Indiana attracts Americans from all over. And there’s a good reason why: Thriving jobs, quality education, and affordable cost of living. You can’t go wrong with the Hoosier State!
Although property prices have risen in recent years, the average home value in the top 10 cheapest cities is still only around $200,000. Marion’s cost of living is 31.7% lower than the national average, and Logansport is 29.7% more affordable than the rest of the country.
But that’s not all! Retirees can enjoy Peru’s friendly community and peaceful environment, with homes averaging a nominal $134K. Meanwhile, Gray offers a booming job market in education, healthcare, and technology, with median home prices at just $82,844.
Cheapest Places to Live in Indiana in 2025
Here’s our ranking of the most affordable places to live in Indiana. We’ve considered the average household income, median list price, median house rent, and the population of the cities.
| City | Median Home Value | Median House Rent | Cost of Living Compared to National Average | Median Household Income | Population |
|---|---|---|---|---|---|
| 1. Gary | $82,844 | $1,233 | 12.7% lower ⬇️ | $37,380 | 67,652 |
| 2. Marion | $124,529 | $961 | 31.7% lower ⬇️ | $43,349 | 28,105 |
| 3. Anderson | $127,247 | $895 | 21.1% lower ⬇️ | $47,221 | 55,199 |
| 4. Peru | $134,965 | $750 | 28.6% lower ⬇️ | $46,180 | 10,953 |
| 5. Logansport | $146,881 | $875 | 29.7% lower ⬇️ | $46,363 | 18,233 |
| 6. Muncie | $139,845 | $1,050 | 26.7% lower ⬇️ | $43,395 | 65,081 |
| 7. Richmond | $140,720 | $750 | 29.4% lower ⬇️ | $46,395 | 35,425 |
| 8. Kokomo | $164,457 | $961 | 23.2% lower ⬇️ | $54,195 | 59,890 |
| 9. Elkhart | $206,492 | $800 | 17.4% lower ⬇️ | $47,885 | 53,484 |
| 10. Mishawaka | $191,952 | $1,100 | 21% lower ⬇️ | $53,120 | 50,842 |
10 Cheapest Places to Live in Indiana
Here’s our list of 10 cities that offer affordable living options in the Hoosier State:
#1 Gary
- Median house rent is $1,233 | Rental prices range between $650 and $2,950.
- Median home value of Gary is $82,844.
- Cost of living in Gary is 12.7% cheaper than the national average.
- 3 Popular Zips in Gary, IN: 46307 | 46038 | 46143
Gary has a vibrant arts scene, popularized by the Miller Beach Arts & Creative District. Companies like Crown Corr and Cws Dedicated Service, Inc. contribute to the economy. Besides, the city’s proximity to natural attractions like the Indiana Dunes National Park enhances its appeal for families.
» Gary Homes for Sale: Explore homes in the cheapest city to live in Indiana.
#2 Marion
- Median house rent is $961 | Rental prices range between $499 and $2,700.
- Median home value of Marion is $124,529.
- Cost of living in Marion is 31.7% cheaper than the national average.
- 3 Popular Zips in Marion, IN: 46307 | 46038 | 46143
» Marion Homes for Sale: Browse thousands of properties in one of the cheapest cities to live in Indiana.
#3 Anderson
- Median house rent is $895 | Rental prices range between $500 and $2,300.
- Median home value of Anderson is $127,247.
- Cost of living in Anderson is 21.1% cheaper than the national average.
- 3 Popular Zips in Anderson, IN: 46307 | 46038 | 46143
Anderson is a cultural hub, and the Anderson Symphony Orchestra is its top attraction. The Fiesta Bar & Mexican Cuisine is a popular food joint downtown. You can also enjoy roller skating at Anderson Roll Arena with your family. The city is home to Anderson University, which makes it one of the best places to live in Indiana for young adults.
» Anderson Homes for Sale: Find homes in one of the cheapest places in Indiana to live.
#4 Peru
- Median house rent is $750 | Rental prices range between $625 and $1,600.
- Median home value of Peru is $134,965.
- Cost of living in Peru is 28.6% cheaper than the national average.
- 3 Popular Zips in Peru, IN: 46307 | 46038 | 46143
Peru offers healthcare costs that are 4.7% lower than the national average, which makes it ideal for seniors and retirees. The city is home to the Westover Air Reserve Base, which contributes to the city’s economic and cultural identity. You can also visit the Circus City Festival, renowned for parades and other family-friendly activities.
» Peru Homes for Sale: Explore homes in one of the cheapest places in Indiana for retirees.
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#5 Logansport
- Median house rent is $875 | Rental prices range between $497 and $1,100.
- Median home value of Logansport is $146,881.
- Cost of living in Logansport is 29.7% cheaper than the national average.
