Most Affordable Cities in Indiana

Midwestern beauty has never looked as good as it does in Indiana! From rural land to limestone quarries to forests, Indiana paints a lovely picture and has a welcoming atmosphere. Whether you’re looking to retire or move to Indiana for the first time, NewHomeSource has compiled a list of the 10 most affordable cities in the state to help inform your choice.

1. Muncie

Home Price to Income Ratio: 2.17

Average Property Tax: $669

Median Household Income: $33,944

The city of Muncie takes the top spot on our list of most affordable Indiana cities. Home to over 70,000 residents, Muncie is a treasure trove of opportunities. Check out the David Owsley Museum of Art at Ball State University or work up a sweat jogging along Cardinal Greenway Muncie Depot Trailhead. Muncie is home to numerous parks, including the one alongside White River, so you’ll never have to journey far to enjoy fresh air.

2. New Castle

Home Price to Income Ratio: 1.90

Average Property Tax: $594

Median Household Income: $38,545

Located 44 miles east of Indianapolis, New Castle is a little city surrounded by rural land. Despite its size, New Castle is home to something huge – the world’s largest high school gymnasium! It once seated over 10,000 spectators at a single event. If you’re a basketball fan, be sure to check out the Indiana Basketball Hall of Fame.

3. Connersville

Home Price to Income Ratio: 2.09

Average Property Tax: $593

Median Household Income: $34,201

Connersville is the county seat of Fayette County. Have a relaxing day at Roberts Park or practice your golf swing at Willowbrook Country Club. The adjacent fairgrounds park offers fun for the whole family.

4. Richmond

Home Price to Income Ratio: 2.23

Average Property Tax: $796

Median Household Income: $39,724

Richmond is situated along the Indiana-Ohio border. Downtown Richmond hosts a variety of attractions including a science museum, football museum, the Starr Gennett Building, and Gennett Mansion. If you’re looking to stretch your legs, try hiking one of the many trails, such as the one that wraps around the geological wonder of Thistlethwaite Falls or Morton Lake Dam.

5. Peru

Home Price to Income Ratio:1.56

Average Property Tax: $312

Median Household Income: $39,267

Peru is a little city located along the Wabash River. Take a stroll down River Walkway Park and enjoy the open space and trickling creek. For entertainment, check out the amateur performers and vintage photographs at the Circus City Festival Museum.

6. Marion

Home Price to Income Ratio: 2.06

Average Property Tax: $434

Median Household Income: $32,977

Located northeast of Indianapolis, Marion is the county seat of Grant County. Marion is home to a university, country, club, waterpark, and more. If you’re a fan of quilting, be sure to check out the Quilters Hall of Fame Museum, which features a variety of quilt patterns and artistic, multicolored displays. 

7. Logansport

Home Price to Income Ratio: 1.77

Average Property Tax: $521

Median Household Income: $59,459

Logansport is located halfway between Lafayette and Fort Wayne, making it a breeze if you wish to travel to either. The city is divided by the Wabash River and Eel River, and there are ample parks and hiking trails for a picturesque backdrop on your morning run. With restaurants and winery lining the river, you can spend your days sampling a variety of food as you make your way around town!

8. Wabash

Home Price to Income Ratio: 2.95

Average Property Tax: $379

Median Household Income: $44,973

The spotlight’s on Wabash! The city claims to be the first electrically lit city in the world. Even though that declaration is a stretch of the imagination, Wabash is a bright place to call home. Visit the Charley Creek Gardens and admire the greenery, catch a live performance at the Honeywell Center, or hike the trails around Charley Creek Falls. Whatever you choose, you can plan on having a good time.

9. Kokomo

Home Price to Income Ratio: 1.95

Average Property Tax: $624

Median Household Income: $45,797

Welcome to Kokomo – a charming city packed with character. Step back in time and visit the Seiberling Mansion, a colorful home built in Queen Anne style in 1889. Or enjoy mingling with friends at one of the country clubs. The Wildcat Creek meanders through the city, and you can enjoy a myriad of restaurants and entertainment facilities such as an aquatic center and sports stadium built creekside.

10. Huntington

Home Price to Income Ratio: 1.86

Average Property Tax: $679

Median Household Income: $43,955

Known as “Lime City” for its abundant limestone quarries, Huntington rounds out our list of top 10 most affordable cities. Residents can explore the city’s famous limestone quarries along trails such as Lime City Trail. For more year-round hiking opportunities, stroll on over to Pehkokia Woods. In addition to its open spaces, Huntington is home to all the urban amenities you’ll need, including restaurants, grocery stores, and houses of worship.

Cities with the Best Home Price to Income Ratio

While the list above is sorted by the lowest overall cost of living index, the following cities have the lowest home price to income ratio, meaning you can get more home for your money.

• Peru
• Lake Station
• Logansport