Want Midwest charm without Bloomington’s high prices? Don’t give up on the dream. You can afford a house in the Hoosier State if you know where to look.
Your perfect home could be a family-friendly house in Marion or a starter home in Elkhart, Indiana’s major RV producer. If you’re retiring, look at homes for sale in Logansport to enjoy a low-cost lifestyle, with median home prices under $150,000.
After assessing hundreds of cities, we’ve ranked the 10 most affordable places to live in Indiana to help you find a home that fits your budget.
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Cheapest Places to Live in Indiana in 2026
| City | Median Home Value | Median House Rent | Cost of Living Compared to State Average | Affordability Score (out of 10) |
|---|---|---|---|---|
| 1. Richmond | $118,500 | $797 | 12% less⬇️ | 8.1 |
| 2. Marion | $107,450 | $949 | 10% less⬇️ | 7.6 |
| 3. Logansport | $120,000 | $995 | 5% less⬇️ | 7.4 |
| 4. Peru | $145,600 | $999 | 8% less⬇️ | 7.2 |
| 5. Anderson | $155,000 | $1,037 | 9% less⬇️ | 7.0 |
| 6. Kokomo | $167,750 | $1,030 | 6% less⬇️ | 6.8 |
| 7. Muncie | $125,000 | $1,199 | 4% less⬇️ | 6.8 |
| 8. Gary | $123,000 | $1,310 | 0% less⬇️ | 6.4 |
| 9. Elkhart | $174,000 | $1,127 | 2% more ⬆️ | 6.2 |
| 10. Mishawaka | $195,000 | $1,319 | 4% more ⬆️ | 5.3 |
Key Takeaways
- Richmond is the most affordable city: Richmond’s cost of living is 12% lower than the national average. With a median home price of $118,500, it is the cheapest place to live in Indiana.
- Elkhart is the best city for young professionals: Due to the robust job market and proximity to South Bend, Elkhart is a prime spot to build a career in manufacturing and related industries.
- For families, Marion is a great choice: With quality schools, safe neighborhoods, and affordable family amenities like Matter Park and the Splash House, Marion is an ideal place to raise a family on a budget.
- Retirees should consider Logansport: Retirees can enjoy a peaceful riverside lifestyle along the Wabash River, with median home prices under $150,000.
- Don’t forget rise in insurance premium: Separate flood insurance can reach or pass $1,000 per year depending on risk level and coverage choices.
How We Ranked the Most Affordable Places to Live in Indiana
To identify the cheap places to live in Indiana, we carried out an in-depth analysis using multiple reliable data sources and indicators of affordability.
Data Sources:
- Median Home Prices: We used Houzeo’s Indiana Housing Market report and double-checked the numbers with the Indiana University’s Center for Real Estate Studies.
- Median Rent: We got the rent data from C2ER, which publishes the national Cost of Living Index. This was verified every few months to make sure it’s accurate.
- Overall Cost of Living: We covered 6 big spending categories— housing, groceries, utilities, transportation, healthcare, and miscellaneous goods— from C2ER and Houzeo’s Cost of Living in Indiana Calculator. We then compared everything to the U.S. average of 100.
We studied housing data from 2022 to 2025 to identify cities that remained affordable over time, not just during short dips in prices. Furthermore, each city’s data was also cross-checked with HUD and state economic reports.
All our information is up to date as of 2025, ensuring you receive the most current insights.
Affordability Scoring:
We built a simple scoring system that focuses on what really matters:
- Median Home Price (40%)
- Median Rent (35%)
- Cost of Living (25%)
This way, we can clearly show which Indiana cities give you the best value for your money. You can also check out our score breakdown to see how each city was ranked.
Image credits: All blog images are sourced from Freepik.
