The 10 Most Affordable Places to Live in Indiana

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By Michael Yessis Updated June 13, 2024
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Edited by Ashley Simon

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The 46901 zip code in Kokomo tops our ranking of the most affordable places to live in Indiana.

We looked at 209 zip codes in the state, evaluating home values, rental costs, energy rates, property taxes, and five other affordability indicators. We used the data we gathered to calculate our proprietary Affordability Score for each zip code.  

Top 10 most affordable places to live in Indiana

RankCity Affordability Score Median home valueRental costs
1Kokomo 🥇100$140,764$851
2Terre Haute🥈97.7$95,593$800
3Evansville 🥉96.1$173,088$842
4Richmond95.5$140,865$948
5Peru94.4$129,118$1,444
6Marion94.0$94,512$1,444
7Muncie92.9$86,094$845
8Anderson92.1$199,025$1,103
9Wabash91.9$163,042$1,444
10Fort Wayne91.4$159,015$907
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1. Kokomo

Here's why the 46901 zip code in Kokomo is Indiana's most affordable place to live.

🔎 Key data about Kokomo

Data pointValueRank (out of 209 markets)Difference from median or average
Affordability Score 100 No. 1N/A
Median home value $140,764[1]No. 21 -$109,631.70
Home affordability ratio 2.4No. 9-1.2
Home value five-year change 48.1%[2]No. 61-4.0%
Home value one-year forecast -0.6%[3]No. 74-0.1%
Rental costs $851[4]No. 7-$592
Rent affordability ratio 1.43%No. 7-0.6%
Median household income $59,629[5]No. 130-$10,795
Property taxes $783[6]No. 17-$828
Energy costs $0.15 kWh[7]No. 51$0.00
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Kokomo's 46901 zip code is the cheapest place to live in Indiana, leading the 209 markets we evaluated. 

The median home value is $140,764, making it the 21st-cheapest housing market in the state. Forecasts project a -0.6% change in home values in the next year. Rent in the zip code averages $851 per month, which is the 7th cheapest amount in Indiana.

The median property tax for homeowners in Kokomo is $783 per household, the No. 17 ranked market in Indiana. 

Residents pay $0.15 per kWh of electricity, which ranks No. 51 among Indiana markets.

2. Terre Haute

The 47804 zip code is the 2nd-cheapest place to live in Indiana.

🔎 Key data about Terre Haute

Data pointValueRank (out of 209 markets)Difference from median or average
Affordability Score 97.7No. 2N/A
Median home value $95,593[8]No. 8-$154,802.55
Home affordability ratio 2.4No. 10-1.1
Home value five-year change 40.2%[9]No. 10-11.9%
Home value one-year forecast -1.2%[10]No. 37-0.7%
Rental costs $800[11]No. 3-$644
Rent affordability ratio 2.04%No. 580.0%
Median household income $39,129[12]No. 202-$31,295
Property taxes $760[13]No. 15-$851
Energy costs $0.15 kWh[14]No. 51$0.00
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Terre Haute's 47804 zip code has a median home value of $95,593, which is the 37th-cheapest housing market in Indiana. You can rent for an average of $800 per month. That's the 3rd-cheapest price in the state.

The average household income in the zip code is $39,129, which ranks 202nd-highest in the state. 

Homeowners in Terre Haute pay a median property tax of $760 per year, making it the 15th-most affordable market in Indiana.

Terre Haute ranks No. 51 among Indiana energy markets. You'll pay $0.15 per kWh of electricity.

3. Evansville

The 3rd-cheapest place to live in Indiana is Evansville's 47711 zip code.

🔎 Key data about Evansville

Data pointValueRank (out of 209 markets)Difference from median or average
Affordability Score 96.1No. 3N/A
Median home value $173,088[15]No. 49-$77,308.15
Home affordability ratio 2.8No. 27-0.8
Home value five-year change 46.7%[16]No. 49-5.4%
Home value one-year forecast -0.8%[17]No. 57-0.3%
Rental costs $842[18]No. 5-$601
Rent affordability ratio 1.35%No. 4-0.7%
Median household income $62,359[19]No. 120-$8,065
Property taxes $1,239[20]No. 85-$372
Energy costs $0.17 kWh[21]No. 199$0.02
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The No. 49 cheapest housing in Indiana is Evansville's 47711 zip code, with a median home value of $173,088. Rents in the market average $842 per month, making it the 5th-most affordable rental market in the state.

