The 47111 zip code in Charlestown tops our ranking of the most affordable places to live in Indiana.
Whether you're searching for affordable cities and towns to buy a home or the places with the lowest cost of living to rent, consider the following zip codes.
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Top 10 most affordable places to live in Indiana
| Rank | City | Affordability Score | Median home value | Rental costs |
|---|---|---|---|---|
| 1 | Charlestown 🥇 | 100.0 | $302,896 | $1,362 |
| 2 | Evansville 🥈 | 98.9 | $184,969 | $883 |
| 3 | Princeton 🥉 | 97.3 | $185,969 | $875 |
| 4 | Elwood | 97.2 | $149,152 | $1,408 |
| 5 | Kokomo | 96.4 | $160,705 | $961 |
| 6 | Georgetown | 96.4 | $329,724 | $1,408 |
| 7 | Anderson | 96.1 | $209,942 | $1,210 |
| 8 | New Castle | 96.1 | $165,965 | $878 |
| 9 | Portland | 95.2 | $163,879 | $1,408 |
| 10 | Indianapolis | 95.0 | $185,395 | $1,071 |
What these affordable cities and towns have in common
The 10 zip codes we ranked share a common trait: a low cost of living relative to the Indiana median.
Median home values, rental costs, and property taxes generally sit below the state averages, while household incomes remain strong enough to keep home affordability ratios manageable. Below, we look at each market in detail.
1. Charlestown
Here's why the 47111 zip code in Charlestown is Indiana's most affordable place to live.
🔎 Key data about Charlestown
| Data point | Value | Rank (out of 205 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 100.0 | No. 1 | N/A |
| Median home value | $302,896[1] | No. 147 | $36,575 |
| Home affordability ratio | 3.2 | No. 70 | -0.3 |
| Home value five-year change | 29.5%[2] | No. 33 | -5.5% |
| Home value one-year forecast | 0.0%[3] | No. 1 | -1.1% |
| Rental costs | $1,362[4] | No. 73 | -$46 |
| Rent affordability ratio | 1.43% | No. 19 | -0.4% |
| Median household income | $95,376[5] | No. 31 | $19,294 |
| Property taxes | $1,766[6] | No. 129 | -$101 |
| Energy costs | $0.14 kWh[7] | No. 30 | -$0.02 |
Charlestown's 47111 zip code is the cheapest place to live in Indiana, leading the 205 markets we evaluated.
The median home value is $302,896, making it the 147th-cheapest housing market in the state. Forecasts project a 0.0% change in home values in the next year. Rent in the zip code averages $1,362 per month, which is the 19th cheapest amount in Indiana.
The median property tax for homeowners in Charlestown is $1,766 per household, the No. 129 ranked market in Indiana.
Residents pay $0.14 per kWh of electricity, which ranks No. 30 among Indiana markets.
📈 Thinking about buying in Indiana? See our complete housing market outlook for the data, trends, and timing insights Indiana buyers need to know.
2. Evansville
The 47711 zip code is the 2nd-cheapest place to live in Indiana.
🔎 Key data about Evansville
| Data point | Value | Rank (out of 205 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 98.9 | No. 2 | N/A |
| Median home value | $184,969[1] | No. 50 | -$81,351 |
| Home affordability ratio | 2.8 | No. 24 | -0.7 |
| Home value five-year change | 35.9%[2] | No. 95 | 1.0% |
| Home value one-year forecast | 1.0%[3] | No. 115 | -0.1% |
| Rental costs | $883[4] | No. 8 | -$524 |
| Rent affordability ratio | 1.33% | No. 7 | -0.5% |
| Median household income | $66,320[5] | No. 117 | -$9,762 |
| Property taxes | $1,251[6] | No. 58 | -$616 |
| Energy costs | $0.18 kWh[7] | No. 166 | $0.02 |
Evansville's 47711 zip code has a median home value of $184,969, which is the 50th-cheapest housing market in Indiana. You can rent for an average of $883 per month. That's the 8th-cheapest price in the state.
The average household income in the zip code is $66,320, which ranks 117th-highest in the state.
Homeowners in Evansville pay a median property tax of $1,251 per year, making it the 58th-most affordable market in Indiana.
Evansville ranks No. 166 among Indiana energy markets. You'll pay $0.18 per kWh of electricity.
3. Princeton
The 3rd-least-expensive place to live in Indiana is Princeton's 47670 zip code.
