Cost of Living in Indianapolis, IN [2025]

As the state's capital and most populous city, Indianapolis is a compelling place to plant roots, and it certainly doesn’t hurt that the city has a 14.3% lower cost of living compared to the U.S. national average.

Indianapolis is experiencing significant growth due to its relatively low cost of living and numerous job opportunities, and it remains significantly less expensive than other big cities like Chicago or New York City.

In this guide, we outline the cost of living in Indianapolis and dive deep into the type of expenses you can expect if you’re moving to Indy.

Cost of Living in Indianapolis, IN

What Is the Cost of Living in Indianapolis, IN?

Indianapolis offers residents an affordable cost of living and a strong job market. According to Sperling’s BestPlaces, the cost of living is 14.3% lower than the average U.S. city.

Housing is remarkably inexpensive, as are utilities and groceries. Here's a breakdown of the categories.

Where Is the Cost of Living Highest in Indianapolis, IN?

Some parts of Indianapolis are more expensive than others, including Downtown Indianapolis. In this neighborhood, renters have access to more amenities, including on-site fitness centers, walkability to nightlife, bars, and pubs, and shopping centers.

There's also an iconic downtown canal that connects with the Indianapolis Cultural Trail. The average rent in Downtown Indianapolis for a two-bedroom apartment is $1,730. Rents are even higher in neighborhoods like Broad Ripple, with average rent prices for a two-bedroom apartment sitting at $2,268.

Where Is the Cost of Living Most Affordable in Indianapolis, IN?

If you're on a budget, there are plenty of affordable areas in Indianapolis to choose from, including Irvington. As of August 2025, the average rent for a one-bedroom apartment in Irvington is $810. This rate is much lower than the overall national average for one-bedroom apartments, which stands at $1,757, which is 116.9% more than renters may spend in Irvington.

As with any neighborhood, it's important to check on the crime in any area you choose to live in before signing a lease.

What Is the Average and Median Rent in Indianapolis, IN?

According to our latest data from August 2025, the average rate across all rental units stands at $1,452. Much lower than the national average of $2,102, meaning Indianapolis renters have an average savings of 30.9%.

As of August 2025, the overall median rent in Indianapolis has risen 0.5% in the last month and 2.3% year over year, a sign of the city’s growing appeal. The median rent for a one-bedroom apartment is $1,077 per month, and it is $1,276 per month for a two-bedroom apartment.

Median rents are also below the national U.S. median, which sits at $1,402. Indianapolis ranks alongside other cities such as Omaha, Nebraska ($1,261 median rent); New Orleans, Louisiana ($1,249 median rent); and Albuquerque, New Mexico ($1,227 median rent).

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How Much Is a One-Bedroom Apartment in Indianapolis, IN?

Our data shows the average price of a one-bedroom apartment in Indianapolis, Indiana, is $1,285. Rent prices will vary based on location and amenities.

Note: We used internal data and cross-referenced with neighborhood data from Rent.com to give you the most accurate snapshot of rents across Indianapolis as of July 2025.

How Much Is a Two-Bedroom Apartment in Indianapolis, IN

As of July 2025, the average rent for a two-bedroom apartment in Indianapolis is $1,701.

Rent prices vary a lot by neighborhood. Renters looking for apartments in Broad Ripple can expect to spend an average of $2,268, while those in Crown Hill can expect to spend approximately $1,150, which is about 49.5% less.

Note: We used internal data and cross-referenced with neighborhood data from Rent.com to give you the most accurate snapshot of rents across Indianapolis as of July 2025.

How Much Is Housing in Indianapolis?

Home values in Indianapolis are reasonable, hovering around $221,900. Housing prices are approximately 34.4% less than the national U.S. average, which currently stands at $338,100.

What Salary Do I Need to Live in Indianapolis, IN?

It's important to figure out how much you can spend on rent versus how much you earn each year. We recommend using the 30% rule, which states you shouldn't spend more than 30% of your gross monthly salary on rent.

If you rent a one-bedroom apartment that costs $1,285 a month, you should earn at least $51,396 a year, $4,283 a month, or $24.71 an hour. Of course, you can always look in less popular neighborhoods or find a roommate to slash your costs on rent.

Having trouble deciding how much rent you can afford? Try using a rent calculator.

Keep in mind that your salary may differ from the living wage, defined as the minimum amount of money needed to live above the poverty threshold. You can look at MIT's data to see that while the minimum wage is $7.25 per hour in Indianapolis, the city's living wage is $20.81 per hour. This figure also excludes eating out, entertainment, and travel expenses and doesn't allow for an emergency fund, student debt repayments, or other savings.

The good news is that the median household income and hourly wage are above the living wage and our recommended 30% rule. According to the U.S. Census Bureau, the estimated median household income in Indianapolis at the end of 2024 was around $66,629 a year, $5,552.42 per month, or $32.03 per hour. That's lower than the U.S. median household income of $80,610, but Indianapolis has a very reasonable cost of living.

How Much Is Transportation in Indianapolis, IN?

Indianapolis is rapidly growing with pubs, dining, and live music venues. Seeing all of the city means transportation will likely be one of your major expenses. Single adults without children should expect to spend $10,627 on transportation annually. A family of two with full-time employed adults and two children will pay $17,825 a year to get around town.

Indianapolis residents rely on cars. Even though it’s a car-centric city, you can choose to live in neighborhoods with better public transit access. For example, Downtown Indianapolis has an 81 walk score and a 91 bike score. The city offers a reliable public transportation system, as well as options for biking or walking to work.