10 Cheapest Places to Live in Indiana
Here’s our list of 10 cities that offer affordable living options in the Hoosier State:
Richmond, the cheapest place to live in Indiana is heaven for people who like outside fun. You can visit historical museums or visit candy factories like Uranus Fudge. Manufacturing dominates the economy. Young adults and retirees exploring homes for sale in Richmond can enjoy affordable living and a variety of activities.
- Center City/Downtown Richmond: Great place for families looking to access National Road (U.S. 40) and several cafe options like Analog Coffee. Residents also get access to services from city government offices without traveling far.
- Near the North Side Area: The near north side includes parts of the Starr Historic District. It is close to the Wayne County Historical Museum and the Historic Depot District. Residents have access to Richmond Community Schools. Nearby coffee and dining options include Roscoe’s Coffee Bar and Tap Room.
- East‑Side Area: Some district elementary options include Charles Elementary School and Vaile Elementary School. Glen Miller Park is a place to relax or play sports like disc golf or fishing at the spring-fed lake. For shopping, residents can go to Main Street.
- Job Market: Richmond’s economy leans heavily on manufacturing and health care. Key employers include Reid Health, Richmond Community Schools, SugarCreek Brandworthy Food Solutions, Richmond State Hospital, and Indiana University East.
- Recreation: Key fun spots include Glen Miller Park with tennis courts, lake, and picnic areas. Families visit Springwood Park and Middlefork Reservoir for boating and trails. Cultural sites include the Wayne County Historical Museum and Model T Museum. For sweets, try 1890s candy factories and 16 chocolate stops.
- Lower Wages: Richmond’s median household income is about $46,400. This is roughly one third below the Indiana state median and the U.S. national median.
- Narrow Industry Base: Many jobs in Richmond are in manufacturing, healthcare, and retail. Growth is slower than in larger metro areas. The city has fewer high‑wage professional or tech opportunities.
- Higher Poverty: Around 23% of Richmond residents live in poverty. This is nearly double the Indiana state average (12%) and more than twice the U.S. average (11%).
Marion has a mix of cultural sites and Cardinal Greenway trails for outdoor fun. The city has Marion Municipal Airport just 3 miles away. Meanwhile, the city offers a fare-free transit system with fixed routes (like IWU/North Marion Route). There are old to modern residential homes for sale in Marion to fit everyone’s taste.
- Shady Hills: Shady Hills is a residential neighborhood in northwest Marion with mostly single-family homes. It is close to Matter Park, which features walking trails, playgrounds, with access to the Mississinewa River. Residents often use Western Avenue and Chapel Pike for groceries and regular shopping.
- Euclid Triangle: Euclid Triangle, a small residential area offers short drives to downtown Marion. Nearby recreation options include city parks such as Charles Mill Park and 28th Street Park. The area comes under Marion Community Schools which includes school like Justice Middle.
- College Park: College Park is directly next to Indiana Wesleyan University. The neighborhood includes family homes along with student rentals. Residents have quick access to IWU classrooms, the Recreation and Wellness Center. Meanwhile, College Wesleyan Church is also nearby.
- Job Market: Marion’s city economy focuses on manufacturing, healthcare, and education. Major employers include General Motors Marion Metal Center, Marion Health hospital, Indiana Wesleyan University, and Walmart Distribution Center.
- Recreation: Marion has plenty of outdoor and cultural activities. Matter Park covers 110 acres with tennis courts and riverfront trails. Cardinal Greenway, Indiana’s longest rail-trail, offers biking and walking paths. The city also has 13 parks, a Splash House, the historic Marie Webster House, a public library, and a museum.
- High Property Crime: Homeowners face ongoing security risks and costs. Since the property crime rates exceed Indiana by approx 58% which mainly include larceny and burglary.
- Low Median Income: Marion lacks tech or finance jobs. Furthermore, even existing jobs provide a median income of $43,349, which is around 38% less than the state average.
- Tornado Risk: There has been a tornado almost every 1.5 years (47 in total) between 1954-2024. Such risks demand high insurance and repair expenses.