🔎 Key data about Princeton
| Data point | Value | Rank (out of 205 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 97.3 | No. 3 | N/A |
| Median home value | $185,969[1] | No. 52 | -$80,351 |
| Home affordability ratio | 2.9 | No. 33 | -0.6 |
| Home value five-year change | 39.4%[2] | No. 131 | 4.4% |
| Home value one-year forecast | 1.1%[3] | No. 123 | 0.0% |
| Rental costs | $875[4] | No. 6 | -$533 |
| Rent affordability ratio | 1.35% | No. 10 | -0.5% |
| Median household income | $64,907[5] | No. 125 | -$11,175 |
| Property taxes | $1,206[6] | No. 53 | -$661 |
| Energy costs | $0.15 kWh[7] | No. 111 | $0.00 |
The No. 52 cheapest housing market in Indiana is Princeton's 47670 zip code, with a median home value of $185,969. Rents in the market average $875 per month, making it the 6th-most affordable rental market in the state.
The median property tax for households in Princeton is $1,206, which makes it the 53rd-cheapest place in Indiana. Princeton ranks No. 111 among Indiana markets by energy costs. Residents pay $0.15 per kWh of electricity.
4. Elwood
The 46036 zip code in Elwood comes in at No. 4 on our list of the cheapest places to live in Indiana.
🔎 Key data about Elwood
| Data point | Value | Rank (out of 205 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 97.2 | No. 4 | N/A |
| Median home value | $149,152[1] | No. 19 | -$117,169 |
| Home affordability ratio | 2.4 | No. 7 | -1.1 |
| Home value five-year change | 36.0%[2] | No. 97 | 1.0% |
| Home value one-year forecast | 0.7%[3] | No. 63 | -0.4% |
| Rental costs | $1,408[4] | No. 81 | $0 |
| Rent affordability ratio | 1.85% | No. 58 | 0.0% |
| Median household income | $62,074[5] | No. 139 | -$14,008 |
| Property taxes | $885[6] | No. 15 | -$982 |
| Energy costs | $0.15 kWh[7] | No. 91 | -$0.01 |
The No. 19 cheapest housing market in Indiana is Elwood's 46036 zip code, where the median home value is $149,152. Renters here pay an average of $1,408 per month.
When it comes to energy costs, Elwood ranks 91st among Indiana markets. Residents pay $0.15 per kWh of electricity.
The median property tax for households in the zip code is $885, which makes it the 15th-cheapest market in Indiana.
5. Kokomo
The 46901 zip code in Kokomo ranks No. 5 among Indiana's most affordable places to live.
🔎 Key data about Kokomo
| Data point | Value | Rank (out of 205 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 96.4 | No. 5 | N/A |
| Median home value | $160,705[1] | No. 27 | -$105,615 |
| Home affordability ratio | 2.7 | No. 15 | -0.8 |
| Home value five-year change | 45.3%[2] | No. 175 | 10.3% |
| Home value one-year forecast | 2.3%[3] | No. 192 | 1.2% |
| Rental costs | $961[4] | No. 14 | -$446 |
| Rent affordability ratio | 1.59% | No. 31 | -0.3% |
| Median household income | $60,495[5] | No. 152 | -$15,587 |
| Property taxes | $951[6] | No. 24 | -$916 |
| Energy costs | $0.13 kWh[7] | No. 2 | -$0.02 |
Kokomo's 46901 zip code has a median home value of $160,705, the 27th-cheapest housing market in the state. Forecasts project a 2.3% change in home values in the next year.
The median property tax per household in Kokomo is $951. It's the 24th-cheapest market by tax rate in Indiana.
6. Georgetown
The No. 6 most affordable city in Indiana is the 47122 zip code.
🔎 Key data about Georgetown
| Data point | Value | Rank (out of 205 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 96.4 | No. 6 | N/A |
| Median home value | $329,724[1] | No. 166 | $63,404 |
| Home affordability ratio | 3.1 | No. 58 | -0.4 |
| Home value five-year change | 28.0%[2] | No. 21 | -7.0% |
| Home value one-year forecast | 0.0%[3] | No. 1 | -1.1% |
| Rental costs | $1,408[4] | No. 81 | $0 |
| Rent affordability ratio | 1.85% | No. 58 | 0.0% |
| Median household income | $107,500[5] | No. 22 | $31,418 |
| Property taxes | $1,796[6] | No. 132 | -$71 |
| Energy costs | $0.13 kWh[7] | No. 24 | -$0.02 |
The back half of our top 10 kicks off with Georgetown's 47122 zip code, which has the 166th-cheapest home values in Indiana. The median home value is $329,724. Rents average $1,408 per month, making it the 81st-most affordable rental market in the state.
Residents pay $0.13 per kWh of electricity. It's the 24th-cheapest energy market.
7. Anderson
Anderson's 46011 zip code is the 7th-cheapest place to live in Indiana.
