Cost of Living in Indiana, 2023
Indiana is a great state with lots to offer, including decent schools and even better Universities, drawing basketball fans near and far.
Indiana is an overall happy state, offering residents everything from the hustle and bustle of the city in Indianapolis to suburbs filled with cornfields. Indiana can compete with Chicago, some even saying it’s the better of the two cities because it is smaller and has better winters.
Although Indiana has become such a popular place to live, living costs remain lower than the nation’s average. Thankfully, you can easily find something within your budget by taking a closer look at the cost of living in Indiana. The good news is, we’ve already done all the research, so you don’t have to.
Start by checking out this apartment guide, then keep scrolling for all the details on building your new budget in Indiana.
Indiana Housing Costs
Whether you rent or pay a monthly mortgage, housing costs will be one of your highest living expenses. Get an idea of just how high they can be by building a budget around your anticipated housing costs in your new state.
As previously mentioned, the cost of living in Indiana is lower than the national average. However, you’ll still want to get an idea of what areas might be within your budget, though. For a more detailed breakdown, here is a list of average rent prices in the five best places to live in Indiana, including Evansville, Fort Wayne, Indianapolis, Carmel, and South Bend.
| City | Average 1-Bedroom Rent | Average 2-Bedroom Rent |
|---|---|---|
| Evansville, IN | $802 | $1,052 |
| Fort Wayne, IN | $871 | $1,098 |
| Indianapolis, IN | $934 | $1,122 |
| Carmel, IN | $1,522 | $1,687 |
| South Bend, IN | $847 | $1,106 |
Though Indiana’s rent prices are relatively affordable, you can still save considerably by renting with a roommate. For example, if you rent in Indianapolis and split the two-bedroom apartment costs, you can save approximately $561 per month, which adds up to $6,732 over a 12-month lease!
Indiana has rental properties in all forms, from high-rise modern apartments in the city to single-family homes in the suburbs. There’s something to fit every renter’s taste in Indiana.
Finding the Best Indiana Apartment for You
If you're uncertain about a neighborhood, consider a month-to-month apartment before making a long-term 12 month commitment. If it's your first time renting or if you don't have a high credit score, consider no credit check apartments. Lastly, if you prefer to rent from the owner of an apartment and have a more personal relationship with them rather than property managers, consider a for rent by owner apartment.
Indiana Transportation
Getting around in Indiana can be costly, with average annual transportation costs of $5,356 for a single individual, according to the MIT Living Wage Calculator. If you’re a family of four with two working adults and two children, you can anticipate paying around $14,164 in transportation costs on an annual basis.
The Indiana Department of Transportation (INDOT) is the state’s top public transit agency. An extensive list of the state’s public transportation system by county and city can be found on their website.
Having reliable private transportation is going to be important in Indiana. You can get a better idea of the costs associated with having your vehicle by looking at the average gas prices in the major cities in Indiana with these gas prices:
- Indianapolis: $3.88/gallon
- Fort Wayne: $3.47/gallon
- Evansville: $3.42/gallon
- Carmel: $3.69/gallon
- South Bend: $3.66/gallon
Considering the national average is currently $3.30 per gallon of regular gas, Indiana’s gasoline costs are considerably low, except for Carmel.
Indiana Food Costs
The average single Indiana resident spends around $4,010 annually on food, roughly $334.16 per month. For a family of four with two working adults and two children, these costs nearly triple to $11,812 annually, approximately $984.33 per month.
These figures are associated with food picked up at the local Martin’s Super Market, Needler’s Fresh Market, or Whole Foods Market and entirely prepared in the home. You may also want to budget for additional food costs if you are anything short of a mastermind in the kitchen.
With so many delicious restaurants and iconic Indiana foods, it’s hard to resist a few meals outside of your kitchen. Don’t forget to account for eating out in your budget so you can try out the famous sugar cream pie, pork tenderloin sandwiches, and persimmon pudding.
