 1.00, and the suburbs only work when you buy well below their medians.
Bedroom Count Matters
The fourth bedroom is worth $147 a month of HUD rent here, and a two bedroom only clears 1.00 at the city of Evansville's median.
At the $1,534 four bedroom benchmark, Evansville lands near 1.38, Boonville and Mount Vernon near 1.23 and Ohio Township near 0.92. At the $1,127 two bedroom benchmark, Evansville lands near 1.01 and Boonville and Mount Vernon near 0.90. Our ratio floor is 0.50, so lower ratios can still be financed, but if you want a deal that pays for itself on paper, the three and four bedroom houses inside the city are where this metro shines.
Financing an Evansville Rental
The program terms that matter most here are interest only, the first rental path and cash out for investors who buy below value and fix up.
- Interest only: ten years interest only on a 40 year term, or a 30 year term with interest only, up to 70% LTV on a purchase and 65% on a cash out. It moves unincorporated Vanderburgh from about 1.00 to 1.13 in our table.
- First rental is fine: no primary residence ownership and no VOR required. Our DSCR loan for new investors post covers that path in detail.
- Cash out up to 80% LTV with no ownership seasoning, which suits the older housing stock inside Evansville that often needs work.
- No reserves under $1 million and under 75% LTV, no asset sourcing, no large deposit sourcing and no seasoning, and a 100% gift can cover the down payment, closing costs and reserves.
- DSCR as low as 0.50 and loans up to $5 million.
For the reserve lines in more detail, see our DSCR loan reserve requirements guide. Our loan programs page lists everything else we place.
Where It Goes Wrong
It goes wrong when the buyer budgets the seller's tax bill.
Honest caveat: the seller of an owner occupied house has been paying under the 1% homestead cap, often with deductions on top. The day it becomes your rental, it moves to the 2% class, and in a district like Pigeon Township the bill can roughly double. Voter approved referendum levies can also sit outside the caps, so read the actual tax statement and the county's numbers for the parcel, not the listing sheet. And remember the HUD rent is a benchmark; the lender uses the lease or the appraiser's rent schedule.
My Evansville Checklist
- Find the tax district on the parcel. An Evansville mailing address can sit in the city, an unincorporated township or across the line in Warrick County.
- Compare the district rate to 2.0000. Above it, budget 2% of assessed value. Below it, budget the rate.
- Pull rent comps for the street, especially in Mount Vernon, Boonville and Posey County.
- Get a landlord insurance quote before you offer, not after.
- Price the work. Low medians often mean older houses.
- Send us the address. We run the DSCR the way the lender will and show you the down payment and the payment.
Sources
All sources checked November 9, 2026. Data changes, so confirm before you rely on it.
- HUD User, FY2027 Fair Market Rents, Vanderburgh County, IN (Evansville, IN MSA). 1 bed $872, 2 bed $1,127, 3 bed $1,387, 4 bed $1,534 (FY2026 $860, $1,113, $1,370, $1,539); base rent $994, recent mover factor 1.0223, Indiana state minimum 2 bed $1,014; area is Posey, Vanderburgh and Warrick counties
- U.S. Census Bureau QuickFacts, Evansville city, Boonville city, Mount Vernon city and Vanderburgh, Warrick and Posey counties, Indiana. Median value of owner occupied housing units, owner occupied rate and median gross rent, ACS 2020 to 2024; population estimates July 1, 2025 (V2025)
- Indiana Department of Local Government Finance, 2026 Budget Order, Vanderburgh County (December 30, 2025). 2026 district rates: Evansville city Pigeon 3.5448, Knight 3.4242, Center 3.4338, Perry 3.4248; Center Township 2.1319, Knight Township 2.1469, Perry Township 2.0745, German 2.4711, Scott 2.4665, Armstrong 2.4590, Union 2.1452
- Indiana Department of Local Government Finance, 2026 Budget Order, Warrick County (January 14, 2026). 2026 district rates: Ohio Township 1.3989, Newburgh Town 1.9061, Boonville City 3.1989, Boon Township 1.4136, Chandler Town Ohio Township 1.9712
- Indiana Department of Local Government Finance, 2026 Budget Order, Posey County (January 14, 2026). 2026 district rates: Mount Vernon City 3.5504, Black Township 1.7175
- Indiana Department of Local Government Finance, Fact Sheet: Circuit Breaker Tax Caps (November 2025). Caps of 1% homestead, 2% residential including a single family dwelling that is not a homestead, 3% nonresidential, measured against gross assessed value; voter approved referendum funds can be exempt from the caps
- Freddie Mac Primary Mortgage Market Survey. 30 year fixed average 7.18% as of November 5, 2026 (reference only)
Frequently asked questions
Is Evansville a good place to buy a rental property?
For DSCR math, the city of Evansville is one of the stronger spots in Indiana. HUD's FY2027 three bedroom Fair Market Rent is $1,387 and the city's median home value is $143,100, which lands near a 1.24 DSCR on our example numbers. The Warrick and Posey suburbs only clear 1.00 when you buy well below their medians.
What is the Fair Market Rent in Evansville for 2027?
HUD's FY2027 Fair Market Rents for the Evansville area, which covers Vanderburgh, Warrick and Posey counties, are $872 for a one bedroom, $1,127 for a two bedroom, $1,387 for a three bedroom and $1,534 for a four bedroom.
What is the property tax rate on a rental in Evansville?
The 2026 rate for the city of Evansville in Pigeon Township is 3.5448 per $100 of assessed value, but Indiana caps a rental's bill at 2% of gross assessed value. With no deductions the cap sets the bill, so a $143,100 house is taxed about $2,862 a year before any voter approved referendum levy.
Is Newburgh or Evansville better for a rental?
On our example math the city of Evansville carries a three bedroom better, near 1.24 at its median, while a Newburgh house at the Warrick County median of $242,500 lands near 0.78. Newburgh's lower tax rate helps, but the higher price outweighs it.
What price works for an Evansville rental on a DSCR loan?
Where the 2% cap sets the tax, a three bedroom at the HUD rent stops clearing 1.00 at about $183,300 on our example numbers. Interest only at 30% down adds room.
Can I get a DSCR loan on an Evansville rental?
Yes. Indiana is one of the 35 states where Pillar Mortgage Group places DSCR loans. The loan qualifies on the property's rent against the full payment, with ratios as low as 0.50, loans up to $5 million and no tax returns or W2s.
Why Pillar Mortgage Group
A brokerage built for rental investors. That difference is the whole point.
We are a brokerage. We price your DSCR file across the wholesale lenders we work with and bring you the one that fits the deal, instead of the only product on one bank's shelf.
DSCR loans qualify on the rent, not your tax returns. Ratios as low as 0.50, loans up to $5 million, and first time investors welcome.
Arizona plus 34 more states, from Alabama to Wyoming. One team for the whole portfolio, wherever the next door is.
If the numbers do not work, we say so before you spend money on an appraisal. We would rather tell you in week one than sell you a loan you should not take.
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This content is for informational and educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, loan programs, and market conditions are subject to change without notice. Not a commitment to lend. All loans subject to credit approval. Third-party market data sourced from publicly available information. Pillar Mortgage Group conducts business in accordance with the Fair Housing Act and the Equal Credit Opportunity Act.