78 miles north of Indianapolis, Logansport is a diverse rural city with numerous parks and rivers. Residents board commercial flights at Fort Wayne International Airport (FWA), which is 60-70 miles away. There are range of houses from historic to practical modern constructions waiting for you to move in.
- Potawatomi Point: Located just east of Logansport in Cass County, this area offers affordable homes and a quiet atmosphere only 2–3 miles from town. You can enroll children in Logansport Junior High and other schools under Logansport Community School Corporation.
- Bankers Row Historic District: This neighborhood is a designated national historic area in Logansport along Eel River Avenue. It has historic late 19th and early 20th‑century Queen Anne and Italianate homes. Nearby city amenities include Riverside Park and the Cass County Dentzel Carousel along the Eel River.
- Point Historic District: This is a historic mixed residential and commercial district in central Logansport. It is part of the city’s early development near the Eel and Wabash rivers. The district is close to Riverside Park and has access to trails along the riverfront.
- Job Market: Logansport’s economy relies on manufacturing, education, healthcare, and food processing. Key employers include Materials Processing, Inc., Logansport Community School Corp, Logansport Memorial Hospital, and Tyson Fresh Meats.
- Recreation: Logansport has something for everyone. From the Batman Museum and Science Project Brewing Company to Riverside Park and Eel River kayaking, there’s plenty to do. Residents also visit nearby Blueberry Festival. Meanwhile, good local dining spots include China Lane and Bonus Pints.
- Limited Job Market: Minimal presence of high-paying industries such as tech and finance can be a big drawback for some.
- Flooding Risk: Areas near the Eel and Wabash Rivers in Logansport are in FEMA-designated floodplains. Residential blocks near these rivers inflated insurance and repair costs.
- Aging Infrastructure Risk: Areas like downtown and Eel River have century-old manholes, wooden utility poles, and pre-1950s roads, posing safety risks due to frequent maintenance needs.
21 miles away from Kokomo, Peru is a fun place for circus and museum fans. There are golfing and kayaking facilities for fun as well. The city is located 5 miles away from Peru Municipal Airport. Cheap homes for sale in Peru keep housing costs low.
- South Peru: This suburban neighborhood also known as Park View Heights has mostly 1970 -1999 single family homes. 42% residents experience short commutes (under 15 minutes) to local employers. Furthermore, the area is also close to Southside Park which features baseball fields and playgrounds.
- Oakdale: It is a residential area near central Peru with family houses. Residents prefer Oakdale for walkable distance to Maconaquah Middle School. Annual Circus City Festival events like the July street parade and circus shows are held just 1-2 miles away.
- Ridgeview: The neighborhood has ranch-style homes but also offers small houses. You can consider moving here due to proximity to Ridgeview Elementary School and Wabash Riverfront Park’s walking trails and fishing spots.
- Job Market: Peru’s economy relies on manufacturing, healthcare, and food processing sectors. Local employment is derived from Smithfield Packaged Meats, Dukes Memorial Hospital, and Bryan Steam LLC.
- Recreation: Besides parks, Peru celebrates its circus legacy at the International Circus Hall of Fame, with live shows in winter. Additionally, the city is filled with museums dedicated to aircraft and more. Don’t forget to visit Oak Hill Winery, Wabrecaish River for kayaking, and Rock Hollow Golf Club.
- Limited Amenities: For a population of 11,000, there are only around 12 restaurants and a couple of grocery stores. Residents normally drive to Kokomo for dining, shopping, and entertainment.
- Flood Risk: Peru’s housing areas near Wabash River are rated at risk of flooding by independent flood‑risk models and FEMA. As a result, residents face expensive flood insurance and repair costs.
- Limited Job Market: You will have a hard time looking for job opportunities in tech and finance. Since the city’s economy is heavily dependent on automotive manufacturing and related industries.
