Over the weekend, I opened the envelope containing my 2025 property tax assessment and immediately noticed something was off: my home’s assessed value had jumped.
By 25%
After checking our neighborhood Facebook group, it became obvious that other homeowners were seeing the same thing. Dozens of comments popped up from neighbors who’d received their Form 11 and were equally surprised.
By Monday morning, I saw that our CEO had posted in our investor Facebook group about the same trend. Several members said their investment property assessments had gone up dramatically—some even mentioned their duplexes had nearly doubled in value compared to last year.
Clearly, this wasn’t just a blip. It’s a statewide pattern—and one that real estate investors need to pay attention to.
Why Property Tax Assessments Are Rising for Indiana Investors
Indiana uses a market-based assessment model, which means property values are tied directly to local sales data. When homes in your area sell for more, your assessed value increases—even if you haven’t done anything to your own property.
This year, those increases are showing up in the 2025 Form 11s, and the jump is hitting investment property owners especially hard. Rental homes, small multifamily units, and even flips that haven’t yet sold are all being revalued based on recent neighborhood comps.
If you’re an investor in Indiana, that means higher holding costs, tighter margins, and more pressure on your bottom line.
What Is the Tax Assessment—and Why Real Estate Investors Shouldn’t Ignore It
This notice tells you how much your property is now worth in the eyes of the county—and sets the stage for your upcoming property tax bill.
For real estate investors, especially those managing multiple rental properties or rehabs, ignoring the assessment can be a costly mistake. A significant increase in assessed value could easily shave thousands off your annual cash flow if you’re not planning for it.
How Real Estate Investors Can Respond to an Assessment Hike
If your investment properties just jumped in value, here’s what to do:
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Review each Form individually: Don’t assume they’re all accurate. Assessors may not have the full picture of property condition, tenant status, or neighborhood trends.
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Compare with comps: Pull recent sales or work with your agent to find nearby homes that justify a lower valuation.
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Appeal if needed: Investors have the same right to appeal as homeowners. If you believe your assessment is inflated, gather supporting documentation and file with the county—usually within 45 days of the Form 11 date.
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Update your pro formas and cap rate projections: Rising property taxes will eat into NOI. Adjusting your calculations now keeps your investment strategy honest and adaptable.
Legislative Context: Indiana Tax Relief... But Not for Everyone
Indiana lawmakers passed Senate Bill 1 earlier this year, offering targeted property tax relief, including a tax credit for qualifying homeowners. But many investment properties don’t qualify for that homestead relief.
That means landlords, flippers, and out-of-state investors may see the full impact of these tax hikes—without any buffer.
And while the bill is a sign that tax issues are finally gaining traction at the state level, no comprehensive changes have been made yet to the way investment property assessments are calculated in Indiana.
Bottom Line: If You Own Investment Property in Indiana, Check Your Form 11—Now
This year’s property tax assessment increases are a wake-up call for Indiana investors. If you own rental properties, small multifamily units, or even single-family homes you plan to hold, your margins could be affected by a sudden jump in taxes.
- Review every Form 11 across your portfolio
- Don’t assume your assessed values are final—appeals are possible
- Adjust your cash flow models and acquisition strategy accordingly
Ignoring this now could lead to a painful surprise when tax bills arrive later this year.
