1031 Exchange in Kokomo MSA
The Kokomo MSA offers exceptional 1031 exchange opportunities with ultra-affordable housing ($126K-$230K, 60-70% below national), competitive property taxes (0.9-1.00% vs. 1.02% national), automotive manufacturing stability anchored by General Motors and Stellantis, and seller's market conditions creating outstanding cash flow potential in a manufacturing-focused economy.
Population
82,000+
Key Industries
General Motors (Kokomo Components), Stellantis (four major plants), Delphi Electronics & Safety
Table of Contents
Information is for educational purposes only. Consult qualified professionals for specific advice.
Local Tax Considerations
Property taxes, transfer taxes, and local incentives
Property Tax Rates
Average Rate
0.85% - 1.05%
Assessment Method
Assessed Value (Indiana Property Tax Code)
MSA rate (0.9-1.00%) vs State average (0.77%)
Slightly above state average, competitive with national
Transfer Taxes & Fees
Transfer Tax Rate
No state transfer tax
Indiana has no state transfer tax; local recording fees and documentary stamps apply
Local Tax Incentives
Indiana Economic Development Corporation Incentives
Tax incentives for manufacturing and business development
Eligibility: Qualifying manufacturing and commercial developments
Automotive Manufacturing Incentives
Incentives for automotive supply chain and manufacturing
Eligibility: Companies supporting automotive manufacturing
Howard County Economic Development
Local incentives for business expansion and job creation
Eligibility: Qualifying business developments creating jobs
Opportunity Zones
Number of Zones
2
Key Locations
- Central Kokomo
- South Kokomo
Opportunity Zones offer significant tax benefits for long-term investments, including deferral and potential elimination of capital gains taxes.
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Market Profile Dashboard
Economic indicators and market trends
Population
82,000+
Growth: +0.8% annually
Median Income
$62,333
Unemployment
3.8%
Job Growth
+1.2% annually
Economic Drivers
Market Trends
Median Home Price
$126,500 - $230,000
Average Rent
$917/mo
Cap Rates
12.0% - 18.0%
Demographics
Median Age
40 years
Bachelor's Degree+
17.2%
Owner Occupied
72.8%
Property Type Analysis
Investment opportunities by asset class
Multifamily
Exceptional demand from automotive workers, healthcare employees, and young professionals in ultra-affordable market.
Market Metrics
- Cap Rates: 15.5%
- Vacancy Trends: Low vacancy at 8.2% with manufacturing and healthcare employment
- Demand Forecast: Strong fundamentals with automotive and healthcare anchors
Risk Factors
- Automotive industry cyclicality
- Economic concentration risk
Opportunities
- Ultra-affordable acquisition costs
- Manufacturing employment stability
- Healthcare worker demand
Single-Family Rental
Popular with automotive workers, healthcare professionals, and families seeking affordable housing.
Market Metrics
- Cap Rates: 16.2%
- Vacancy Trends: Very low vacancy at 6.8% with stable employment base
- Demand Forecast: Excellent fundamentals with manufacturing and healthcare anchors
Risk Factors
- High owner-occupancy rate (72.8%)
- Automotive industry dependence
Opportunities
- Ultra-affordable entry points
- Exceptional cash flow potential
- Competitive property tax rates
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
Central Kokomo
Downtown area with opportunity zone benefits and revitalization potential
Investment Thesis
Opportunity zone advantages, ultra-affordable entry points, and downtown revitalization creating exceptional cash flow with tax benefits and long-term appreciation potential.
Median Price
$145,000
Price Growth
+8.5% YoY
Rental Yield
16.2%
Days on Market
28 days
Key Highlights
Development Pipeline
Downtown revitalization and mixed-use development
South Kokomo
Residential area with opportunity zone benefits and manufacturing employment access
Investment Thesis
Opportunity zone tax advantages, manufacturing employment proximity, and ultra-affordable housing creating exceptional rental yields with stable blue-collar tenant base.
Median Price
$125,000
Price Growth
+12.8% YoY
Rental Yield
18.5%
Days on Market
32 days
Key Highlights
Development Pipeline
Residential improvement and manufacturing support
West Kokomo
Established residential area with healthcare and education employment access
Investment Thesis
Healthcare employment proximity, established neighborhoods, and moderate pricing creating stable rental demand from healthcare workers and families.
Median Price
$185,000
Price Growth
+6.8% YoY
Rental Yield
13.2%
Days on Market
25 days
Key Highlights
Development Pipeline
Healthcare facility expansion and residential infill
North Kokomo
Newer residential area with automotive manufacturing employment access
Investment Thesis
Automotive employment proximity, newer housing stock, and competitive pricing creating rental demand from manufacturing workers and professionals.
Median Price
$215,000
Price Growth
+5.2% YoY
Rental Yield
11.8%
Days on Market
22 days
Key Highlights
Development Pipeline
Automotive facility expansion and residential development
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Compare Markets
See how this MSA stacks up against others
Compare Markets
| Metric | Kokomo (Current) | Fort Wayne | Evansville | Muncie |
|---|---|---|---|---|
| Population | 4.0M | 4.0M | 4.0M | 4.0M |
| Median Property Price | $750K | $750K | $750K | $750K |
| Average Cap Rate | 5.2% | 5.2% | 5.2% | 5.2% |
| Job Growth Rate | 2.1% | 2.1% | 2.1% | 2.1% |
| Rental Yield | 4.8% | 4.8% | 4.8% | 4.8% |
| Days on Market | 25 | 25 | 25 | 25 |
Frequently Asked Questions
Common questions about Kokomo 1031 exchanges
Kokomo offers outstanding fundamentals: ultra-affordable housing ($126K-$230K, 60-70% below national), competitive property taxes (0.9-1.00% vs. 1.02% national), automotive manufacturing stability anchored by General Motors (86+ years) and Stellantis (four major plants), seller's market conditions with 29-30 days on market, and exceptional cash flow potential with cap rates of 12-18%.
Automotive manufacturing provides exceptional stability: General Motors (86+ years presence), Stellantis (four major plants), Delphi Electronics creating consistent employment, blue-collar workforce requiring rental housing, stable income supporting rent payments, and manufacturing heritage providing long-term economic anchor, though subject to automotive industry cycles.
Yes, two opportunity zones exist in Central Kokomo and South Kokomo. These offer potential tax benefits for qualifying investments, particularly valuable given the ultra-affordable entry points, automotive manufacturing stability, and exceptional cash flow potential from ultra-low acquisition costs.
The economy is anchored by General Motors (Kokomo Components, 86+ years), Stellantis (four major plants), Delphi Electronics & Safety, Howard Regional Health, St. Vincent Kokomo, Haynes International (specialty metals), and supporting services, providing economic diversity within the manufacturing base and healthcare stability.
Kokomo's ultra-affordable housing ($126K-$230K, 60-70% below national) creates exceptional investment opportunities: ultra-high cap rates (12-18%), minimal capital requirements for entry, exceptional cash-on-cash returns, competitive property taxes (0.9-1.00%), and strong rental demand from manufacturing and healthcare workers, though requiring careful tenant screening and property management.