- 3 Popular Zips in Logansport, IN: 46307 | 46038 | 46143
Logansport is one of the cheapest cities in Indiana and is renowned for the Cass County Dentzel Carousel amusement park. You can also spend a leisurely afternoon hiking or fishing at France Park. Key employers include Cal-Comp USA and Carter Fuel Systems. Also, home to the Ivy Tech Community College, it is ideal for students and young adults.
» Logansport Homes for Sale: Explore homes in one of the most affordable cities in Indiana.
#6 Muncie
- Median house rent is $1,050 | Rental prices range between $369 and $2,975.
- Median home value of Muncie is $139,845.
- Cost of living in Muncie is 26.7% cheaper than the national average.
- 3 Popular Zips in Muncie, IN: 46307 | 46038 | 46143
You can comfortably live in Muncie with an average household income of $43,395. Visit Cardinal Greenways for a nature-walk, or the Children’s Museum with your kids. Key companies like The Townsend and Ontario Systems provide frequent local employment. These factors combined make Muncie ideal for families.
» Muncie Homes for Sale: Find a home in one of the largest cities in Indiana.
#7 Richmond
- Median house rent is $750 | Rental prices range between $325 and $1,850.
- Median home value of Richmond is $140,720.
- Cost of living in Richmond is 29.4% cheaper than the national average.
- 3 Popular Zips in Richmond, IN: 46307 | 46038 | 46143
Richmond appeals to nature lovers and history buffs alike. The Thistlethwaite Falls and Royal Botanical Gardens are ideal for a short family outing and bring you closer to the local flora. It has museums too—the Model T Museum showcases automotive history, while the Wayne County Historical Museum is another popular ode to the past.
» Richmond Homes for Sale: Explore cheap houses in this Indiana city.
#8 Kokomo
- Median house rent is $961 | Rental prices range between $367 and $3,100.
- Median home value of Kokomo is $164,457.
- Cost of living in Kokomo is 23.2% cheaper than the national average.
- 3 Popular Zips in Kokomo, IN: 46307 | 46038 | 46143
» Kokomo Homes for Sale: Find the most affordable and best houses in Indiana.
#9 Elkhart
- Median house rent is $800 | Rental prices range between $500 and $2,495.
- Median home value of Richmond is $206,492.
- Cost of living in Richmond is 17.4% cheaper than the national average.
- 3 Popular Zips in Richmond, IN: 46307 | 46038 | 46143
» Elkhart Homes for Sale: Browse homes in a budget-friendly place to live in Indiana.
#10 Mishawaka
- Median house rent is $1,100 | Rental prices range between $600 and $7,200.
- Median home value of Mishawaka is $191,952.
- Cost of living in Mishawaka is 21% cheaper than the national average.
- 3 Popular Zips in Mishawaka, IN: 46307 | 46038 | 46143
» Mishawaka Homes for Sale: Search homes in one of the cheapest and safest places to live in Indiana.
So, Where Is the Cheapest Place to Live in Indiana?
You will find cheap houses for sale in Indiana under 150K in cities like Gary, Marion, and Anderson. They offer stable job opportunities, and the cost of living is more affordable than other Indiana cities.
Cities like Elkhart and Mishawaka have a slightly expensive cost of living but provide better job opportunities. It would help if you researched the city’s home prices and living costs before relocating. Also, getting a mortgage pre-approval helps you stand out in the competition before buying a house in Indiana.
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Research Methodology
To rank the top cities in Indiana, we analyzed all the regions, evaluating them based on specific criteria. Below is a breakdown of the factors used and the sources of information that informed our rankings.
- Population: World Population Review [1]
- Median Home Price: Zillow [2]
- Median Rent: Zillow [3]
- Cost of Living: Rent Cafe [4]
Frequently Asked Questions
Where are the cheapest places to live in Indiana?
The cheapest city in Indiana to live is Gary. It offers one of the most affordable housing in the state, which is 80.4% lower than the national average. Besides, Marion and Anderson also rank among the cheap places to live in Indiana.
» 10 Cheapest Places to Live in Indiana: Find out the other cheapest places to live in Indiana.
Is it expensive to live in Indiana?
Yes, it is. The median home value is $238,934. If you're looking for cities with affordable housing and a low cost of living, you can try your luck in some of these cheapest places in America.
Which are the best places to live in Indiana for young adults?
The best place to live in Indiana is Zionsville, followed by Westfield, Indianapolis, Fort Wayne, Bloomington, Carmel, and South Bend. These cities can help you to learn more about the job market and opportunities in Indiana state.
Which Indiana city has the lowest cost of living?
Marion has the lowest cost of living, which is 31.7% and 18.4% lower than the national and state average, respectively.
