Cheapest Places to Live in Indiana

Indiana, with its mix of bustling cities and serene rural landscapes, offers a range of living experiences. Landmarks such as the Indianapolis Motor Speedway, Indiana Dunes National Park, and the Children's Museum of Indianapolis showcase the state's diverse attractions. The state's economy is diverse, driven by manufacturing, agriculture, and education sectors. Indiana's tax structure includes relatively low income and property taxes, contributing to its overall affordability. Despite recent inflation and rising food costs, Indiana remains one of the more affordable states in the Midwest, especially in its smaller towns and rural areas. The combination of a strong economy and manageable living costs makes Indiana an attractive place for those seeking affordability and quality of life.

Affordable living in Indiana can often be found in smaller towns and suburban areas where housing costs and everyday expenses are lower. These regions provide a more manageable cost of living, which is essential for maintaining financial stability. Affordability is a key factor in livability, as it allows residents to enjoy a comfortable standard of living without undue financial strain. Factors contributing to the cheapest places to live in Indiana include lower housing demand in less populated areas, supportive local economic policies, and efficient public services. Utilizing C2ER's cost of living data helps to identify these affordable regions, ensuring that potential residents can make informed decisions. In a state known for its friendly communities and economic opportunities, finding affordable living options enhances the overall living experience.

Logansport Population: 17,968 11% cheaper than Indiana average

Med. Home Value: $66,800 Med. Rent: $658 Med. Household Inc.: $38,053

With a cost of living index that is 11% cheaper than the state average, Logansport is the cheapest place to live in Indiana. This area offers residents a remarkable blend of relatively low housing costs, budget-friendly grocery prices, affordable utilities, and economical health care services, making it an attractive destination for those seeking to stretch their dollars further. Whether you're a young professional, a growing family, or someone looking to enjoy a more relaxed pace of life, Logansport provides an inviting and cost-effective environment to call home.

Connersville Population: 13,096 11% cheaper than Indiana average

Med. Home Value: $75,600 Med. Rent: $685 Med. Household Inc.: $38,980

The second most affordable city in Indiana is Connersville and stands out for its cost-effective lifestyle. With an overall cost of living that is 11% cheaper than the Indiana average, overall goods and services, housing, utilities, transportation and health care costs fall within a reasonable range. Median household income levels are steady and come in at , which helps to increase the purchasing power of the local residents.

Peru Population: 11,369 11% cheaper than Indiana average

Med. Home Value: $63,700 Med. Rent: $753 Med. Household Inc.: $40,065

Peru lands in the #3 spot for the cheapest cities to live in Indiana, with a cost of living that is 11% cheaper than the state average. With home prices averaging and rental rates coming in around , it helps that household income levels average about , which assists with paying the mortgage or your monthly rent. Its robust public school system and accessible health care further enhance its appeal, making it a great place to settle down. The strong community spirit and ample recreational opportunities add to its charm.

Marion Population: 27,730 11% cheaper than Indiana average

Med. Home Value: $69,800 Med. Rent: $685 Med. Household Inc.: $35,252

The cost of everyday grocery items, goods & services and of course housing, can have a significant impact on the overall cost of living in any area. Marion offers a picturesque and affordable living environment, with a cost of living that is 11% cheaper than the state average. Everyday items like ground beef , eggs , coffee and pizza are all fairly reasonable compared to most other cities, which helps reduce those grocery bills. Home prices are also fairly affordable (compared to the state average), coming in at around .

Elwood Population: 8,435 11% cheaper than Indiana average

Med. Home Value: $68,300 Med. Rent: $723 Med. Household Inc.: $44,752

For those wanting to live well on a budget, Elwood is ideal, with a cost of living that is 11% cheaper than the state average. Reasonable housing prices (compared to the Indiana average) of and rental prices of are paired with economical goods and services and a range of free or low-cost recreational activities. The city's proactive economic development initiatives also ensure a steady stream of job opportunities, making it a smart choice for those prioritizing financial ease.

Richmond Population: 35,467 10% cheaper than Indiana average

Med. Home Value: $86,300 Med. Rent: $704 Med. Household Inc.: $40,871

Richmond comes in at #6 on our list of the cheapest cities in Indiana and is a haven for those seeking affordability without sacrificing convenience. The city is known for its discount shopping centers and budget-friendly dining options and has a cost of living that is 10% cheaper than Indiana. The city's local markets provide fresh produce and other groceries at reduced prices, while parks and community centers offer free entertainment and leisure. This city is perfect for enjoying a high quality of life at a low cost.

Hartford City Population: 5,781 9% cheaper than Indiana average

Med. Home Value: $61,500 Med. Rent: $599 Med. Household Inc.: $34,748

With its cost-effective lifestyle, Hartford City is an attractive destination for those looking to live affordably. The city boasts suitable housing costs, affordable healthcare, and a variety of budget-friendly dining options. The community is welcoming and vibrant, providing residents with a rich social life at a fraction of the cost. Median income levels come in at , which provides financial stability, purchasing power and increases the quality of life in the city.

Rushville Population: 6,194 9% cheaper than Indiana average

Med. Home Value: $90,900 Med. Rent: $726 Med. Household Inc.: $53,789

A lower cost of living allows individuals to manage their expenses more effectively, reducing the risk of financial stress and debt. When essential costs such as housing, food, transportation, and healthcare are more affordable, people can achieve greater financial stability and resilience. Rushville fits that mold and has a cost of living that is 9% cheaper than Indiana.

