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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
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…
#1 Ranked: Evansville — cost index 59, 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
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.
0 of 3 cities keep rent under 30% of $40K. 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.
Evansville earns its position at #1 through a combination that's hard to replicate. The 59 cost index sits 52 points below the national baseline, and the $52,251 median income means purchasing power here is amplified by the low cost base. Homes list at $194,790 — $272,580 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 59, while Healthcare trails at 92 (and that gap widens if you factor in state taxes).
On a $40K salary, the key number is $1,000/month — that's 30% of gross, the standard affordability line. Evansville ($1,010/mo, 30%), Fort Wayne ($1,160/mo, 35%), Indianapolis ($1,356/mo, 41%) all clear that bar. After federal tax, FICA (7.65%), and state income tax, estimated take-home ranges from $31,152 to $31,152/year across these top picks.
That said, Indiana — solidly affordable Rust Belt living. The 3 cities we track here average a cost index of 69 and median income of $58,513. It's a clear buyer's market compared to national norms. The typical rent runs $1,175/month, which is $720 less than the national median.
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.
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.
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Evansville | $1,010 | 30% | 59 | Details |
| 2 | Fort Wayne | $1,160 | 35% | 68 | Details |
| 3 | Indianapolis | $1,356 | 41% | 79 | Details |
115,332 residents · Indiana
Here's Evansville by the numbers — and there's a lot to like (and a little to watch). Cost index: 59. Rent: $1,010/month — this is the part where it gets real — . Income: $52,251/year. Home price: $194,790. Population: 115,332. The strongest category is Housing at 59; the most expensive is Healthcare at 92. Translate that rent to annual numbers, and residents are saving renters $10,620 per year vs. the national median. That's a spread that makes moving costs look trivial.
269,994 residents · Indiana
Here's Fort Wayne by the numbers — and there's a lot to like (and a little to watch). Cost index: 68. Rent: $1,160/month. Income: $60,293/year. Home price: $238,593. Population: 269,994. The strongest category is Housing at 68; the most expensive is Healthcare at 94. Translate that rent to annual numbers, and residents are saving renters $8,820 per year vs. the national median. On a teacher's salary, this difference is the line between paycheck-to-paycheck and comfortable.
879,293 residents · Indiana
Dive into Indianapolis's numbers: cost index 79 (32 points below national average), rent $1,356/month, income $62,995, and a home price of $226,528. The city's cost profile isn't flat — Housing is the cheapest category at 79, while Healthcare runs 96. As a major city with 879,293 residents, amenities and job markets are robust.
| 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 |
Evansville ranks #1 in Indiana for this analysis with a cost index of 59 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 59 and rent of $1,010/mo, while Indianapolis (ranked #3) has a cost index of 79 and rent of $1,356/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 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.