Living in Indiana has many highlights from the arts and culinary scenes growing from picturesque countrysides showing the state’s Heartland heritage, to the bustling cities of Indianapolis. If you currently live in Indiana or are considering moving to Indiana, you may have a budget that you want to stay when renting or buying a home. As of July, the median home sales in Indiana was $265,300.
Even if that number is outside your budget, don’t worry, we have the option to help you find a home. Redfin has collected 14 of the most affordable locations in Indiana. And the best part is that they all have a median home selling price under the state average. So read to learn which cities made the top 14.
#1: Gary
Median home price: $79,000
Average selling price per square foot: $74
Average rent for a 1-bedroom apartment: $812
Median household income: $31,315
Nearest Major Metro: Chicago, Illinois (30 miles)
Gary, Home for Sale
Gary in apartment for rent
The median home sale price is $79,000, and Gary is the most affordable place to live in Indiana. The city is home to about 69,100 people, about 30 miles from Chicago, Illinois’ nearest major city. If you are considering moving to this area, spend a day at Lake Street Beach, along Lake Michigan’s coast, stop by the historic landmarks of the Michael Jackson Family home and explore IDNP Mirror Woods.
#2: Terre Haute
Median home price: $97,620
Average selling price per square foot: $49
Average rent for a 1-bedroom apartment: $887
Median household income: $37,299
Nearest Major Metro: Indianapolis (77 miles)
Tele Auto, Home for Sale
Terre Haute, apartment for rent
The second is Tele Auto, which currently houses around 58,400 residents. The median home sales price is $97,620, which is about $160,000 less than the median home sales in Indiana. If you’re moving here, check out Fairbanks Park along the Wabash River, visit local pubs and restaurants, and explore the downtown area.
#3: Muncy
Median home price: $97,620
Average selling price per square foot: $96
Average rent for a 1-bedroom apartment: $819
Median household income: $34,602
Nearest Major Metro: Indianapolis (62 miles)
Muncie, at home for sale
Rental in apartment in Muncy
Muncie is the third most affordable city living in Indiana. When you live in the city of 65,200, you can stroll along the trails near White River, check out the Minnetrista Museum, museums like the Gardens and the Boblos Experience, and explore the downtown Muncie area.
#4: South Bend
Median home price: $129,900
Average selling price per square foot: $126
Average rent for a 1-bedroom apartment: $861
Median household income: $34,602
Nearest Major Metro: Fort Wayne (90 miles)
South Bend, Home for Sale
South Bend apartment rental
A little more expensive than Muncie is South Bend, the next city on our list. With around 103,500 residents in South Bend, make sure to discover museums and historic sites such as the Studebaker National Museum, The History Museum and The Oliver Mansion. You can also check out the parks along the St. Joseph River, explore the Notre Dame campus, and watch soccer games in the fall.
#5: Evansville
Median home price: $160,000
Average selling price per square foot: $120
Average rent for a 1-bedroom apartment: $822
Median household income: $49,853
Evansville, Home for Sale
Apartment rental in Evansville
With around 115,300 residents, Evansville is the next city on our list. It’s just across from Kentucky, so there’s plenty to explore in both states. Evansville has many attractions, including the Evansville Museum, USS LST-325, Victory Theatre, and Mescar Park Zoo. You can also check out historic sites like the historic site in Angel Mound near the Ohio River.
#6: Elk Heart
Median home price: $161,000
Average selling price per square foot: $108
Average rent for a 1-bedroom apartment: $1,159
Median household income: $40,101
Nearest Major Metro: Fort Wayne (39 miles)
Elk Heart, Home for Sale
Elkhart, in a rental apartment
If you’ve lived in Indiana for a while, you probably know Elkhart. Around 53,900 residents call this affordable city a home. Once you’ve travelled to Elkhart, check out Wellfield’s Botanical Gardens, Studebaker Park and Island Park, and visit museums such as Ruthmere Campus and the Nutational New York Central Railroad Museum, and explore Elkhart’s riverfront and downtown area.
#7: Kokomo
Median home price: $161,450
Average selling price per square foot: $122
Average rent for a 1-bedroom apartment: $878
Median household income: $34,602
Nearest Major Metro: Indianapolis (62 miles)
Kokomo, a home for sale
Kokomo apartment rental
If you’re looking for an affordable place to move to Indiana, consider adding Kokomo to your list of cities and considering living there. With 59,600 residents, this affordable town is a great option to add to your list. At Kokomo, you can find a statue of Willy the Whale, explore downtown Kokomo, and visit Foster Park to watch races at Kokomo Speedway.
