Affordable cost of living, thriving job opportunities, and quality education have motivated more than 29,925 people to move to Indiana. But it’s not that easy for everyone. With a median home price of $245,844 Indiana can be expensive.
Should that stop you from moving to the Hoosier State? Absolutely NOT!
Cities like Peru and Gary offer several budget-friendly options. While Gary offers a cost of living 12.7% lower than the national average, the median home price in Peru is $135K.
Whether you’re a retiree or a young professional looking for exciting opportunities, Indiana has affordable housing for everyone. Let’s explore some of the cheapest places to live in Indiana!
4 Reasons to live in Indiana 🌆
- Cheaper Houses: The median home sale price in Indiana is ~$245K but you can get houses between $228K and $356K in cities like North Adams, Chicopee, and Fitchburg.
- Tax Benefits: The cap on the rent deduction has increased to 4,000, offering additional relief for renters.
- Affordable Transportation: Transportation in cities that are listed below is up to 14.6% lower than the national average.
- Cheaper Rentals: The rent prices of these cities are lower than the national average. You can save up to $460 per month in rent.
Cheapest Places to Live in Indiana in 2024
This list provides insights into the average household income, median listing price, population, unemployment rate, and poverty rate of the cities.
| City | Median Household Income | Median Home Value | Population | Unemployment Rate | Poverty Rate |
|---|---|---|---|---|---|
| Gary | $34,085 | $81,441 | 69,739 | 13% | 32% |
| Marion | $37,835 | $124,799 | 27,757 | 5.5% | 28.5% |
| Anderson | $40,632 | $130,630 | 54,459 | 6.8% | 22.1% |
| Peru | $42,668 | $135,171 | 11,123 | 5.2% | 22.9% |
| Logansport | $41,905 | $146,787 | 18,471 | 4.4% | 17.3% |
| Muncie | $36,661 | $143,301 | 65,571 | 5.5% | 30.4% |
| Richmond | $41,569 | $144,037 | 35,854 | 5.5% | 22.7% |
| Kokomo | $53,967 | $164,738 | 59,890 | 7.0% | 14.75% |
| Elkhart | $46,534 | $210,115 | 53,484 | 5.3% | 19,58% |
| Mishawaka | $51,543 | $199,394 | 50,842 | 5.6% | 15.3% |
10 Cheapest Places to Live in IN
The cost of living in Indiana is 8% lower than the national average. The 38th-largest state is the home to some of the nation’s most expensive cities. However, amidst this disparity, the cities in Indiana has several affordable living options.
1. Gary
| 🟢 Cost of Living Compared to National Average | 12.7%⬇️ |
| 🏡 Median Home Price | $81,441 |
| 💲 Median Rent | $1,200 |
| 🌅 Known For | Tourist Hotspot |
Gary is one of the cheapest locations to live in Indiana. Its median house rent ranges from $675 – $6,887. It also offers affordable grocery which is 9.3% lower than the national average.
Gary stands out as a budget-friendly city. The city is renowned for its vibrant arts and culture scene. It attracts visitors with its rich cultural offerings. Apart from its culture, the city is also known for its employment opportunities. Companies like Crown Corr and Cws Dedicated Service, Inc contributes to city’s wealth.
» Homes for Sale in Gary, IN: Find your cheap and affordable homes for sale Indiana.
2. Marion
| 🟢 Cost of Living Compared to National Average | 31.7%⬇️ |
| 🏡 Median Home Price | $124,799 |
| 💲 Median Rent | $950 |
| 🏞️ Known For | Basketball Hall of Fame |
Marion is one of the most affordable cities in Indiana with an average home rent of $950. It also offers affordable transportation which is 38% lower than the national average.
The city is situated on the eastern bank of the Connecticut River and offers a desirable living environment for its residents. Marion is a great place for people looking to buy a home as it also offers employment opportunities for job seekers. Some of the top employers in the city are Marion General Hospital and TLC Management.
» Homes for Sale in Marion, IN: Browse thousands of cheapest homes to live in Indiana.
3. Anderson
| 🟢 Cost of Living Compared to National Average | 21.1%⬇️ |
| 🏡 Median Home Price | $130,630 |
| 💲 Median Rent | $895 |
| 🏖️ Known For | Festival Celebration |
With rental costs 21.1% below the national average, Anderson stands as one of the most affordable cities to live in Indiana. The house rent price is between $475 – $3,000. Also, the city offers food expenses of $556 for one individual.
Anderson is a cultural hub with world-class theaters, live music, art shows, and museums. This makes it an appealing destination for residents. Additionally, major employers like CarterExpress and Orian Rugs contribute significantly to Anderson’s robust economy. It provides employment opportunities and fostering a thriving business environment in this area.
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4. Peru
| 🟢 Cost of Living Compared to National Average | 28.6%⬇️ |
| 🏡 Median Home Price | $135,171 |
| 💲 Median Rent | $650 |
| 🏖️ Known For | Westover Air Reserve Base |
Peru offers budget-friendly living with a median rent of $650, which is $856 lower than the national median. With healthcare costs being 4.7% lower than the national average, the city stands out as one of Indiana’s most inexpensive places to live for retirees.
Peru is known for its industrial history and scenic location. The city is home to Westover Air Reserve Base, contributing to the city’s economic and cultural identity.
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5. Logansport
| 🟢 Cost of Living Compared to National Average | 29.7%⬇️ |
| 🏡 Median Home Price | $146,787 |
| 💲 Median Rent | $785 |
| 🎨 Known For | Industrial City |
Logansport’s cost of living is 29.7% lower than the national average. The average transportation expenses are 32.8% lower than the national average.