The median property tax for households in Evansville is $1,239, which makes it the 85th-cheapest place in Indiana. Evansville ranks No. 199 among Indiana markets by energy costs. Residents pay $0.17 per kWh of electricity.

4. Richmond

The 47374 zip code in Richmond comes in at No. 4 on our list of the cheapest places to live in Indiana.

🔎 Key data about Richmond

Data pointValueRank (out of 209 markets)Difference from median or average
Affordability Score 95.5No. 4N/A
Median home value $140,865[22]No. 22-$109,530.35
Home affordability ratio 2.8No. 26-0.8
Home value five-year change 48.7%[23]No. 67-3.4%
Home value one-year forecast -0.9%[24]No. 53-0.4%
Rental costs $948[25]No. 17-$495
Rent affordability ratio 1.86%No. 37-0.2%
Median household income $50,880[26]No. 177-$19,544
Property taxes $956[27]No. 40-$655
Energy costs $0.15 kWh[28]No. 51$0.00
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The No. 22 cheapest housing market in Indiana is Richmond's 47374 zip code, where the median home value is $140,865. Renters here pay an average of $948 per month. 

When it comes to energy costs, Richmond ranks 51st among Indiana markets. Residents pay $0.15 per kWh of electricity.

The median property tax for households in the zip code is $956, which makes it the 40th-cheapest market in Indiana.

5. Peru

The 46970 zip code in Peru ranks No. 5 among Indiana's most affordable places to live.

🔎 Key data about Peru

Data pointValueRank (out of 209 markets)Difference from median or average
Affordability Score 94.4No. 5N/A
Median home value $129,118[29]No. 15-$121,278.17
Home affordability ratio 2.3No. 8-1.2
Home value five-year change 47.3%[30]No. 54-4.7%
Home value one-year forecast -1.7%[31]No. 33-1.2%
Rental costs $1,444[32]No. 62$0
Rent affordability ratio 2.05%No. 600.0%
Median household income $55,291[33]No. 156-$15,133
Property taxes $602[34]No. 6-$1,009
Energy costs $0.15 kWh[35]No. 51$0.00
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Peru's 46970 zip code has a median home value of $129,118, the 15th-cheapest market in the state. Forecasts project a -1.7% change in home values in the next year. 

The median property tax per household in Peru is $602. It's the 6th-cheapest market by tax rate in Indiana.

6. Marion

The No. 6 most affordable place to live in Indiana is the 46953 zip code.

🔎 Key data about Marion

Data pointValueRank (out of 209 markets)Difference from median or average
Affordability Score 94.0No. 6N/A
Median home value $94,512[36]No. 5-$155,883.72
Home affordability ratio 2.1No. 3-1.5
Home value five-year change 41.4%[37]No. 13-10.7%
Home value one-year forecast -0.9%[38]No. 53-0.4%
Rental costs $1,444[39]No. 62$0
Rent affordability ratio 2.05%No. 600.0%
Median household income $45,701[40]No. 187-$24,723
Property taxes $585[41]No. 4-$1,026
Energy costs $0.15 kWh[42]No. 114$0.00
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The back half of our top 10 kicks off with Marion's 46953 zip code, which has the 5th-cheapest home values in Indiana. The median home value is $94,512. Rents average $1,444 per month, making it the 62nd-most affordable rental market in the state.

Residents pay $0.15 per kWh of electricity. It's the 114th-cheapest energy market.

7. Muncie

Muncie's 47302 zip code is the 7th-cheapest place to live in Indiana.

🔎 Key data about Muncie

Data pointValueRank (out of 209 markets)Difference from median or average
Affordability Score 92.9No. 7N/A
Median home value $86,094[43]No. 4-$164,301.40
Home affordability ratio 1.9No. 1-1.6
Home value five-year change 82.3%[44]No. 19930.2%
Home value one-year forecast 0.6%[45]No. 1911.1%
Rental costs $845[46]No. 6-$599
Rent affordability ratio 1.90%No. 40-0.1%
Median household income $44,362[47]No. 192-$26,062
Property taxes $640[48]No. 7-$971
Energy costs $0.16 kWh[49]No. 118$0.01
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You'll find the 4th-cheapest home values in Indiana in Muncie's 47302 zip code. The median value: $86,094. Renters in Muncie pay an average of $845 per month.

