Franklin (IN) Investor Pulse Report (2026-Q1)

In Franklin County, investors hold 644 Single-Family Residential (SFR) properties, accounting for 11.6% of the total 5,550 SFRs in the market.

Individual investors are the definitive force in the local rental market, owning 516 properties, which is 80.1% of the entire investor-owned portfolio. Company-owned properties total 128, making up the remaining 19.9%.

The number of individual landlords (604) is more than six times the number of company landlords (99), underscoring the market's reliance on small-scale, non-corporate ownership.

An overwhelming 97.9% of the investor-owned portfolio was acquired with cash, with 631 cash-bought properties compared to just 13 that are financed. This indicates a market with very low leverage and high investor equity.

The primary focus of these holdings is rentals, with 617 properties currently being rented out, confirming the portfolio's use as a source of housing for tenants in the county.

Acquisition pricing for landlords in Franklin County has demonstrated extreme volatility throughout 2025, a pattern driven by very low transaction volumes which can cause averages to fluctuate dramatically.

In Q3 2025, landlords acquired properties at an average price of $162,367, representing a significant 45.4% discount compared to the traditional homeowner price of $297,561. This amounted to a $135,194 price advantage for investors.

This trend reversed sharply from Q1 2025, where landlord acquisitions averaged $570,000, a staggering 149.4% premium over the homeowner average of $228,574. Such a large premium is likely the result of one or very few high-value, non-typical purchases rather than a broader market trend.

In Q2 2025, the market showed a more moderate dynamic, with landlords paying $217,000, or 9.2% less than homeowners who paid an average of $239,064.

The lack of consistent purchasing activity, with zero properties purchased in several recent quarters, makes it difficult to establish a stable pricing trend, highlighting a sporadic and opportunistic acquisition environment for investors in this county.

Investor acquisition activity came to a complete standstill in the fourth quarter of 2025. Landlords purchased zero of the 9 SFR properties that sold in Franklin County, resulting in a 0% market share for the period.

This lack of activity was universal across all investor sizes. Mom-and-pop landlords (1-10 properties) made no purchases, contributing 0% of the non-existent landlord total.

Similarly, institutional investors (1,000+ properties) also recorded zero purchases, which is consistent with their complete absence from this market's ownership landscape.

The data indicates a significant pause in investor demand, with no new properties being added to landlord portfolios during the final quarter of the year.

This halt in purchasing contrasts with previous periods of activity and may signal a wait-and-see approach from local investors in response to market conditions.

The investor landscape in Franklin County is unequivocally dominated by small-scale, mom-and-pop landlords. Owners with 1-10 properties (Tiers 01-04) collectively control 99.1% of all investor-owned SFRs.

Single-property landlords (Tier 01) form the bedrock of the market, holding 516 properties, which constitutes a massive 78.7% share of the total investor portfolio. This highlights the importance of first-time and small investors to the local rental supply.

Mid-size landlords are a rarity. Tiers holding 11-100 properties are nearly non-existent, and the large landlord tier (101-1000) accounts for just 2 properties, or 0.3% of the total.

There is absolutely no institutional investor (Tier 09, 1000+ properties) presence in Franklin County, with their market share standing at 0.0%. This market is entirely driven by local and small-scale capital.

The ownership structure is highly concentrated at the smallest end of the spectrum, with two-property landlords holding 6.7% and those with 3-5 properties holding 9.1% of the inventory.

Individual investors form the foundation of the Franklin County market, holding a commanding 85.5% share (441 properties) in the single-property tier.

This pattern of individual dominance continues into the two-property tier, where individuals own 33 properties (75.0%) compared to 11 owned by companies (25.0%).

A significant shift in ownership structure occurs in the 6-10 property tier. Here, companies become the majority owners, holding 24 properties, which represents an 80.0% share of that segment, while individuals own just 6 properties (20.0%).

This crossover from individual to company-majority ownership indicates that as portfolios grow beyond five properties, investors in this market tend to adopt more formal, corporate structures for their holdings.

Even in the 3-5 property tier, individuals maintain strong control, owning 48 properties (80.0%), reinforcing that the sub-five property market is the domain of personal investment.

Investor activity in Franklin County is geographically concentrated, with the 47012 zip code (Brookville) serving as the hub for real estate investing. It contains 343 investor-owned properties, far surpassing any other area in the county by volume.

The second most active area by count is the 47024 zip code (Laurel) with 85 investor properties, followed by 47030 (Metamora) with 55 properties.

However, the highest rates of investor penetration are found in smaller communities. The 47240 zip code has the highest concentration with 21.6% of its housing stock owned by investors.

Close behind are the 47035 and 47353 zip codes, with investor ownership rates of 21.2% and 21.1%, respectively. This highlights that while volume is in Brookville, market saturation is higher elsewhere.

This distinction between high-volume and high-percentage areas suggests different types of investment opportunities, from the larger rental market in Brookville to potentially less competitive, higher-yield niches in surrounding zip codes.

Despite a pause in the most recent quarter, historical data shows that landlords in Franklin County are strong net buyers, consistently adding more properties to their portfolios than they sell.

In 2025, landlords acquired 34 properties while selling only 9, demonstrating a clear strategy of accumulation and a positive outlook on the local rental market.

This trend holds true on a quarterly basis. In Q3 2025, investors were net buyers by a margin of 8 properties (12 buys vs. 4 sells), and in Q2 2025, they were net buyers by 6 properties (8 buys vs. 2 sells).

The year prior, in 2024, the pattern was similar, with investors acquiring 16 properties and selling 9, resulting in a net gain of 7 properties for their portfolios.

Given the market is composed almost entirely of mom-and-pop investors, this activity reflects the collective sentiment of small, local operators who continue to build their holdings over time.

In the fourth quarter of 2025, the investor market in Franklin County was dormant. Landlords were not party to any of the 9 SFR transactions that occurred, bringing their market share of transactions to 0%.

This inactivity spanned the entire spectrum of investor sizes. Mom-and-pop landlords (Tiers 01-04), who dominate ownership in the county, recorded zero transactions during this period.

Unsurprisingly, institutional investors (Tier 09) also had no transaction activity, aligning with their 0% ownership stake in the market.

The data shows no inter-landlord trading, with 0% of transactions being properties bought from other landlords. This suggests a lack of portfolio churning or repositioning among existing owners.

The complete absence of landlord transactions in Q4 marks a significant deviation from the net-buying patterns observed in previous quarters and years, suggesting a temporary retreat from the market.