Anderson is one of Indiana’s most affordable cities and home to Anderson University and the Church of God headquarters. Browse homes for sale in Anderson and enjoy a balanced life—you’ll find casinos and racing tracks for fun, plus schools and historic parks for education and recreation.
- Glyn Ellen: Glyn Ellen falls within the Anderson Community School Corporation and is directly adjacent to Anderson University’s 100-acre campus. Residents have access to major city parks, including Mounds State Park, known for prehistoric Adena-Hopewell earthworks.
- Fairfax: Like many neighborhoods, Fairfax also comes under Anderson Community School Corporation. The area is near local parks such as Shadyside Memorial Park and Mounds State Park with walking trails.
- Harmeson Heights: This neighborhood is located in southern Anderson. It mostly has single-family and mid-century homes. Highland Junior High School and Anderson High School are some of the nearby schools. Furthermore, Grandview Harmon Park offer picnic shelters and playground.
- Job Market: Anderson, In has around 46,000 active jobs. These are spread across healthcare, manufacturing, and education sectors. Key employers include Nestlé, Ascension St. Vincent Anderson, Community Hospital Anderson, and Anderson Community Schools.
- Recreation: You can visit Mounds State Park for 1.25-mile hiking trails around prehistoric mounds. For casino and f live horse racing, Harrah’s Hoosier Park is open 24 hours. Rangeline Nature Preserve has mountain biking trails. Cultural attractions include Paramount Theatre.
- Crime Risk: Anderson’s overall crime rate is about 45% higher than the national average. Property crimes are the biggest contributor involving theft and burglary.
- Limited Job Market: Saica Group has announced a $110 million investment in Indiana. However, the economy is overly reliant on the healthcare sector. The limited economic diversification affect the overall growth of the city.
- Poor Roads & Blight: Anderson has deteriorating roads, sidewalks, and numerous abandoned homes. This urban decay lowers neighborhood appeal and can limit safety and investment opportunities.
Despite being one of the largest cities in north-central Indiana, Kokomo remains affordable. It features historic sites like the Elwood Haynes Museum and active shopping districts. If you are a young adult looking for manufacturing jobs, there are cheap homes for sale in Kokomo to browse.
- Indian Heights: The neighborhood is near Taylor Community Schools. For recreation, there are two neighborhood parks: Mendota Park and Mohawk Park with a basketball court and playgrounds. Jackson Morrow Park, one of Kokomo’s largest city parks, is also a short drive away.
- Wildcat: This residential area is associated with local trails and creek access near Foster Park. Residents gain access to Foster Park’s playground, skatepark, and Walk of Excellence (paved urban trail). Meanwhile, Kokomo High School and Indiana University Kokomo are a short drive away.
- Westbrook: Kokomo’s north neighborhood is perfect for those looking to buy mid-sized family homes. It is close to Kokomo High School and Highland Park which features a zipline playground, disc golf, and walking paths.
- Job Market: Kokomo’s economy centers on automotive manufacturing, healthcare, and education. Stellantis Kokomo Transmission, Community Howard Regional Health, and Haynes International are some of the biggest employers.
- Recreation: Kokomo has Memorial Park’s aquatic center, art galleries, museums like Grissom Air Museum, and more. Meanwhile, Kokomo Municipal Stadium hosts the minor Indiana State League for Jackrabbits. Shopping districts and malls draw visitors from nearby towns.
- High Violent Crime Rate: Kokomo’s violent crime rate is 485 per 100,000 individuals, 35% higher than the national average.
- Poor Education: Kokomo’s public schools rank in the bottom half of Indiana districts for combined math and reading proficiency. You might want to reconsider a different city for public education.
- Limited Economy Diversification: Kokomo’s economy is anchored in mostly manufacturing. There are limited jobs in IT, finance, and other high paying sectors.
Explore the David Owsley Museum of Art or visit the Children’s Museum with family. Muncie also offers six public libraries and 28 parks. Fort Wayne International Airport is the nearest commercial airport, approx 74 miles away.