To get a better idea of how to budget, here’s a look at some of the average costs for a three-course meal for two people in a mid-range restaurant across Indiana:
- Indianapolis: $77.50/meal
- Fort Wayne: $50/meal
- Evansville: $50/meal
- Carmel: $75/meal
- South Bend: $50/meal
Indiana Healthcare Costs
No matter where you choose to live, living a healthy lifestyle should always be among your top priorities. Proper health insurance is essential for staying healthy, whether you only see your doctor for regular checkups or suffer from chronic illnesses. Having good medical coverage can also be helpful should any emergencies arise in your new hometown.
A single adult without children will pay around $3,238 for medical care in a single year, while a family of four with two working adults and two children can expect to pay $8,507, not including child care.
You can check out the federal healthcare marketplace before moving to see what coverage is available in your new state. Since enrollment periods for healthcare typically fall in November, you can report your move to ensure you qualify for out-of-state coverage if your move happens any other time of the year.
If you’re under 26, you still might be able to stay on your parent’s policy even if you’re moving out of state. Check with your current provider to see which doctors fall in the network in your new location to be sure.
Indiana Utilities
Your average utility bills can vary dramatically depending on the city you move to. Considering the national average cost of utilities is $237.93 monthly, the averages throughout the state of Indiana are reasonable. Only the popular city of South Bend is slightly above the national average.
The average cost of monthly utilities, including electricity, heating, cooling, water, and garbage for a 915 square foot apartment, is broken down by the major cities in Indiana:
- Indianapolis: $225.24/month
- Fort Wayne: $156.53/month
- Evansville: $267.33/month
- Carmel: $240.38/month
- South Bend: $208.44/month
Learn more about the estimated utility costs per city!
Remember that these average costs do not include other expenses, such as the internet. The average monthly cost of internet of 60 Mbps or more, unlimited data, or cable/ADSL in these major cities is:
- Indianapolis: $71.80/month
- Fort Wayne: $54.00/month
- Evansville: $58.75/month
- Carmel: $60.40/month
- South Bend: $60.67/month
According to the national average, your monthly cell phone bill will cost you around $127.37 per month. This monthly bill is another you’ll have to keep in mind when budgeting.
To help save on some of your monthly costs, you might be able to bundle your cell phone with your internet provider. Don’t be afraid to ask your provider about these discounts and more, including specials for new customers.
Indiana Fitness and Entertainment
There is no shortage of fitness and entertainment opportunities in Indiana, which is why it’s important to understand the costs associated with them.
Fitness
Indiana is one of the many states that enjoy four distinct seasons year-round. Summers bring warm and humid weather, while winters are cold and snowy. The frigid temperatures of the winter months can make outdoor exercise challenging to maintain year-round. To maintain your fitness year-round, you might want to consider a gym membership.
Thankfully, the average cost of a monthly fitness club membership in Indiana’s major cities is relatively low:
- Indianapolis: $43.00/month
- Fort Wayne: $31.50/month
- Evansville: $15.00/month
- Carmel: $29.20/month
- South Bend: $57.50/month
Indiana has several outdoor activities that can help you save on costs when weather permits, including walking, hiking, climbing, etc. But, if you plan to be outdoors year-round, remember that you’ll have to adjust your wardrobe accordingly, which will also come at an additional cost.
National and State Parks
Indiana is home to three national parks, including:
- Lincoln Boyhood National Memorial
- George Rogers Clark National Historical Park
- Indiana Dunes National Park
In addition to national parks, Indiana also has 24 state parks scattered throughout and eight reservoir properties.
Museums
You’ll also find countless museums in Indiana, great for year-round family entertainment. Some of the state’s most famous museums include:
- The Children’s Museum of Indianapolis
- Grissom Air Museum in Peru -
- Conner Prairie in Fishers
- Science Central in Fort Wayne
- Auburn Cord Duesenberg Automobile Museum in Auburn
Other Expenses to Consider in Indiana
Indiana has had a flat state income tax at 3.23% since 2017. Some counties within the state charge an additional income tax, albeit relatively low. The state sales tax is also 7%.
