Cost of Living in Indianapolis, IN [2024]

As the state's capital and most populous city, Indianapolis boasts a lively and walkable downtown, the world's largest children's museum, scores of sports teams, and recreation trails. There are even urban canals and gondola rides for a unique city experience. When you live in Indianapolis, you have access to a big city living with a reasonable price tag. It's easy to see why Indy is one of the best places to live in Indiana!

Indianapolis is experiencing significant growth due to its incredible cost of living and job opportunities, though is still far less expensive than Chicago or New York City. Don't worry if you're unsure where to start and how to assess Indianapolis' cost of living. We put together a guide outlining the cost of living to help you figure out whether or not moving to Indianapolis is the right choice for you and your finances.

Cost of Living in Indianapolis

What Is the Cost of Living in Indianapolis?

Indianapolis is a highly affordable city, with a cost of living 7% lower than the average U.S. city. Residents in Indianapolis spend, on average, $4,220 a month to live in the city.

How Much Is Rent in Indianapolis?

Currently, the median rent in Indianapolis is $1,227 overall. For a one-bedroom, that median rate is $1,056, while it goes up to $1,251 a month for a two-bedroom.

Before you start apartment hunting in Indianapolis and looking for a great deal, you need to figure out how much rent you can afford.

How Much Is Housing in Indianapolis?

If you're not looking to rent, then know that home values in Indianapolis hover around $184,600, with residents spending around $1,337 a month on housing costs including their mortgages.

What Salary Do I Need to Live in Indianapolis?

Take a look at rent prices to figure out a recommended salary. When you use the 30% rule, you can get a rough estimate of the salary needed to rent an apartment in Indianapolis comfortably. Of course, you can always look in less popular neighborhoods or find a roommate to slash your costs on rent.

• If you are renting an average-priced 1-bedroom apartment in Indianapolis, your annual salary should be around $42,240 or higher.
• If you are renting an average-priced 2-bedroom apartment in Indianapolis, your annual salary should be around $50,040 or higher.

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. For example, the minimum wage is $7.25 per hour in Indianapolis, but the city's living wage is $21.53 per hour. This figure also excludes eating out, entertainment, and travel expenses and doesn't allow for an emergency fund or other savings. According to the U.S. Census Bureau, the estimated median household income in Indianapolis at the end of 2021 was around $59,110 a year.

How Much Is Transportation in Indianapolis?

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 should expect to spend $10,616 on transportation annually. If you are a family of two full-time employed adults and a child, you will pay $17,808 a year to get around town.

Indianapolis residents rely on cars to get around, though you can ditch the car and save a bundle if you choose a neighborhood with public transportation. The city offers a reliable public transportation system and options for biking or strolling to work. IndyGO also connects the city with bus transport and Park & Ride opportunities. Fares start at $1.75 for a 2-hour transfer ticket and go up to $60 for a 31-day pass. The Indiana Pacers Bikeshare offers bikes starting at $1 per ride and $0.15 per minute with no time limits.

How Much Are Food Costs in Indianapolis?

According to MIT estimates, a single full-time employed adult that cooks their meals (including snacks) spends approximately $3,939 per year on food in Indianapolis. However, Indianapolis has a growing food scene and was voted the #1 historic public food market in the U.S. by Country Living Magazine.

If you want to savor what Indy has to offer, you'll spend an average of $25 on a meal at an inexpensive restaurant without appetizers and alcohol. Having dinner for two people at a mid-range restaurant will cost you $75 on average. Keep in mind dining out in Chicago costs around 10% more than in Indianapolis. So if you are moving from the Windy City, you win both in terms of affordable housing and fabulous food options.

How Much Is Healthcare in Indianapolis?

Healthcare is also a significant cost, no matter where you live. MIT uses data from the Bureau of Labor Statistics and the Agency for Healthcare Research and Quality to determine the typical health expenditure for a single full-time working adult in Indianapolis is $3,413 per year. For a family of two adults and a child, it will increase up to $11,576 per year.

How Much Are Utilities in Indianapolis?

In Indianapolis, a basic utility bill, including electricity, heating, cooling, water, and garbage for a 915 sq ft apartment, averages $254.44 a month. Of course, there's more to budget for than the average utility bill/ Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) will increase the total monthly cost of utilities by approximately $69.79.

Fitness and Entertainment in Indianapolis

If you are a gym-goer, prepare to shell out another $43 on monthly membership fees. You can also save on the gym by looking for an apartment complex with an on-site fitness center. If your preferred type of entertainment is going to the movies, it will cost you about $12 per ticket, excluding popcorn and snacks.

Other Expenses to Consider in Indianapolis

Indiana is a relatively tax-friendly state with a flat state income tax rate of 3.23%. 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 tax, and the statewide sales tax is 7%. Property taxes are also low at just 0.81%.

Job Market in Indianapolis

Future job growth in Indianapolis is projected to rise 37.5% over the next decade, which is significantly higher than the 33.5% growth rate in the U.S. The city is currently the 19th largest economic region in the country, with growth in finance, insurance, manufacturing, health care, government, education, and professional and business services. There's also a unique sports and auto racing scene that brings tourism to the city.

Moving to Indianapolis

Now that you have a wealth of info about the cost of living in Indianapolis, you can start your apartment hunt. Start your Indianapolis apartment search today with this quiz!

If living in the heart of the city is a little too pricey for you, or you want to save more, check out our round-up of cheap apartments in Indianapolis.

FAQs: Cost of Living in Indianapolis

How far is Indianapolis from Chicago?

Indianapolis is 183 miles away from Chicago. It takes 2 hours and 58 minutes to get to Chicago from Indianapolis by car, 19 hours by bike, and 61 hours by foot.

How far is Cincinnati from Indianapolis?

Indianapolis is 112 miles away from Cincinnati. It takes 1 hour and 48 minutes to get to Cincinnati from Indianapolis by car, 10 hours by bike, and 36 hours by foot.

What is the population of Indianapolis?

According to the U.S. Census Bureau, the population of Indianapolis is 882,039. It is the most populated city in the state of Indiana.