👉If you are comfortable earning a median income of $43,395, there are cheap homes for sale in Muncie to explore.
- Sunset Knoll: The neighborhood has single-family homes and low traffic near Ball State University (BSU) campus. Storer Estates park is planned within the neighborhood which will feature playgrounds and pickleball courts.
- Pettigrew Acres: In this area, there are many suburban single-family homes near BSU University. You can enroll children in Muncie Central High School and have family outings to see Minnetrista Cultural Center’s trails and gardens..
- Johnson Woods: The neighborhood is adjacent to Sunset Knoll and BSU. It also features a pedestrian bridge connecting to Storer Estates’ upcoming three-quarter-mile asphalt trail. For your children’s education, you can consider community schools like Northside Middle or Southside Middle School.
- Job Market: Muncie’s economy revolves around education, healthcare, and manufacturing. Ball State University is the biggest employer with approximately 9,144 employees, followed by IU Health Ball Memorial Hospital (2,500), and Muncie Community Schools (approximately 490-1,020).
- Recreation: Muncie’s Minnetrista Cultural Center spans 40 acres with nature trails and art exhibits. McCulloch Park and Tuhey Park offer White River Greenway access, disc golf, and recreational activities. You can shop in Downtown Muncie or dine at local restaurants such as 7 Rock and 1925 PubHouse, along with historic establishments like Adams Street Chophouse and Vera Mae’s Bistro.
- Elevated Crime Rates: Muncie crime rate is 37.7% higher than the national average. However, violent crimes are the biggest concern for residents since these are 68% higher than the national average.
- Limited Job Diversity: The local economy heavily relies on Ball State University and manufacturing employers. IT and finance sectors are growing slowly, but opportunities remain scarce overall.
- Poor Infrastructure Quality: Roads and public infrastructure suffer from chronic under-maintenance across many neighborhoods. Residents often complain about persistent potholes and inadequate repairs citywide.
Gary, Indiana offers affordable living while providing recreational activities alongside Lake Michigan beaches. The city is connected via the South Shore Line to Chicago, making commuting feasible. For those seeking budget-friendly options, there are many homes for sale in Gary, Indiana that suit a variety of lifestyles.
- Tolleston: This neighborhood offers convenient commuting access via nearby I-94. Tolleston Park provides recreation with basketball courts, a playground, picnic areas, and a running track.
- Glen Park: The residential area in eastern Gary has family-focused streets. Residents get close access to Indiana University Northwest and the Glen Park branch of the Gary Public Library. You can also visit the nearby Community Center and enroll children in public schools like Glen Park Academy.
- Miller: Miller Beach provides over 5 miles of Lake Michigan shoreline within Indiana Dunes National Park. Marquette Park has lagoons, trails, beaches, and playgrounds. The area connects to 20+ miles of biking and hiking trails and is 35–40 minutes from Chicago via the South Shore Line.
- Job Market: Key industries in Gary, Indiana, include manufacturing and healthcare. Major employers consist of U.S. Steel Corporation at Gary Works and Methodist Hospitals at the Northlake campus, which employs over 2,000 people.
- Recreation: Besides parks like Tolleston, Gary has Lake Michigan beaches at Marquette Lagoon, and Indiana Dunes National Park with 15 miles of trails. Meanwhile, you can catch a RailCats game in the U.S. Steel Yard stadium, see live music at Hard Rock Live, grab drinks at 18th Street Brewery, or try your luck at Hard Rock Casino.
- High Property Blight: Gary has thousands of blighted properties, including nearly 7,000 thousands of abandoned structures. While the city received $12 million in 2025 for demolition efforts and is actively clearing buildings, structural hazards remain a big concern.
- Poor School Performance: Chronic absenteeism has been a major challenge in Gary schools. Attendance is improving, but the district still faces performance and accreditation concerns.