Additional expenses like movers, storage, hotels, and transportation often come with big moves from out of state. Other optional add-on costs that you may incur once you get to your new home may include additional fees such as apartment application fees, security deposits, pet deposits.
Your new home will also need furnishings, which cost money. You’ll have to account for this spending in your budget since you’ll want to do some decorating to make it feel like a home. To avoid overspending in this area of your move, check out a few tips on how to decorate your apartment on a budget.
What Salary Do You Need to Live in Indiana?
Your recommended salary in Indiana will depend on the type of lifestyle you plan to lead. To determine an ideal salary in your new state, you can look at a few different budgeting options. Keep in mind that the different methods will range drastically and, again, will not necessarily account for extracurricular activities.
Living Wage
The living wage in Indiana is $15.78 an hour, which is the basic wage needed to pay for essentials, such as housing, food, and necessities for an individual adult.
Average Salary Index
The average salary index in Indiana is in the higher range across the country at $65,000 per year, which is roughly $18.19 an hour. However, the U.S. Census Bureau reports that the median household income in Indiana is $61,944.
The 30% Rule
To determine your recommended salary in Indiana, you can also apply the 30% rule, which says should not spend more than one-third of your gross income on rent.
For example, if you’re planning to rent in Indianapolis, the median rent for a one-bedroom is $934. According to the 30% rule, your monthly wages should be at least $3,113.33 or an annual salary of $37,360. For a two-bedroom apartment that costs $1,122, you should earn at least $44,880 per year or $3,740.
Final Thoughts
If you want to move to an incredible state with a strong economy and extra breathing room, Indiana might be the state for you. Register with Apartment List today and start checking out the thousands of available apartments to rent in Indiana!
FAQs: Cost of Living in Indiana
How expensive is an apartment in Indiana?
Average rent prices vary in Indiana. The average rent for a one-bedroom in Indianapolis is $934 and $1,122 for a two bedroom. In South Bend, the average rent for a one bedroom is $847 and a two-bedroom is $1,106. In Evansville, IN, a one bedroom apartment costs $802 and a two bedroom costs $1,052. In Fort Wayne, a one bedroom apartment costs $871 and a two bedroom average $1,098. In Carmel, IN, a one bedroom apartment cots $1,522. A two bedroom apartment in Carmel costs $1,687.
What is the cheapest rent in Indiana?
The cheapest rent in major cities around Indianapolis is $802 for a one bedroom apartment in Evansville. Fort Wayne also has cheap rentes of $872 for a one bedroom apartment.
How expensive is it to live in Indiana?
In Indianapolis, rent averages $934 per month for a one-bedroom apartment. An individual resident in Indiana spends around $4,010 annually on food. A family of four with two working adults and two children will spend about $11,812 annually.
Unfortunately, Indiana does not have a reliable public transportation system and requires a vehicle. Expect to pay at least $3.33 per gallon in Indianapolis when there is not an oil supply issue. Gas in Fort Wayne costs $3.30 a gallon, $3.14 a gallon in Evansville, $3.45 a gallon in Carmel and $3.47 a gallon in South Bend.
How far is Indiana from Ohio?
Indiana is 239.3 miles from Ohio and takes about 3 hours and 40 minutes to drive. There is limited Amtrak service between Indaianpolis and Cleeland and takes nearly 8 hours, including a layover.
How far is Indiana from Michigan?
It's 320.3 miles between Indiana and Michigan and takes about five hours to drive.
How far is Indiana from New York?
Indiana is 739.7 miles to New York and takes about eleven and a half hours to drive.
What is the population of Indiana?
According to the US Census Bureau, 6,833,037 people live in the state of Indiana.
What is a good salary in Indiana?
According to the U.S. Census Bureau, the median household income in Indiana is or about $61,944. If you want to comfortably afford a one bedroom apartment in Indiana, you should consider only spending 30% of your take home pay on rent. If you rent a one bedroom apartment in Indianapolis for $934 a month, your annual salary should be around $37,360 or $3,113.33 per month.
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