Cost of Living in Indianapolis

Indiana · Population: 885,860 · Updated 2026

Below Average
Cost Index
95.7
100 = US avg
Median Income
$66K
Annual household
Median Rent
$1,156/mo
2-bedroom unit
Rent Burden
21%
Income to rent ratio
Cost Category Breakdown

Indexed to national average (100)

Housing68.0
Groceries100.0
Utilities100.0
Transportation100.0
Healthcare100.0
Economic Details
Median Home Value$225K
State Income Tax3.05%
Unemployment Rate2.5%
Est. Net Income$64K/yr
Affordability Score
102
out of 100
Below national average cost
Salary Converter for Indianapolis

See what salary you'd need in another city to match your purchasing power in Indianapolis.

$75,000

About Indianapolis

Indianapolis offers a remarkably affordable cost of living with a diversified economy spanning healthcare, manufacturing, and sports. It's one of the most underrated cities in the Midwest for young professionals.

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Frequently Asked Questions

Is Indianapolis expensive?

Indianapolis has a cost of living index of 95.7, where 100 represents the national average. This is close to the national average.

What salary do you need to live comfortably in Indianapolis?

Based on a rent-to-income ratio of 30%, you'd need at least $46,240 to afford the median 2-bedroom apartment in Indianapolis and maintain basic expenses.

What is the median rent in Indianapolis?

The median 2-bedroom rent in Indianapolis is $1,156 per month, according to HUD Fair Market Rent data.