Homeowners in Muncie pay a median property tax of $640 per year, which is Indiana's 7th-most affordable market.

The average household income is $44,362, which ranks 192nd-highest in the state.

8. Anderson

The 8th-cheapest place to live in Indiana is Anderson's 46011 zip code.

🔎 Key data about Anderson

Data pointValueRank (out of 209 markets)Difference from median or average
Affordability Score 92.1No. 8N/A
Median home value $199,025[50]No. 72-$51,370.54
Home affordability ratio 2.7No. 22-0.8
Home value five-year change 67.0%[51]No. 17714.9%
Home value one-year forecast 0.0%[52]No. 1140.5%
Rental costs $1,103[53]No. 33-$340
Rent affordability ratio 1.50%No. 12-0.5%
Median household income $73,554[54]No. 69$3,130
Property taxes $1,232[55]No. 83-$379
Energy costs $0.15 kWh[56]No. 114$0.00
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The 72nd-cheapest housing market in Indiana is Anderson's 46011 zip code, with a median home value of $199,025. Renters pay an average of $1,103 per month, the No. 33 rental market in the state.

The median property tax for households in Anderson is $1,232, which makes it the 83rd-cheapest place in Indiana. The average household income of $73,554 ranks 69th.

9. Wabash

Wabash's 46992 zip code sneaks into the top ten of Indiana's most affordable places to live.

🔎 Key data about Wabash

Data pointValueRank (out of 209 markets)Difference from median or average
Affordability Score 91.9No. 9N/A
Median home value $163,042[57]No. 37-$87,353.61
Home affordability ratio 2.5No. 11-1.1
Home value five-year change 50.2%[58]No. 82-1.9%
Home value one-year forecast -1.1%[59]No. 39-0.6%
Rental costs $1,444[60]No. 62$0
Rent affordability ratio 2.05%No. 600.0%
Median household income $65,734[61]No. 101-$4,690
Property taxes $747[62]No. 14-$864
Energy costs $0.15 kWh[63]No. 51$0.00
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The 37th-cheapest housing market in Indiana is Wabash's 46992 zip code, where the median home value is $163,042. Renters pay an average of $1,444 per month. It's the state's 62nd-cheapest rental market.

The median property tax for households within the zip code is $747, which makes it the 14th-cheapest property tax rate in Indiana. 

10. Fort Wayne

The final spot on our list of the most affordable places to live in Indiana goes to the 46807 zip code in Fort Wayne.

🔎 Key data about Fort Wayne

Data pointValueRank (out of 209 markets)Difference from median or average
Affordability Score 91.4No. 10N/A
Median home value $159,015[64]No. 34-$91,380.46
Home affordability ratio 2.8No. 25-0.8
Home value five-year change 78.2%[65]No. 19826.1%
Home value one-year forecast 0.7%[66]No. 2011.2%
Rental costs $907[67]No. 12-$537
Rent affordability ratio 1.57%No. 15-0.5%
Median household income $57,625[68]No. 146-$12,799
Property taxes $981[69]No. 47-$630
Energy costs $0.16 kWh[70]No. 118$0.01
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The 34th-most affordable market in Indiana is Fort Wayne's 46807 zip code. The median home value is $159,015. Rent in the market costs $907 per month on average, making it the 12th-most affordable rental market in Indiana.

The median property tax for households in Fort Wayne is $981, which is the 47th-cheapest property tax rate in the state.

Fort Wayne ranks No. 118 among Indiana markets by energy costs, with households paying $0.16 per kWh of electricity.

How we ranked the most affordable places in Indiana

We evaluated 209 zip codes in Indiana with a population over 10,000 on nine metrics. We then assigned each market an Affordability Score based on its weighted and combined rankings. 

✍️ 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.

Methodology: What is an Affordability Score?

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 23.8% 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 23.8% 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 4.8% 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 4.8% 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 11.9% 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 4.8% 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 11.9% 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 7.1% 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 7.1% to energy costs.  

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Authors & Editorial History

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