Wabash Population: 10,017 9% cheaper than Indiana average

Med. Home Value: $85,600 Med. Rent: $677 Med. Household Inc.: $45,267

Lower living costs can lead to a higher quality of life by making it easier for people to afford comfortable housing, nutritious food, and access to healthcare. It can also provide opportunities for better education, recreational activities, and community engagement, contributing to overall well-being. Wabash is one of the most affordable cities in Indiana, and has a cost of living that is 9% cheaper than the state average.

South Bend Population: 102,686 9% cheaper than Indiana average

Med. Home Value: $88,600 Med. Rent: $814 Med. Household Inc.: $30,018

With a cost of living that is 9% cheaper than Indiana, South Bend comes in at #10 on our list of the cheapest places to live in Indiana. Financial stress is a significant factor affecting mental and physical health. By lowering the cost of living, individuals can experience reduced anxiety related to meeting monthly expenses, thereby improving overall health and well-being. The ability to afford basic necessities without constant worry contributes to a more balanced and fulfilling life.

Full list of the cheapest places in Indiana

Rank	Location	Population	COL Index	Med. Home Value	Med. Household Inc.
1	Logansport	17,968	79	$66,800	$38,053
2	Connersville	13,096	79	$75,600	$38,980
3	Peru	11,369	80	$63,700	$40,065
4	Marion	27,730	80	$69,800	$35,252
5	Elwood	8,435	80	$68,300	$44,752
6	Richmond	35,467	81	$86,300	$40,871
7	Hartford City	5,781	81	$61,500	$34,748
8	Rushville	6,194	82	$90,900	$53,789
9	Wabash	10,017	82	$85,600	$45,267
10	South Bend	102,686	82	$88,600	$30,018
11	South Bend	102,686	82	$88,600	$16,531
12	South Bend	102,686	82	$88,600	$32,824
13	South Bend	102,686	82	$88,600	$44,442
14	South Bend	102,686	82	$88,600	$78,131
15	South Bend	102,686	82	$88,600	$33,068
16	South Bend	102,686	82	$88,600	$48,546
17	South Bend	102,686	82	$88,600	$87,502
18	South Bend	102,686	82	$88,600	$42,657
19	South Bend	102,686	82	$88,600	$32,464
20	South Bend	102,686	82	$88,600	$31,403
21	South Bend	102,686	82	$88,600	$54,758
22	South Bend	102,686	82	$88,600	$38,188
23	South Bend	102,686	82	$88,600	$47,376
24	South Bend	102,686	82	$88,600	$15,512
25	South Bend	102,686	82	$88,600	$39,276
26	South Bend	102,686	82	$88,600	$40,920
27	South Bend	102,686	82	$88,600	$77,347
28	South Bend	102,686	82	$88,600	$57,610
29	South Bend	102,686	82	$88,600	$n/a
30	South Bend	102,686	82	$88,600	$38,751
31	South Bend	102,686	82	$88,600	$31,813
32	South Bend	102,686	82	$88,600	$66,090
33	South Bend	102,686	82	$88,600	$31,806
34	South Bend	102,686	82	$88,600	$54,290
35	South Bend	102,686	82	$88,600	$35,911
36	South Bend	102,686	82	$88,600	$42,975
37	South Bend	102,686	82	$88,600	$48,409
38	South Bend	102,686	82	$88,600	$42,178
39	South Bend	102,686	82	$88,600	$30,874
40	South Bend	102,686	82	$88,600	$71,244
41	Plymouth	10,029	82	$95,200	$40,444
42	Michigan City	31,191	82	$95,100	$44,930
43	Elkhart	52,657	82	$96,500	$40,101
44	La Porte	21,328	83	$108,600	$42,057
45	Kokomo	58,066	83	$93,300	$48,830
46	Rochester	6,026	83	$101,500	$47,479
47	New Castle	17,234	84	$75,300	$42,803
48	Portland	5,972	84	$76,100	$39,538
49	Mishawaka	49,675	84	$105,800	$44,792
50	Muncie	67,739	84	$76,500	$34,602

Methodology

To formulate the list of the cheapest places to live in Indiana, AreaVibes utilized comprehensive data from the Council for Community and Economic Research (C2ER) cost of living index. The report is released annually and offers a detailed comparison of living expenses across various urban areas. The data is meticulously gathered by over 300 independent researchers, ensuring a high level of accuracy and reliability. The C2ER index encompasses more than 60 goods and services, categorized into six essential areas that significantly impact the cost of living. These categories and their respective weightings in the index are as follows: goods and services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%), and utilities (10%).

Map of Cost of Living by State

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The map above is a great way to help you discover the most affordable states across the U.S. By highlighting states with the lowest cost of living, this map provides an in-depth look at where you can get the most value for your money. By visually representing this data, the map allows users to easily compare different regions and make informed decisions about potential relocations or investments. Additionally, it provides valuable insights into the economic conditions and lifestyle factors that influence these cost of living statistics. Whether you're planning a move, considering a new job, or simply curious about the economic landscape, this map is a useful resource for understanding and navigating the financial implications of living in different states.