Choosing a market for out of state investing

[Derek Elliott]

Hey everyone. 

I'm in the early stages of picking an out of state market to invest, and could use a little guidance. I've zeroed in on the Indianapolis metro area. Population seems to be on the rise and there are a few submarkets that I've found that appear to have decent rent to price ratios. 

So my question is:

How much should I be paying attention to the percentage of residents who own vs. rent their home? For example, let's say I'm doing research on a specific town/neighborhood and I see that 93% of people own their homes and only 7% rent. Does that mean demand for rental properties in that area is low, and should therefore scare me off? 

Would love to hear everyone's thoughts! 

Thanks, 

Derek