- Sparse Amenities: Gary has local shopping, dining, and entertainment options. However, residents commute to Merrillville or Chicago for major retail stores and upscale restaurants.
One of the cheapest cities in Indiana, Elkhart is part of Elkhart County (RV Capital of the World). Besides public schools, there is a big network of private schools in the city. North of Elkhart lives a 302-acre Simonton Lake, which supports boating and other recreational activities.
- Greenleaf Manor: This area has middle-income single-family homes and apartment complexes. It’s close to Pierre Moran Middle School. Walker Park and Pinewood Park are about a mile away. Local green spaces offer tennis courts, playgrounds, and basketball courts for recreation.
- East Lake Estates: This neighborhood has a lakeside suburban feel with larger lots around East Lake. Mary Feeser Elementary School is nearby as well. Boat launches for fishing and kayaking are available near the lake.
- Simonton Lake: The neighborhood has a community built around a 300+ acre Simonton Lake in northern Elkhart County. Residents enjoy boating, fishing, and swimming year-round. The area is served by Elkhart Community Schools, including Mary Feeser Elementary School.
- Job Market: Elkhart city’s economy is anchored by recreational vehicle manufacturing, with Elkhart County producing 65-80 % of RVs in the US. Major employers include RV industry firms (like Lippert Components) and healthcare providers such as Beacon Health System/Elkhart General Hospital.
- Recreation: You can boat, fish, or swim at Simonton Lake. Downtown Elkhart lets you explore the Ruthmere Museum Mansion and the Midwest Museum of American Art. For outdoor time, you can relax at Wellfield Botanic Gardens or enjoy the city’s many parks.
- High Crime Rates: Elkhart’s total crime rate is higher than national average by about 68%, with main concern for property crimes.
- Narrow Job Diversity: Employment hinges overwhelmingly on RV manufacturing and suppliers. There are opportunities in healthcare. However, in IT, finance, and retail, the jobs are limited.
- Harsh Winters: Long, cold winters with heavy snowfall can limit outdoor activity and increase your heating and home maintenance costs.
Mishawaka, known as the Princess City, offers affordable housing options in Indiana. If you fancy a city with more than 25 parks, summer concerts, and old fashion neighborhoods, try exploring homes for sale in Mishawaka. The city also has a big ice skating rink along with a popular Farmers Market.
- Reverewood: This residential neighborhood has tree-lined streets and single family homes. It connects residents to George Wilson Park for playgrounds and disc golf. Plus, Mishawaka High School, Penn High School, and Bethel University, all are on short drivable distances.
- Twin Branch: Twin Branch is a suburban neighborhood. Twin Branch Park in the area offers playgrounds, soccer fields, and open green space. Twin Branch Elementary School serves the neighborhood. Meanwhile, South Bend International Airport is about 7–9 miles west.
- Beiger Mansion: The Beiger Mansion area features historic homes and mature trees. Residents enjoy Central Park and the St. Joseph River, which provides walking paths, pavilions, and riverfront recreation. Major local employers like Beacon Health System are nearby as well.
- Job Market: Mishawaka’s job market is supported by manufacturing, healthcare, and logistics. Major employers are AM General, Beacon Health System, Nyloncraft, and Daman Products.
- Recreation: Mishawaka has over 25 parks and green spaces connected by the Mishawaka Riverwalk, a riverside trail along the St. Joseph River. Featured outdoor spots include Central Park and Shiojiri Niwa (Japanese garden), and farmers market.
- Limited Job Concentration: While there are jobs in healthcare, manufacturing, education, and logistics, employment is concentrated in a few major sectors. Career options in high-tech, finance, or creative industries are less.
- Urban Amenities: While Mishawaka has local shopping, parks, and cultural sites, residents travel to South Bend or farther for larger malls, fine dining, and entertainment options.