Loganspoet’s affordable food, health, housing, and transportation facilities make the city one of the cheapest places to live in Indiana. Moreover, the city is known for job offers with employers like Cal-Comp USA and Carter Fuel Systems. So, if you are planning to move, Logansport is a right option for you and your family.
» Homes for Sale in Logansport, IN: Explore all the affordable homes in one of the cheapest city in Indiana to live.
6. Muncie
| 🟢 Cost of Living Compared to National Average | 26.7%⬇️ |
| 🏡 Median Home Price | $143,301 |
| 💲 Median Rent | $1,050 |
| 🏫 Known For | Furniture Manufacturing |
The house rent in Gardner is between $410 – $2,500. You can comfortably live in this city with an average household income of $40,309. With 26.7% low cost of living than the national average, the city is best for people who are looking budget friendly living.
Muncie is a compelling real estate choice for outdoor enthusiasts seeking affordable living in Indiana. This city is known for being affordable. Houses don’t cost a lot, and the everyday expenses are low. Along with affordable housing, the city also boasts a thriving job market. Major employers such as The Townsend and Ontario Systems provide employment opportunities and contribute to the city’s economic vitality.
» Homes for Sale in Muncie, IN: Find a home in one of the largest cities in Indiana.
7. Richmond
| 🟢 Cost of Living Compared to National Average | 29.4%⬇️ |
| 🏡 Median Home Price | $144,037 |
| 💲 Median Rent | $750 |
| 🖼️ Known For | Opportunity Zone |
Richmond is indeed one of the best places to live in Indiana, with a median home price of $144,037. The monthly expenditure on food for an individual amounts to $568. This makes it one of the most budget-friendly options in Indiana.
Richmond is renowned for its stunning natural beauty. The city provides a great place to live, work, and play, emphasizing its attractive and diverse geographical features.
In addition to its natural attractions, Richmond boasts a robust economy, providing ample employment opportunities. The prominent companies that offers jobs in the city are Primex Plastics and Richmond Baking Co.
» Homes for Sale in Richmond, IN: Save money on your home purchase. Explore cheap houses in Indiana
8. Kokomo
| 🟢 Cost of Living Compared to National Average | 23.2%⬇️ |
| 🏡 Median Home Price | $164,738 |
| 💲 Median Rent | $957 |
| 👩💻 Known For | Technology Innovations |
Kokomo offers an attractive combination of affordability and opportunity. The median home price of $164,738 and a cost of living 23.2% lower than the national average. This makes it one of the cheapest and best cities to live in IN. Housing costs in Kokomo are also remarkably 57.2% lower than the national benchmark. This makes home-ownership a realistic goal for many residents.
In addition to its affordable housing, Kokomo boasts a robust economy driven by major employers like Haynes International and Huston Electric. These companies offer a variety of job opportunities for residents, contributing to the city’s overall prosperity.
» Homes for Sale in Kokomo, IN: Find affordable and best houses in Indiana.
9. Elkhart
| 🟢 Cost of Living Compared to National Average | 17.4%⬇️ |
| 🏡 Median Home Price | $210,115 |
| 💲 Median Rent | $800 |
| 🎷 Known For | Manufacturing Musical Instruments |
The cost of living in Elkhart is 17.4% lower than the national average, making it an affordable place to live in Indiana. Rental costs are also relatively cheaper rages from $550 – $2,500 with a median rent of $800.
The food expenditure in this city is $503 for one individual and healthcare costs are 6.6% lower than the national average. Additionally, city presents a compelling option for those who are seeking jobs. Elkhart offers ample of job opportunities with employers such as Patrick Industries and Dexter.
» Homes for Sale in Elkhart, IN: Looking for a budget-friendly place to live? Check cheap areas to live in Indiana.
10. Mishawaka
| 🟢 Cost of Living Compared to National Average | 21%⬇️ |
| 🏡 Median Home Price | $199,394 |
| 💲 Median Rent | $1,200 |
| 🍬 Known For | Peppermint |
Mishawaka offers affordable housing, which is 44.8% lower than the national median. With grocery costs being 8.5% lower than the national average, the city stands out as one of the most inexpensive places to live in Kentucky.
The job market in Mishawaka is relatively small, but there are a number of job opportunities in the retail, healthcare, and education sectors. One of the top employers in the city is Nyloncraft which is a automotive industry company.
» Homes for Sale in Mishawaka, IN: Search Indiana houses for sale.
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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.
» Free Home Value Estimator: Get an estimate of property values with Indiana’s most accurate home value estimator.
Find Homes for Sale in IN Under Your Specific Budget
» Best Rental Websites in America: Can’t find your dream home within your budget? Explore thousands of listings on the nation’s top rental websites.
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Research Methodology
We’ve created this list by considering the cost of living, median home price, and rental price range. We have also accounted for the population, median household income, poverty rate, and unemployment rate in these cities.
To compile this list of the cheapest areas to live in Indiana, we have drawn data from the Economic Research Institute, World Population Review, Rent Cafe, and Zillow, Best Places.
FAQs
Where are the cheapest places to live in Indiana?
The cheapest place to live in Indiana is Gary. It offers one of the most affordable housing in the state, which is 80.4% lower than the national average. Apart from this, Marion and Anderson are also cheap places to live in Indiana.
» 10 Cheapest Places to Live in Indiana: Find out the other cheapest places to live in Indiana!
Is Indiana the cheapest place to live in?
No, it is not. The median home value is $245,844. 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.
Where is the best place to live in Indiana?
The best place to live in Indiana is Zionsville, followed by Westfield, Indianapolis, Fort Wayne, Bloomington, Carmel, and South Bend.
