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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
0 of 3 cities keep rent under 30% of $40K. And generally speaking, the 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market (and that gap widens if you factor…
#1 Ranked: Evansville — cost index 85, rent $1,010/mo, income $52,251
0 of 3 cities keep rent under 30% of $40K
0 of 3 cities keep rent under 30% of $40K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Evansville | $1,010 | 30% | 85 | Details |
| 2 | Fort Wayne | $1,160 | 35% | 90 | Details |
| 3 | Indianapolis | $1,356 | 41% | 92 | Details |
0 of 3 cities keep rent under 30% of $40K. And generally speaking, the 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market (and that gap widens if you factor in state taxes).
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market. We ran the numbers on 3 cities in Indiana using 2026 census, rent, and salary data. Evansville comes out on top — here's the full ranking and analysis.
The #1 spot goes to Evansville, and the breakdown explains why. Renters here pay $1,010/month — saving renters $10,620 per year compared to the national average. Meanwhile, Housing is the standout at index 63, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 88. At a 23% rent-to-income ratio, there's genuine breathing room in the average household budget.
Contrast this with: State context matters: Indiana's 3 cities average a 89 cost index with $1,175/month median rent and $58,513 household income. Solidly affordable Rust Belt living. The city with the best trajectory is buried at #4. The spotlights below explain why.
Bottom line: Evansville leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market.
Rent in #1-ranked Evansville has increased from $951 to $1,010/mo over the past 12 months — a 6% increase. Rising costs may erode its top ranking over time.
115,332 residents · Indiana
Here's Evansville by the numbers — and there's a lot to like (and a little to watch). And most of the time, cost index: 85. Rent: $1,010/month. Income: $52,251/year. Home price: $194,790. Population: 115,332. The strongest category is Housing at 63; the most expensive is Healthcare at 88. Translate that rent to annual numbers, and residents are saving renters $10,620 per year vs. the national median. For freelancers and gig workers with variable income, this cushion is everything.
269,994 residents · Indiana
Fort Wayne earns its position at #2 through a combination that's hard to replicate. The 90 cost index sits 22 points below the national baseline, and the $60,293 median income means purchasing power here is amplified by the low cost base. Homes list at $238,593 — $228,777 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 74, while Healthcare trails at 92.
879,293 residents · Indiana
What does daily life actually cost in Indianapolis? Start with the 26% rent-to-income ratio — tight but manageable for most households. On the category level, Housing (index 80) is where the real savings show up, while Healthcare (index 95) is the line item most likely to surprise newcomers. Income at $62,995 and homes at $226,528 round out a profile that ranks #3 for clear reasons.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Evansville | 3.05% | 7% | 0.78% | $31,152 |
2Fort Wayne | 3.05% | 7% | 0.78% | $31,152 |
3Indianapolis | 3.05% | 7% | 0.78% | $31,152 |
We calculate what percentage of a $40K gross salary goes to median rent. Cities where rent consumes less of your paycheck rank higher. We also factor in estimated take-home pay after federal taxes, FICA (7.65%), and state income tax. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Evansville ranks #1 in Indiana for this analysis with a cost index of 85 and median income of $52,251.
Yes. On a $40K salary in Evansville, rent would consume about 30% of your gross monthly income. Financial experts recommend keeping rent under 30%. It's tight — consider a roommate or nearby suburb.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Evansville (ranked #1) has a cost index of 85 and rent of $1,010/mo, while Indianapolis (ranked #3) has a cost index of 92 and rent of $1,356/mo — a 7-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Evansville is $1,010/month as of 2026, based on Zillow's Observed Rent Index. This is $885 below the national median of $1,895/month.
After federal taxes, FICA (7.65%), and 3.05% state income tax, estimated take-home on $40K in Evansville is approximately $31,152/year ($2,596/month). After median rent of $1,010/month, you'd have roughly $19,032/year for all other expenses.
The median home price in Evansville is $194,790, which is 3.7× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
Indiana has a 3.05% state income tax rate. Combined state and local sales tax averages 7%, and the effective property tax rate is 0.78%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.