- Public Transit Limitations: Mishawaka’s Transport system serves main corridors like downtown, University Park Mall, and the Transfer Center. However, for errands and commuting outside these routes require a car.
Pro Tip If you’re looking for a solid Midwestern market, Bloomington is a strong option. From Near West Side to Bryan Park, you’ll find a range of affordable houses in Bloomington with strong rental demand.
Plainfield (safety score of 70) and Elwood (safety score of 71) are the cheapest and safest cities in Indiana. They offer low crime rates, family-friendly neighborhoods, and a lively, welcoming lifestyle.
Top 3 Cheapest Cities to Live in Indiana for Young Adults
When looking for the least expensive city to live in Indiana, you need to look more than affordability. Steady jobs, livable environment, and reachable educational or employment locations are also important. Several Indiana cities deliver on all three, combining lower housing costs with diverse employment bases and room for growth.
| Rank | City | Why It’s Great for Young Adults |
|---|---|---|
| 1. | Elkhart | Elkhart has a robust job market. RV manufacturing and its related industries provide a good start for young professionals. The city has cheap rent. Furthermore, it is close to South Bend for nightlife and entertainment. |
| 2. | Evansville | Evansville combines a relatively low “living wage” threshold with solid pay. Housing, food, and transportation expenses are lower than the state average as well. Homes for sale in Evansville are readily available for responsible young professionals looking to start their future. |
| 3. | Terre Haute | Terre Haute is home to Indiana State University (ISU), making the city a vibrant place filled with young energy. There are budget-friendly rentals and cheap homes for sale in Terre Haute for young adults looking to study and grow their career in the city. |
Top 3 Inexpensive Places to Live in Indiana for Families
Indiana attracts families with its low cost of living, affordable housing, and reasonable taxes. These three cities offer low expenses and quality schools.
| Rank | City | Why It’s Great for Families |
|---|---|---|
| 1. | Fort Wayne | Fort Wayne has attractions for family outings, including the Children’s Zoo, Franke Park, and YMCA centers. The city also has a YMCA community center. Buyers can explore homes for sale in Fort Wayne, if they want 15% cheaper housing prices compared to the state average. |
| 2. | Connersville | Connersville offers outdoor family recreation at Roberts Park, the John Conner Nature Preserve, and riverfront areas. Key employment comes from manufacturing and retail. Affordable homes for sale in Connersville make it possible to live on a shoestring budget. |
| 3. | Marion | Families enjoy Matter Park’s trails, playgrounds, and Splash House water park. Schools like Riverview Elementary serve local students. The Grant County Family YMCA offers after-school care. Youth sports programs include basketball and volleyball. Affordable homes make Marion attractive to working families. |
3 Best Affordable Places to Live in Indiana for Retirees
Indiana is a retiree’s haven. In these cities, you can find affordable homes, accessible healthcare, and safe communities. There are also plenty of outdoor activities like biking, fishing, and birdwatching to enjoy a comfortable, active lifestyle.
| Rank | City | Why It’s Great for Retirees |
|---|---|---|
| 1. | Wabash | Retirees enjoy the Honeywell Center for concerts and cultural events. Parkview Wabash Hospital offers senior care and rehabilitation services. Affordable homes for sale in Wabash make it easy to enjoy a low-cost, comfortable retirement. |
| 2. | Jasper | Jasper celebrates its German heritage with the annual Strassenfest. You can visit Memorial Hospital for quality healthcare and riverfronts of lakes like Jasper River riverfront for walking and biking. Cheap homes for sale in Jasper allow seniors to enjoy small-town charm and outdoor recreation. |
| 3. | Logansport | Logansport features the River Bluff Trail along the Wabash River for walking and cycling. Logansport Memorial Hospital provides reliable healthcare close to home. Retirees can enjoy scenic trails, and local cultural attractions such as the Cass County Historical Society Museum and community events. |
3 Hidden Costs to Consider in Indiana
Even in the cheapest Indiana cities, home prices are only part of the cost. With the state experiencing increased tornadoes and flooding, insurance and tax considerations are important when choosing the most affordable area to live in Indiana.
