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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Dollar for dollar, few states match Indiana's value. 3 out of 3 cities undercut the national cost index of 112. Leading the pack: Indianapolis at index 92, where median rent of $1,356/month saves renters $6,468/year versus the national median.
Dollar for dollar, few states match Indiana's value. 3 out of 3 cities undercut the national cost index of 112. Leading the pack: Indianapolis at index 92, where median rent of $1,356/month saves renters $6,468/year versus the national median.
Here's Indianapolis by the numbers — and there's a lot to like (and a little to watch). And with some exceptions, cost index: 92. Rent: $1,356/month. Income: $62,995/year. Home price: $226,528. Population: 879,293. The strongest category is Housing at 80; the most expensive is Healthcare at 95. That alone makes it worth considering. Translate that rent to annual numbers, and residents are saving renters $6,468 per year vs. the national median. This is the kind of number that should get your attention.
The ranking uses a composite of 2026 data from Census Bureau population/income surveys, Zillow rent and home price indices, BLS salary benchmarks, and Tax Foundation tax rates. That alone makes it worth considering. Indianapolis (index 92 — which, honestly, is lower than you'd expect here — , rent $1,356); Fort Wayne (index 90, rent $1,160); Evansville (index 85, rent $1,010). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons (that's pre-tax, of course).
Hard to argue with that.
Bottom line: Indianapolis 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.
#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
879,293 residents · Indiana
Real talk: the #1 spot goes to Indianapolis, and the breakdown explains why. Renters here pay $1,356/month — saving renters $6,468 per year compared to the national average. Meanwhile, Housing is the standout at index 80, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 95. A 26% rent-to-income ratio keeps most households inside the safe zone (and that gap widens if you factor in state taxes).
269,994 residents · Indiana
Real talk: the numbers for Fort Wayne are straightforward: 90 on the cost index, $1,160/month rent, $60,293 income. Nothing too surprising there. Not the most exciting entry in the list, but solid. That tracks.
115,332 residents · Indiana
Look, the numbers for Evansville are straightforward: 85 on the cost index, $1,010/month rent, $52,251 income. Not the most exciting entry in the list, but solid. Fairly typical for a city this size. No gimmicks — just good numbers.
| Rank | City | Median Income | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Indianapolis | $62,995 | 92 | $1,356 | Details |
| 2 | Fort Wayne | $60,293 | 90 | $1,160 | Details |
| 3 | Evansville | $52,251 | 85 | $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 median household income from Census ACS data. We also show cost-adjusted purchasing power (income ÷ cost index) to reveal which high-income cities actually deliver the most real-world spending power. 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.