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 2024
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 is one of the cheapest locations to live in Indiana. It also offers affordable groceries 9.3% lower than the national average. Gary boasts a vibrant arts scene, notably through the Miller Beach Arts & Creative District. Companies like Crown Corr and Cws Dedicated Service, Inc contribute to the city’s wealth. The city’s proximity to natural attractions like the Indiana Dunes National Park enhances its appeal.
» Gary Homes for Sale: Find your cheap and affordable homes for sale 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’s proximity to major cities like Indianapolis and Fort Wayne makes it accessible for travelers. It also offers affordable transportation which is 38% lower than the national average. The city hosts several key employers Marion General Hospital and TLC Management. Indiana Wesleyan University is the top institution in this area.
» Marion Homes for Sale: Browse thousands of in one of the cheapest city 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 with Anderson Symphony Orchestra as their top attraction. The city is home to Anderson University, ideal for young adults. The city offers a variety of dining options, including Mexican cuisine at Fiesta Bar & Mexican Cuisine for foodies. Moreover, Anderson Roll Arena is a family-friendly spot for roller skating and other gathering events.
» Anderson Homes for Sale: Find homes in one of the cheapest place 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, making it ideal for retirees. The city is home to Westover Air Reserve Base, contributing to the city’s economic and cultural identity. Peru is also known for its Circus City Festival, featuring circus performances, parades, and family-friendly activities.
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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. The city boasts attractions like the Cass County Dentzel Carousel, one of the attractions here. Outdoor enthusiasts can enjoy recreational activities such as hiking and fishing at France Park. Key employers like Cal-Comp USA and Carter Fuel Systems are prominent here. Additionally, the city is home to Ivy Tech Community College for students.
» Logansport Homes for Sale: Explore all the affordable homes in one of the cheapest city in Indiana to live.
#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 $40,309. For nature enthusiasts, Cardinal Greenways is a great option for walks. Muncie Children’s Museum is one of the interactive museums that educate children. Major employers such as The Townsend and Ontario Systems provide employment opportunities and contribute to the city’s economic vitality.
» 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 offers a variety of attractions for visitors. Nature enthusiasts can explore Thistlewaite Falls, a picturesque waterfall ideal for family outings. The city also boasts the Model T Museum, showcasing automotive history, and the Wayne County Historical Museum, which delves into the region’s rich past.
» Richmond Homes for Sale: Save money on your home purchase. Explore cheap houses in Indiana
#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
The median household income in Kokomo is around $54,195, and the housing costs are 57.2% lower than the national median. Major employers include Fiat Chrysler Automobiles and Haynes International. Several educational institutions, including Indiana University Kokomo, provide quality education for students.
» Kokomo Homes for Sale: Find 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
Transportation expenses in Elkhart are 22.6% below the national average, and healthcare costs are 6.6% less expensive. For an individual, the average food spending in the city is $509. Furthermore, Elkhart provides plenty of job opportunities, with companies like Patrick Industries and Dexter, making it a great place for professionals.
» Elkhart Homes for Sale: Looking for a budget-friendly place to live? Check cheap areas 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 features affordable housing, with costs that are 44.8% lower than the national median. The city’s grocery prices are also 8.5% below the national average, making it one of the most cost-effective places to reside in Indiana. Also, with a crime rate of 13.4% compared to the national average of 22.7%, Mishawaka is considered a very safe community.
» Mishawaka Homes for Sale: Search homes in one of the cheapest and safest place 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 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 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.
Where 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.