IndyGo connects the city with bus transport and park-and-ride opportunities. Fares start at $1.75 for a two-hour transfer ticket and go up to $60 for a 31-day pass. Reduced rates are available for eligible individuals. The Indiana Pacers Bikeshare service offers bikes starting between $2 and $5 per ride (classic versus electric) and $0.20 to $0.25 per minute with no time limits. An annual pass for the bikeshare costs $150 per year.

How Much Are Groceries in Indianapolis?

According to MIT estimates, a single full-time employed adult without children who cooks their own meals (including snacks) spends approximately $3,990 per year on food in Indianapolis. A family of two working adults and two children spends an average of $11,694 a year on food.

If you want to savor Indy’s food culture, you'll spend an average of $25 on a meal at an inexpensive restaurant without appetizers or alcohol, based on data from Numbeo. A three-course dinner for two at a midrange restaurant will cost you $77.50 on average.

How Much Is Child Care in Indianapolis, IN?

Child care is expensive in practically every U.S. city, and it accounts for a significant portion of any parent's monthly budget. According to MIT Living Wage data, the average cost of child care in Indianapolis is $13,645 a year or $24,388 for two children.

Parents can get creative by switching to remote work or exploring child care options outside the city, where they may find more affordable options.

How Much Is Healthcare in Indianapolis, IN?

Healthcare is a significant expense, regardless of where you live. MIT used data from the Bureau of Labor Statistics and the Agency for Healthcare Research and Quality to determine that the typical health expenditure for a single full-time working adult in Indianapolis is $3,241 per year. For a family of two adults and two children, it will increase up to $9,598 per year.

How Much Are Utilities in Indianapolis, IN?

In Indianapolis, a basic utility bill—including electricity, heating, cooling, water, and garbage for a 915-square-foot apartment—averages $225.74 a month, according to Numbeo. Of course, there's more to budget for than the basic utility bill.

A basic phone plan and internet will increase the total monthly cost of utilities by approximately $145 for a grand total of $370.74 per month on average.

Winters can get cold in Indianapolis, where extreme weather like snow and wind is common. You’ll likely need to budget more for your utility bills during the wintertime.

Indianapolis, IN, Fitness and Entertainment

If you are a gym-goer, prepare to shell out an additional $40.11 per month in membership fees. However, you may save on the gym by looking for an apartment complex with an on-site fitness center.

Those looking for free outdoor recreation can visit Eagle Creek Park, Pleasant Run Trail, and White River State Park for outdoor adventures. If your preferred type of entertainment is going to the movies, it will cost you about $14.75 per ticket, excluding popcorn and snacks.

How Much Are Taxes in Indianapolis, IN?

Indiana is a relatively tax-friendly state with a flat individual income tax rate of 3.05%. Unlike the federal income tax system, Indianapolis' tax rate is the same whether you're wealthy or working a living wage. Retirees don't have to worry about their Social Security income being taxed either.

Some counties may charge additional taxes, and the statewide sales tax is 7.00%. Property taxes are also low at just 0.71% for owner-occupied homes.

Overall, Indiana residents tend to pay less in taxes than the national average. In the 2022 fiscal year, Indiana ranked 31st on the Tax Foundation’s list of state tax collections per capita, with an average of $5,768 compared to the U.S. average of $7,109.

Indianapolis Job Market

Indianapolis traditionally has a stable job market. As of June 2025, Indianapolis' unemployment rate stands at 3.5%, while the national U.S. rate stands at 4.4%. The city is home to major employers like FedEx, Indiana University Health, and Eli Lilly, and, on a broader scale, its larger employers are concentrated in sectors such as logistics, science, and technology.

With a lower cost of living compared to other U.S. cities and steady employment opportunities, it’s an appealing location for young professionals and families.

Find Your Next Apartment in Indianapolis, IN

Indianapolis’ affordability, numerous green spaces, and comfortable lifestyle make it a great place to live, work, and play. With the right tools, you can find an apartment that checks all the boxes, whether you’re moving from another state or relocating within the city.

If you’re ready to find a new apartment, take the personalized Apartment List quiz to meet your perfect matches. With us, you’ll spend five minutes and save 50 hours searching.

FAQs: What to Know About the Cost of Living in Indianapolis 2025

How expensive is an apartment in Indianapolis?

The overall median rent in Indianapolis is $1,214 a month. The median rent for a one-bedroom apartment is $1,045 a month and a two-bedroom apartment is $1,237 a month.

What is the cheapest rent in Indianapolis?

The cheapest rent in Indianapolis is a one-bedroom apartment where the median rent is $1,045 a month.

How expensive is it to live in Indianapolis?

The median rent for one-bedroom apartment is $1,045 a month. A two-bedroom apartment is $1,237 a month. A single adult will spend an average of $3,856 on food, $3,383 on healthcare, and $10,616 on transportation.

What is the population of Indianapolis?

According to the U.S. Census Bureau, the population of Indianapolis was 879,293 in 2023. The population of the entire state of Indiana was 6,924,275 during the same time period.

What is a good salary in Indianapolis?

We recommend sticking to the 30% rule and spending no more than 30% of your take-home pay on rent. If you rent a one-bedroom apartment at $1,045 a month, you should earn at least $41,800 a year or $3,483.33 a month, or $21.73 an hour.