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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 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.
| 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 |
#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
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 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.
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.
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. Indianapolis (index 79, rent $1,356); Fort Wayne (index 68, rent $1,160); Evansville (index 59, rent $1,010). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
There's more to the story, though. 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 ratio is hard to beat anywhere else.
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.
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. 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
Dive into Fort Wayne's numbers: cost index 68 (43 points below national average), rent $1,160/month, income $60,293, and a home price of $238,593. The city's cost profile isn't flat — Housing is the cheapest category at 68, while Healthcare runs 94. With 269,994 residents, it balances mid-size city convenience with manageable costs.
115,332 residents · Indiana
What does daily life actually cost in Evansville? Start with the 23% rent-to-income ratio — that's the kind of margin that lets people build savings. On the category level, Housing (index 59) is where the real savings show up, while Healthcare (index 92) is the line item most likely to surprise newcomers. Income at $52,251 — we had to double-check this one — and homes at $194,790 round out a profile that ranks #3 for clear reasons (and that gap widens if you factor in state taxes).
Cities are ranked by median household income using Census ACS data. Income alone doesn't tell the full story — we also show cost of living index so you can gauge real purchasing power in each city across Indiana. 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.