- Severe Weather Insurance: Indiana sees tornadoes and flooding, which can raise insurance costs. Standard homeowners policies now average $1,600–$2,400 per year, though rates vary by location.
- Flood Insurance: Standard coverage does not include flood damage. FEMA or private policies typically cost around $900–$1,000 annually, depending on proximity to rivers or flood-prone areas.
- Property Taxes: Indiana property taxes are around 0.77%, which can shot up with local taxes depending on the location.
Quick Tip Indiana’s Homestead Deduction allows up to $48,000 off the assessed value of your primary residence, which can help reduce costs. However, it does not apply to second homes or investment properties.
Savings Breakdown: Cheapest Cities in Indiana to Live In
Housing costs vary dramatically across Indiana. Richmond residents save $226 monthly compared to Lafayette and $671 compared to Bloomington. The following table breaks down these savings by median home price, monthly mortgage, property tax, insurance, and total monthly costs.
| City | Median Home Price | Avg. Monthly Mortgage | Insurance/taxes | Estimated Monthly Cost for a Single Person | Monthly Savings vs. Bloomington |
|---|---|---|---|---|---|
| Richmond | $118,500 | $985 | $778 | $1,763 | $671 |
| Lafayette | $217,500 | $1,153 | $836 | $1,989 | $445 |
| Bloomington | $325,000 | $1,538 | $896 | $2,434 | – |
Affordable Living Beyond Indiana
Not sure if the cheapest places in Indiana to live will fit your budget? Here are a few surrounding states that offer affordable housing, a strong job market, and ease of doing business, just like Indiana.
Affordable Housing
Louisiana offers flat 3.0% on taxable income with average property tax of about 0.55-0.6%. Here are the top 3 cheapest places to live in Louisiana:
- Monroe: Homes around $150,000, rent under $950, and a strong community near University of Louisiana at Monroe.
- Lafayette: Homes around $245,000, rent from $1,450, with career opportunities in oil/gas sector plus cultural diversity in neighborhoods.
- Shreveport: Homes around $160,000, rent from $1,000, offering riverfront charm and economic growth near casinos.
Strong Job Market
Iowa offers a stable job and here are top three cheapest places to live in Iowa to explore those opportunities:
- Davenport: Homes is around $199,750 and rent is $996. The job market thrives on manufacturing at John Deere, food processing, and logistics along the Mississippi River.
- Cedar Rapids: Homes around $192,000, rent from $1,053. The economy is driven by food processing at Quaker Oats. There are jobs in aerospace, and healthcare as well.
- Waterloo: Homes around $162,500, rent from $795. It offers jobs in manufacturing and healthcare.
Ease of Doing Business
South Dakota offers a highly business-friendly environment with low taxes and simple startup costs. These are the three cheapest cities to live in South Dakota:
- Sioux Falls: Homes around $312,000, rent near $1,144. The city’s growing economy in healthcare, finance, and logistics simplifies launching small businesses with fast permits and incentives
- Rapid City: Homes around $342,500, rent near $1,305. Tourism, manufacturing, and service jobs align with minimal red tape, easing entrepreneur setups near Mount Rushmore.
- Aberdeen: Homes around $257,500, rent near $1,074. Steady sectors like education, healthcare, and agriculture enable cost-effective startups through local grants and streamlined zoning.
Where Is the Cheapest Place to Live in Indiana?
Richmond, Marion, and Logansport are the most affordable cities to live in Indiana. These areas offer more than low prices; they also provide steady job markets, plenty of recreation, and a cost of living below the national average.
Moving to Indiana also comes with tax advantages, with property taxes averaging around 0.77%. Whether you’re relocating or buying your first home, you can browse listings, compare prices, and make offers online.
