Selecting the right indoor propane tankless water heater depends on several key factors, including household size, water demand, efficiency, and installation requirements. This guide will help you make an informed decision before making your purchase.
1. Determine the Right Size & Flow Rate
The flow rate of a propane tankless water heater is measured in gallons per minute (GPM) and determines how much hot water the unit can provide at one time.
Recommended Flow Rates Based on Household Size:
- 1-2 people: 3-5 GPM (suitable for a small apartment or a single bathroom)
- 3-4 people: 5-7 GPM (suitable for 2-3 bathrooms)
- 5+ people: 8+ GPM (ideal for large homes with multiple showers and appliances running simultaneously)

✅ Tip: If you frequently use multiple showers and appliances at the same time, opt for a higher GPM rating to ensure consistent hot water supply.
2. Consider Energy Efficiency & Fuel Consumption
One of the biggest advantages of propane tankless water heaters is their high energy efficiency. Look for models with:
- Energy Star Certification – Ensures high efficiency and lower operating costs.
- Uniform Energy Factor (UEF) Rating – A rating above 0.90 means better energy savings.
✅ Tip: Higher efficiency units cost more upfront but save on propane costs in the long run.
3. Check Ventilation Requirements
Since propane combustion produces gases, indoor models need proper ventilation to safely expel fumes outside.
- Direct Venting: Uses a dual pipe system (one for fresh air intake and one for exhaust). Ideal for tightly sealed homes.
- Power Venting: Uses a single pipe for exhaust, pulling air from inside the home. Suitable for homes with good airflow.
✅ Tip: If you don’t have existing venting, factor in ventilation installation costs when budgeting.
4. Look for Key Features & Smart Technology
Modern propane tankless water heaters offer various advanced features that improve efficiency and convenience.
- Wi-Fi Connectivity – Allows remote control via smartphone apps.
- Recirculation Technology – Provides hot water faster, reducing wait times.
- Freeze Protection – Essential for homes in colder climates.
- Low NOx Emissions – Environmentally friendly models with reduced carbon footprint.
✅ Tip: Recirculating models reduce water waste and ensure hot water reaches your taps faster.
5. Compare Installation Costs
While propane tankless water heaters have a higher initial cost, they offer long-term savings in energy bills.
Cost Breakdown:
- Unit Price: $500 – $2,500 (higher-end models offer better efficiency and durability).
- Installation Cost: $1,000 – $3,500 (depends on plumbing, gas lines, and ventilation setup).
- Total Estimated Cost: $1,500 – $6,000

✅ Tip: DIY installation is not recommended unless you’re experienced with gas lines and ventilation systems. Professional installation ensures safety and efficiency.
6. Choose a Reliable Brand with a Good Warranty
Investing in a reputable brand ensures better durability and support.
Top-Rated Brands:
- Rinnai – Premium models with high efficiency & smart features.
- Takagi – Reliable, high-performance units for large households.
- Noritz – Compact and budget-friendly options.
- EcoSmart – Great for energy-conscious homeowners.
Most brands offer 5 to 15-year warranties on the heat exchanger, with 1 to 5 years on other components.
✅ Tip: Choose a model with at least a 10-year heat exchanger warranty for long-term reliability.
Final Thoughts: Which Indoor Propane Tankless Water Heater is Right for You?
The best unit for your home depends on your water demand, energy efficiency needs, and budget.
- For small homes or apartments: A 3-5 GPM model is sufficient.
- For medium-sized homes: Look for 5-7 GPM with good efficiency ratings.
- For large households: A high-capacity 8+ GPM unit with recirculating technology is ideal.
By considering flow rate, energy efficiency, ventilation, features, and installation costs, you can confidently choose the perfect propane tankless water heater for your indoor setup.
Would you like help comparing specific models? Let us know! 🔥🚰
HotStream Electric Water Heater: Seamless Hot Water Experience
One thought on “Buying Guide: How to Choose the Best Indoor Propane Tankless Water Heater”