🔎 Key data about Anderson
| Data point | Value | Rank (out of 205 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 96.1 | No. 7 | N/A |
| Median home value | $209,942[1] | No. 70 | -$56,379 |
| Home affordability ratio | 2.7 | No. 22 | -0.8 |
| Home value five-year change | 46.2%[2] | No. 183 | 11.3% |
| Home value one-year forecast | 0.7%[3] | No. 63 | -0.4% |
| Rental costs | $1,210[4] | No. 46 | -$198 |
| Rent affordability ratio | 1.58% | No. 30 | -0.3% |
| Median household income | $76,391[5] | No. 66 | $309 |
| Property taxes | $1,373[6] | No. 78 | -$494 |
| Energy costs | $0.14 kWh[7] | No. 62 | -$0.01 |
You'll find the 70th-cheapest home values in Indiana in Anderson's 46011 zip code. The median value: $209,942. Renters in Anderson pay an average of $1,210 per month.
Homeowners in Anderson pay a median property tax of $1,373 per year, which is Indiana's 78th-most affordable market.
The average household income is $76,391, which ranks 66th-highest in the state.
8. New Castle
The 8th-least-expensive place to live in Indiana is New Castle's 47362 zip code.
🔎 Key data about New Castle
| Data point | Value | Rank (out of 205 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 96.1 | No. 8 | N/A |
| Median home value | $165,965[1] | No. 32 | -$100,356 |
| Home affordability ratio | 2.8 | No. 23 | -0.7 |
| Home value five-year change | 41.9%[2] | No. 158 | 6.9% |
| Home value one-year forecast | 1.8%[3] | No. 163 | 0.7% |
| Rental costs | $878[4] | No. 7 | -$529 |
| Rent affordability ratio | 1.46% | No. 22 | -0.4% |
| Median household income | $60,258[5] | No. 154 | -$15,824 |
| Property taxes | $1,099[6] | No. 41 | -$768 |
| Energy costs | $0.14 kWh[7] | No. 73 | -$0.01 |
The 32nd-cheapest housing market in Indiana is New Castle's 47362 zip code, with a median home value of $165,965. Renters pay an average of $878 per month, the No. 7 rental market in the state.
The median property tax for households in New Castle is $1,099, which makes it the 41st-cheapest place in Indiana. The average household income of $60,258 ranks 154th.
9. Portland
Portland's 47371 zip code is one of Indiana's most affordable towns, sneaking into the top ten of our rankings.
🔎 Key data about Portland
| Data point | Value | Rank (out of 205 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 95.2 | No. 9 | N/A |
| Median home value | $163,879[1] | No. 30 | -$102,442 |
| Home affordability ratio | 2.6 | No. 12 | -0.9 |
| Home value five-year change | 35.0%[2] | No. 81 | 0.0% |
| Home value one-year forecast | 1.1%[3] | No. 123 | 0.0% |
| Rental costs | $1,408[4] | No. 81 | $0 |
| Rent affordability ratio | 1.85% | No. 58 | 0.0% |
| Median household income | $64,000[5] | No. 128 | -$12,082 |
| Property taxes | $737[6] | No. 9 | -$1,130 |
| Energy costs | $0.15 kWh[7] | No. 118 | $0.00 |
The 30th-cheapest housing market in Indiana is Portland's 47371 zip code, where the median home value is $163,879. Renters pay an average of $1,408 per month. It's the state's 81st-cheapest rental market.
The median property tax for households within the zip code is $737, which makes it the 9th-cheapest property tax rate in Indiana.
10. Indianapolis
The final spot on our list of the most affordable places to live in Indiana goes to the 46219 zip code in Indianapolis.
🔎 Key data about Indianapolis
| Data point | Value | Rank (out of 205 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 95.0 | No. 10 | N/A |
| Median home value | $185,395[1] | No. 51 | -$80,925 |
| Home affordability ratio | 3.0 | No. 54 | -0.5 |
| Home value five-year change | 33.5%[2] | No. 63 | -1.5% |
| Home value one-year forecast | 0.7%[3] | No. 63 | -0.4% |
| Rental costs | $1,071[4] | No. 28 | -$336 |
| Rent affordability ratio | 1.76% | No. 49 | -0.1% |
| Median household income | $60,803[5] | No. 148 | -$15,279 |
| Property taxes | $1,726[6] | No. 120 | -$141 |
| Energy costs | $0.14 kWh[7] | No. 34 | -$0.01 |
Rounding out our top 10 is Indianapolis's 46219 zip code, with the 51st-cheapest home values in Indiana.
The median home value is $185,395. Rent in the market costs $1,071 per month on average.
The median property tax for households in Indianapolis is $1,726, which is the 120th-cheapest property tax rate in the state.