#8: Anderson
Median home price: $169,900
Average selling price per square foot: $95
Average rent for a 1-bedroom apartment: $857
Median household income: $37,110
Nearest Major Metro: Indianapolis (42 miles)
Anderson, at home for sale
Anderson, apartment for rental
The eighth on the list is another well-known city, Anderson. There, you can see that home prices are about $80,000 less than the state average. With around 54,800 people living in Anderson, this year it’s a great place to consider renting or buying a house. The city has many activities, including checking out outdoor spaces such as Killback Wetlands, Sheddyside Lake and Lingerine Nature Reserve. There are also plenty of local favourites, including exploring the charming downtown area, visiting museums and sites such as the Anderson Museum and the Indiana Sign.
#9: Mishawaka
Median home price: $171,750
Average selling price per square foot: $128
Average rent for a 1-bedroom apartment: $1,327
Median household income: $44,792
Nearest Major Metro: Fort Wayne (84 miles)
Mishawaka, at home for sale
Mishawaka in apartment for rental
With a population of around 51,100, Mishawaka is a great place to consider living in Indiana. Some of the fun activities to do in Mishawaka include exploring the Mishawaka River at Robert C. Bitter Riverfront Park, checking out local shops and restaurants, and visiting Batel Park.
#10: Hammond
Median home price: $185,000
Average selling price per square foot: $185
Average rent for a 1-bedroom apartment: $1,055
Median household income: $46,974
Nearest Major Metro: Chicago (29 miles)
Hammond at home for sale
Hammond apartment rental
Hammond is ranked 10th on the list of affordable places to live in Indiana. The population is nearly 77,900, and Hammond is not as big as Indiana’s major metropolitan cities. If you’re calling Hammond’s home, plan your time exploring Gibson Woods Nature Preserve, find birds, environmental centres and hiking trails, check out Wolf Lake and spend a beach day at Waihala Beach.
#11: Fort Wayne
Median home price: $215,000
Average selling price per square foot: $135
Average rent for a 1-bedroom apartment: $1,195
Median household income: $51,454
Nearest Major Metro: Indianapolis (125 miles)
Fort Wayne, Home for Sale
Fort Wayne apartment rental
To win the 11th spot on the list of affordable places to live in Indiana is Fort Wayne. The city has a population of 263,900, and you can explore the 110-acre Lindenwood Nature Preserve, tour museums like the Fort Wayne Museum of Art, and history centers, as well as check out the parks at Headwaters Park along the St. Mary’s River. There are plenty of activities to explore during your free time living in Fort Wayne.
#12: Lafayette
Median home price: $225,290
Average selling price per square foot: $149
Average rent for a 1-bedroom apartment: $997
Median household income: $46,925
Nearest Major Metro: Indianapolis (64 miles)
Lafayette, Home for Sale
Lafayette, apartment for rental
With the median home selling price in Lafayette at $215,000, it’s another great city to consider moving to this year. The city is home to about 70,800 people, giving Lafayette a city-like atmosphere without any fuss. If Lafayette is your city, take a stroll along Main Street, which is home to many local shops and restaurants, check out Armstrong Park, and walk along John T. Myers’ pedestrian bridge to West Lafayette.
#13: Indianapolis
Median home price: $235,000
Average selling price per square foot: $137
Average rent for a 1-bedroom apartment: $1,287
Median household income: $50,813
Indianapolis, Home for Sale
Rental apartments in Indianapolis
The city of Indianapolis has earned the 13th spot on our list. For those who want to buy a home, the median selling price is $235,000. Indianapolis has a lot to do, including discovering exhibits at museums such as the Children’s Museum in Indianapolis, the Indiana State Museum, and the Eiterjorg Museum. You can also watch the famous Indianapolis 500 at the Indianapolis Motor Speedway, explore White River State Park, or experience the Colts Game at Lucas Oil Stadium.
>>Read: Popular Indianapolis, Indiana, Neighborhoods in 2025
#14: Jeffersonville
Median home price: $251,500
Average selling price per square foot: $152
Average rent for a 1-bedroom apartment: $1,012
Median household income: $67,566
Nearest Major Metro: Lexington, Kentucky (3 miles)
Jeffersonville, Home for Sale
Apartment rental in Jeffersonville
Jeffersonville concludes our list of the most affordable places to live in Indiana. The median home selling price is $251,500, and with around 51,200 residents, this medium-sized city is a great option to consider buying a home. Check out the charming riverfront neighborhoods at local shops and restaurants, visit the Howard Steamboat Museum or stop by from the Falls of Ohio State Park.
Methodology: Every city must have more than 50,000 residents per US census and have a median home selling price under the average Indiana median home selling price. Median home sales prices and median sales prices per square foot from Redfin Data Center in April 2025. Average rental data from April 2025. Median household income data from the population and US Census Bureau.
