Is Indianapolis Affordable for Renters? [2025]

Yes, Indianapolis is affordable for renters in 2025. The city’s median overall rent is $1,252, which is about 1.71% above than the national average of $1,231, making it one of the more budget-friendly big cities in the Midwest.

Transportation costs in Indianapolis are also notably lower than the national average, with annual expenses for a single adult around $10,627, according to MIT’s Living Wage data, well below the national benchmark for urban areas.

When you consider total living costs, including rent, groceries, transit, and healthcare, Indianapolis stands out as a cost-effective metro for renters who want more space, stable pricing, and convenient access to downtown jobs, shopping, and local amenities.

What Are the Current Trends in Indianapolis’s Rental Market?

Indianapolis’s rental market in 2025 is showing signs of slow, steady growth after several years of pandemic-era fluctuations. As of August 2025, the median overall rent in Indianapolis stands at $1,252, according to Apartment List’s Rent Report, putting it slightly above the national average of $1,231.

Over the past year, rent prices in Indianapolis are up slightly, mirroring rising trends seen across many Midwest cities. The city’s affordability is driving increased interest from remote workers and renters relocating from pricier metros like Chicago and Nashville.

While rent growth in Indy has lagged behind faster-growing markets like Boise or Tampa, it remains stable. So far in 2025, rent increases have averaged under 1%, with many landlords offering incentives like reduced deposits or 4–6 weeks of free rent in under-leased buildings, especially in neighborhoods farther from Downtown.

Experts at MMG Real Estate Advisors predict that with limited new construction and ongoing demand, Indianapolis is projected to see rent growth of around 3.5% in 2025, driven by reduced new construction and steady rental demand.

Average Rent Prices in Indianapolis, IN

Rent prices in Indianapolis fluctuate based on neighborhood, apartment size, and building age. To help you understand what renters are currently paying, here’s a snapshot of average one- and two-bedroom apartment rates across the city in 2025:

What is the Average Rent of a One-Bedroom Apartment in Indianapolis?

As of August 2025, the average rent for a one-bedroom apartment in Indianapolis is $1,297. That number varies depending on the building’s age, location, and amenities. Modern units in neighborhoods like Downtown or Broad Ripple tend to cost more, especially those offering extras like in-unit laundry or secure parking.

In contrast, more affordable options are often found in areas like Eastside or Edgewood, where monthly prices can dip below $950.

What is the Average Rent of a Two-Bedroom Apartment in Indianapolis?

The average rent for a two-bedroom apartment in Indianapolis is $1,533 as of July 2025, about 30% less than the national average of $2,194. Two-bedroom units are a popular pick for roommates, small families, or remote workers needing extra space.

You’ll find premium prices near Mass Ave or Fountain Square, while neighborhoods like Snacks Guion Creek or University Heights tend to offer more affordable two-bedroom options.

How Much Rent Can I Afford in Indianapolis, IN?

Average rents in Indianapolis are well below the national average, making it one of the most affordable large cities in the Midwest, especially when compared to metros with similar amenities and job access.

Here’s how Indianapolis compares in 2025:

*Cost of Living Index (U.S. average = 100) data sourced from BestPlaces.

Indianapolis beats out larger metros like Denver and Chicago in both rent prices and overall affordability, making it a smart choice for renters looking to stretch their budget without sacrificing urban access. Before you start your apartment search, make sure you’re aligned with key rent-to-income rules so you can stay on track financially.

Keep Rent Under 30% of Your Income

A solid starting point for budgeting is to spend no more than 30% of your gross monthly income on rent. For example, if you earn $4,000 per month before taxes, your target rent should stay at or below $1,200.

In Indianapolis, where average rent prices are lower than in most large U.S. cities, many neighborhoods make it easier to stay under that threshold, especially outside the Downtown core.

Budgeting With the 50/30/20 Method

The 50/30/20 rule is a flexible framework for dividing your after-tax income:

• 50% for essentials like housing, utilities, and groceries
• 30% for discretionary spending (think dining out, travel, entertainment)
• 20% for savings or debt repayment

Rent is part of that 50% “needs” bucket., so if your take-home pay is $3,800 a month, you’d want to keep all core expenses under $1,900, not just rent alone. This helps ensure you’re not sacrificing long-term goals for short-term comfort.

