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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. That's more or less in line with the region. Indianapolis leads at an index of 79 with rent at just $1,356/month — 28% less than the $1,895 national median. Here are the numbers, source…
Indiana is a genuine bargain: 3 of the 3 cities in this ranking come in below the national cost-of-living average. That's more or less in line with the region. Indianapolis leads at an index of 79 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 79 — for better or worse — , rent at $1,356/month. It's lower than the national average. Median income is $62,995, which is below the national median. Take it or leave it — the data is what it is.
Frankly, it's worth mentioning — though it's outside our data model — that cities with these economics tend to attract remote workers, which can push prices up over time.
The state-level view adds helpful context here. Across Indiana, the average cost of living index is 69 — 42 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's a margin of safety most budgets don't have.
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. That's not nothing.
#1 Ranked: Indianapolis — cost index 79, rent $1,356/mo, income $62,995
3 of 3 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
879,293 residents · Indiana
Indianapolis earns its position at #1 through a combination that's hard to replicate. The 79 cost index sits 32 points below the national baseline, and the $62,995 median income means purchasing power here is amplified by the low cost base. That tracks. Homes list at $226,528 — $240,842 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 79, while Healthcare trails at 96.
269,994 residents · Indiana
So, Fort Wayne. Cost index of 68, rent at $1,160/month. It's lower than the national average. Median income is $60,293, which is below the national median. That tracks. The definition of value.
115,332 residents · Indiana
Evansville is one of the cheaper options here. Pretty standard for this type of city. Rent is $1,010/month, which is lower than most cities in this ranking. The cost index is 59. Income sits at $52,251. That's more or less in line with the region.
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Indianapolis | 79 | $1,356 | Details |
| 2 | Fort Wayne | 68 | $1,160 | Details |
| 3 | Evansville | 59 | $1,010 | Details |
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Indianapolis | 3.05% | 7% | 0.78% | $47,343 |
2Fort Wayne | 3.05% | 7% | 0.78% | $47,343 |
3Evansville | 3.05% | 7% | 0.78% | $47,343 |
Cities are ranked by effective property tax rate within Indiana. Property taxes can vary significantly between municipalities even within the same state due to local levies, school districts, and assessment practices. 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 79 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 79 and rent of $1,356/mo, while Evansville (ranked #3) has a cost index of 59 and rent of $1,010/mo — a 20-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.