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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Indiana is a genuine bargain: 3 of the 3 cities in this ranking come in below the national cost-of-living average. Indianapolis leads at an index of 92 with rent at just $1,356/month — 28% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
#1 Ranked: Indianapolis — cost index 92, rent $1,356/mo, income $62,995
3 of 3 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
Indiana is a genuine bargain: 3 of the 3 cities in this ranking come in below the national cost-of-living average. Indianapolis leads at an index of 92 with rent at just $1,356/month — 28% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
So, Indianapolis. Cost index of 92, rent at $1,356/month. It's lower than the national average. Median income is $62,995, which is below the national median. Nothing too surprising there (not adjusted for inflation, but still telling).
Value = income ÷ cost index. The national benchmark ratio is 718. Indianapolis delivers 685 — -5% more purchasing power per dollar earned. This metric catches cities that expensive-but-high-paying rankings miss: a $90K salary in a city with index 80 buys more than $120K in a city with index 150. Below the radar, but not for long.
Still, the overall picture holds: Across Indiana, the average cost of living index is 89 — 23 points below the national median. Known for solidly affordable Rust Belt living, the state offers 3 tracked cities with median rents averaging $1,175/month. That's $720 less than the national average of $1,895. That kind of value just doesn't show up in expensive metros.
What to do with this data: use the ranking as a shortlist, then dig into the city profiles for trend lines and category breakdowns. The difference between #1 and #5 is often smaller than the difference between "good on paper" and "actually fits my life." Compare your top picks with our calculator to see real take-home numbers.
| Rank | City | Value Ratio | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Indianapolis | 685 | 92 | $1,356 | Details |
| 2 | Fort Wayne | 670 | 90 | $1,160 | Details |
| 3 | Evansville | 615 | 85 | $1,010 | Details |
879,293 residents · Indiana
Indianapolis earns its position at #1 through a combination that's hard to replicate. The 92 cost index sits 20 points below the national baseline, and the $62,995 median income means purchasing power here is amplified by the low cost base. Homes list at $226,528 — $240,842 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 80, while Healthcare trails at 95.
269,994 residents · Indiana
Why Fort Wayne ranks #2: the numbers tell a clear story. At 90 on the cost index, residents save roughly 22% less than the typical American. Rent sits at $1,160/month — whether that matters depends on your situation — while the median household pulls in $60,293/year. The Housing category is particularly strong at 74, though Healthcare (92) lags behind. Home prices average $238,593 — $228,777 below the national median.
115,332 residents · Indiana
The #3 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.
Value ratio = median household income ÷ cost of living index. A higher ratio means each dollar of income buys more locally. This captures purchasing power better than looking at income or cost alone. 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.
Indianapolis ranks #1 in Indiana for this analysis with a cost index of 92 and median income of $62,995.
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.
Indianapolis (ranked #1) has a cost index of 92 and rent of $1,356/mo, while Evansville (ranked #3) has a cost index of 85 and rent of $1,010/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 Indianapolis is $1,356/month as of 2026, based on Zillow's Observed Rent Index. This is $539 below the national median of $1,895/month.
The median home price in Indianapolis is $226,528, which is 3.6× 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.