The 3x Monthly Rent Rule

Landlords often use the “three times the rent” rule to screen tenants. That means your gross monthly income should be at least three times your rent. For a unit priced at $1,300 per month, you'd need to earn at least $3,900 per month to qualify. While not a budgeting strategy per se, this rule can help you gauge what properties you’re likely to get approved for before applying.

How Does the Overall Cost of Living in Indianapolis Compare to the National Average?

Indianapolis remains one of the more affordable large cities in the U.S. in 2025. The overall cost of living is roughly 15–20% below the national average, driven largely by lower housing costs.

Renters in Indy often find more square footage for less, especially compared to coastal or high-demand metros. While groceries and utilities sit close to national norms, transportation and healthcare tend to be slightly more affordable, helping residents stretch their monthly budgets even further.

Are Utilities and Other Expenses Affordable in Houston?

Overall, utilities in Indianapolis are close to the national average, making them relatively manageable for most renters. The typical monthly electricity bill is about $149.55, slightly under the U.S. average.

Water and gas bills tend to vary based on apartment size and usage but are generally in less than national norms.

Internet service averages around $70.45 per month, and while Indy does have a public bus system (IndyGo), many residents still rely on cars, especially outside the downtown area.

How Does the Cost of Renting Vary by Neighborhood in Indianapolis?

Where you choose to live in Indianapolis has a big impact on your monthly rent. Some areas lean more upscale, while others offer great value with access to parks, transit, or major employers.

Below is a quick snapshot of average rents across six neighborhoods to help you compare options.

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

Rent in Indianapolis’s Cheapest Neighborhoods

Trying to keep your monthly rent in check? Indianapolis has several neighborhoods where average prices fall well below the city average. These areas may not have new construction or luxury amenities, but they deliver excellent value with access to local transit, green space, and daily essentials, making them a smart pick for budget-conscious renters.

Eastside

The Eastside is one of the most budget-friendly areas in Indianapolis, with average one-bedroom rents around $717, about 45% below the city average. It's ideal for renters looking to maximize value without moving too far from the action.

While the neighborhood has lower walk and transit scores, it offers quick access to I-70 and plenty of open space. Housing stock includes modest apartment communities and older single-family rentals. Overall, the Eastside is a strong pick for renters who prioritize savings and don’t mind driving for errands or work.

Edgewood

Located in the southern part of the city, Edgewood combines affordability with residential quiet. Average rents hover around $960 for a one-bedroom and $1,066 for a two-bedroom, well below city averages.

Though transit access is limited, this neighborhood appeals to renters who value peace, space, and low monthly costs. It features a mix of duplexes and garden-style apartments, with quick routes to I-465 for commuters.

Edgewood is a solid option for families or individuals who want room to breathe without straining their budget.

Snacks Guion Creek

Tucked along the northwest edge of Indianapolis, Snacks Guion Creek is a low-cost neighborhood with an average one-bedroom rent of just $964. Though its Walk and Transit Scores are low, the area compensates with wide apartment availability and easy access to I-65.

Many renters here choose it for the mix of affordability and convenience to northwest employers. Most properties are older, but the rent-to-space ratio is solid. It’s a practical choice for those who drive and want to stay within city limits while keeping rent manageable.

University Heights

A go-to for students and faculty, University Heights offers easy access to University of Indianapolis and affordable living, with average one-bedroom rents at just $806. That’s nearly 38% less than the city average.

It’s a solid pick for renters who want to live near campus without paying campus housing rates. Walk and bike scores are decent, and the area includes quiet streets, modest apartment buildings, and quick access to I-65. Overall, it’s a smart choice for anyone looking for affordable housing with nearby educational access.

Rent in Indianapolis’s Most Expensive Neighborhoods

While there are many affordable neighborhoods in Houston, some offer the perks of premium living at a higher price tag. Here are some of the priciest neighborhoods in Houston.