Indianapolis ranks No. 34 among Indiana markets by energy costs, with households paying $0.14 per kWh of electricity.
What questions about these cities should I ask local agents?
Once you've found a town you're interested in, you'll want to ask a local agent for details our rankings can't capture. Start with these four questions:
- What neighborhoods inside this zip code have the best resale value?
- What's the rental market like right now?
- Are there local property tax exemptions or homestead programs you'd qualify for?
- What are the most common surprises buyers run into here?
🏡 Need a local agent? We can connect you with an expert who knows the market.
Frequently asked questions about the least expensive places to live in Indiana
Based on Clever's Affordability Score, the 47111 zip code in Charlestown is the cheapest place to live in Indiana.
The median home value is $302,896, and the median household income is $95,376, giving Charlestown a home affordability ratio of 3.2, meaning a typical home costs about that many times the median annual income.
See our Affordability Score methodology and the full ranking of the 10 cheapest places to live in Indiana.
The median home value in Indiana is $266,321.
See the rankings above for how individual cities compare to these state-wide figures.
Indiana is currently a mild seller's market, according to Clever's Market Heat Index.
The index reflects the balance between buyer demand and seller supply, which affects how much negotiating power buyers and sellers have in any given market.
Markets also vary by city, county, and neighborhood. It's always good to check with a local real estate agent to understand the dynamics of a given local market.
The median amount homeowners pay in property taxes in Indiana is $1,867 per year.
Property taxes are a key part of the overall cost of living, and they vary significantly by location. The per-city tax figures in the rankings above show how each of the 10 cheapest places stacks up against the Indiana median.
📍 The 10 cheapest places to live in your region
How we ranked the most affordable cities and towns in Indiana
We evaluated 205 zip codes in Indiana with a population over 10,000 on home values, rental costs, energy rates, property taxes, and five other affordability indicators. We then assigned each market an Affordability Score based on its weighted and combined rankings.
Our proprietary Affordability Score is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the affordability of a particular zip code. It takes into account these key data points for each zip code.
- Median home value: The median home value for each zip code comes from the Zillow Home Value Index. The lower the median home value relative to the median value in Indiana, the higher our score on this component. We assign a weight of 13.0% to median home value.
- Home affordability ratio. The home affordability ratio is the typical median home value divided by the median household income in the zip code, which reveals the number of years of household income needed to afford a home in that zip code. A lower ratio is better because it means more households can afford a home. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 28.0% to the home affordability ratio.
- Home value five-year change: The home value five-year change is the amount that the median home value in the zip code has risen or fallen during the last five years. Our data comes from the Zillow Home Value Index. We assign a weight of 10.0% to the home value five-year change.
- Home value one-year forecast: The home value one-year forecast comes from Zillow Forecast data. It projects how much home values in the zip code are forecasted to change in the next year. We assign a weight of 8.0% to the home value one-year forecast.
- Rental costs. The rental costs are the observed rents in the zip code, sourced from the Zillow Observed Rent Index. The index includes "listed rents that fall into the 40th to 60th percentile range for all homes and apartments in a given region." We assign a weight of 7.0% to rental costs.
- Median household income: The inflation-adjusted median household income figures for the zip code comes from the U.S. Census American Community Survey. We assign a weight of 5.0% to median household income.
- Rent affordability ratio. The rent affordability ratio is the ratio of rental costs divided by median household income, which provides the percentage of household income needed to pay a typical month’s rent in the zip code. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 17.0% to the rent affordability ratio.
- Property taxes: The property tax figures are the median real estate taxes paid in the zip code, sourced from the U.S. Census American Community Survey. The lower the property tax rate relative to the Indiana average, the higher our score on this component. We assign a weight of 8.0% to property taxes.
- Energy costs: The energy costs are the costs of a kilowatt hour (kWh) of residential electricity in the zip code, sourced from the U.S. Department of Energy. The lower the cost of electricity relative to the Indiana average, the higher our score on this component. We assign a weight of 4.0% to energy costs.
✍️ Editor’s note: Our Affordability Score identifies the most affordable places in a state by zip code. Often the zip code we identify will represent an entire city or portion of a city.
Occasionally the zip code we identify will encompass an area that includes one or more small towns. In these cases, the data we’ve gathered applies to the entire zip code, not just the single town we’re using to help identify the zip code's location.
If you’re looking to move to one of these affordable places, we recommend doing additional research to make sure the costs in the area — and the quality of life it offers — meet your specific needs.
Why you should trust us
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Our team is committed to making home purchasing more transparent by educating buyers and sellers through guides like this one. Our writers, editors, and industry-leading researchers strive to provide readers with the most up-to-date, accurate, and useful information.
Our research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more publications.
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