Fountain Square

Fountain Square blends creative energy with urban revival, making it a top pick for renters who prioritize culture and nightlife. The neighborhood features renovated lofts, upscale townhomes, and boutique apartments, many within walking distance of galleries, music venues, and independent restaurants.

While rent prices are some of the highest in the city, renters benefit from easy access to downtown, bikeable streets, and the Cultural Trail. It’s especially popular with creative professionals and remote workers looking for neighborhood character and entertainment.

If you're willing to pay a premium for an artsy, walkable community with a buzzy restaurant scene, Fountain Square delivers. Just know parking can be tight, and newer buildings often come with premium amenity fees.

Meridian-Kessler

One of Indy’s most sought-after residential neighborhoods, Meridian-Kessler is known for tree-lined streets, historic homes, and a strong community feel. Rental prices reflect its desirability, especially for updated duplexes, townhomes, and high-end apartments near College Avenue.

This northside neighborhood offers a suburban-meets-urban vibe, with charming cafes, parks, and local shops nearby. It’s a favorite among professionals, small families, and long-term renters who value architectural charm and quiet surroundings.

While it’s not the cheapest neighborhood in Indianapolis, the appeal lies in its stable housing market, access to top-rated schools, and proximity to downtown without the congestion. Expect higher rents, especially for units with modern updates or near the Red Line.

Downtown Indianapolis

Downtown Indy is the epicenter of business, entertainment, and high-rise living. It’s home to luxury apartments, historic loft conversions, and full-amenity buildings with skyline views, making it one of the city’s most expensive places to rent.

You’re paying for access: walk to major employers, restaurants, Lucas Oil Stadium, and White River State Park. Transit is strong here too, with multiple bus routes and proximity to the Cultural Trail for bike commuting.

Downtown appeals to young professionals, executives, and renters who want to be close to everything. Just keep in mind that rent premiums are steep, and parking can add a few hundred dollars per month, depending on the building.

Broad Ripple

A longtime favorite for students and young professionals, Broad Ripple balances nightlife with neighborhood charm. It’s one of the priciest areas outside the city core, especially for newer developments along College Avenue and the Monon Trail.

Renters here enjoy walkable access to coffee shops, gastropubs, and breweries, as well as parks and green space. The area is also a transit hub, with Red Line access and solid bike infrastructure.

While noise and crowds can spike on weekends, the upside is unbeatable convenience and entertainment. Broad Ripple’s rent prices remain high due to consistent demand, especially for well-located one-bedrooms and pet-friendly apartments.

How Much Rent Can I Afford In Indianapolis?

To comfortably afford Indianapolis’s average one-bedroom rent of $1,297, renters should aim to earn at least $51,880 per year (or $4,323 per month) before taxes, based on the 30% rent-to-income rule.

This aligns closely with Indiana’s estimated livable wage for a single adult, which typically falls between $45,000 and $52,000, depending on lifestyle and fixed expenses.

Still, many renters live well below that threshold. Affordable neighborhoods like Eastside, Edgewood, and University Heights, along with options like splitting a two-bedroom or choosing a smaller unit, can make lower incomes more manageable.

Are There Hidden Costs to Renting in Indianapolis?

Yes—beyond your monthly rent, renters in Indianapolis should budget for several extra expenses that can add up fast:

• Renter’s insurance: Commonly required by landlords, with average monthly premiums around $22 per month, depending on coverage and provider.
• Application & admin fees: Most property managers charge $30–$100 for application processing, plus $100–$200 in administrative or lease setup fees.
• Parking & amenities: Reserved parking spaces typically range from $40–$75/month, while access to on-site amenities like fitness centers or storage lockers may carry additional charges.
• Pet fees: Expect a non-refundable pet deposit of $200–$300 per pet, plus monthly pet rent of $20–$40.
• Moving costs: Local moves usually run between $400–$1,200, while long-distance or full-service movers can easily exceed $2,000, depending on distance and services.
• Security deposits: Usually equal to one month’s rent, but some landlords require up to 1.5x rent for higher-risk applicants or luxury units.

Also, watch out for “junk fees” like valet trash, pest control, package handling, or lease processing surcharges. These aren’t always listed upfront but can add $100–$300+ per year to your total cost of living.

What Are the Best Ways to Save on Rent in Indianapolis?

Indianapolis is more affordable than many other major U.S. cities, but rent can still stretch your budget if you’re not strategic. Whether you're relocating or already live here, these renter-friendly tips can help you cut costs and get the most for your money:

1. Explore Local Rental Assistance Programs

The city and state offer support through organizations like the Indianapolis Housing Agency and Indiana Housing & Community Development Authority, which help with housing vouchers, utility relief, and emergency rental aid. These resources are especially useful during life transitions or financial hardship.

2. Time Your Lease for Maximum Leverage

Landlords are more open to negotiation during the winter months, when demand dips. If you’re flexible, signing a lease between November and January can lead to discounts like waived fees, lower deposits, or extra perks such as free parking or a month of free rent.

3. Consider Roommates or Shared Housing

The average two-bedroom apartment in Indianapolis rents for about $1,533, but split with a roommate, that’s under $800 each. Neighborhoods like University Heights, Mapleton-Fall Creek, or Edgewood often have house rentals and shared spaces that can make living more economical without sacrificing location.

4. Focus on Practical Value, Not Just Perks

Skip high-end extras and prioritize proximity to work, safe streets, and walkable grocery options. A great apartment with no gym or rooftop pool can save you hundreds per month, and still check all your boxes.

5. Budget for Move-In Costs in Advance

Application fees, security deposits, moving services, and pet rent can total thousands upfront. Build a savings cushion before your search, so you’re ready to act quickly on deals.

6. Know Indiana’s Tenant Rights

Understanding your legal protections can save you from shady leases or unexpected costs. For example, Indiana doesn’t cap security deposits, but landlords must return them within 45 days. Indiana Legal Help is a great resource for renters wanting to stay informed.

Find an Apartment in Indianapolis, IN

Skip the endless scrolling and let your next apartment come to you. Whether you're eyeing affordable neighborhoods like Eastside and Edgewood or prefer walkable spots like Broad Ripple and Fountain Square, Indianapolis offers a wide range of options for every renter and price point.

Take Apartment List’s quick quiz to get matched with apartments tailored to your budget, must-haves, and move-in schedule. A few minutes now can save you days of searching later.

Is Indianapolis Affordable for Renters? FAQs

Is Renting Cheaper Than Buying a Home in Indianapolis?

Yes, for many renters, especially in the short term. While Indianapolis median home prices are 43% lower than the national average, rising mortgage rates, taxes, and maintenance costs can still add up.

Renting provides flexibility with fewer upfront expenses, making it ideal for students, young professionals, or anyone not planning to settle long-term.

Is Indianapolis’s Rental Market Competitive in 2025?

Generally, no, at least not compared to larger metros. Indianapolis has a relatively stable rental market, though demand is increasing in popular areas like Broad Ripple, Fountain Square, and Downtown. Good listings can still move quickly, so it’s smart to have your documents ready and monitor new openings on Apartment List.

What’s a Livable Wage in Indianapolis?

According to the MIT Living Wage Calculator, a single adult in the Indianapolis metro needs to earn at least $21.54/hour, or about $44,803 annually, to meet basic living costs without assistance. If you have children or significant debt, that number increases.

What If I Can’t Afford Rent in Indianapolis, IN?

There are ways to stretch your budget. Consider neighborhoods like Eastside or Edgewood for lower rent, or explore house shares and two-bedrooms to split costs. The Indianapolis Housing Agency also offers rental support programs for eligible residents, and some nonprofits provide emergency financial aid or utility relief.

Are Utilities Typically Included in Rent in Indianapolis?

Usually not. Most leases in Indianapolis require tenants to pay for electric, gas, water, and internet separately. Some properties may include trash service or water in the base rent, but it varies, so always clarify what’s included before signing.