Cost of Living in Indianapolis, IN [2025]

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, IN

What Is the Cost of Living in Indianapolis, IN?

Indianapolis enjoys a highly affordable city and a strong job market. According to Best Places, the cost of living/ is 14.3% lower than the average U.S. city. Housing is particularly inexpensive, as well as utilities and groceries. Here's a look at how the categories break down.

You can also look at our Apartment List data to get an idea of the cost of living in Indianapolis. The average monthly spending in Indianapolis is $4,115 and is 10% less expensive than the average city in our database.

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

Some parts of Indianapolis are more expensive than others, including Downtown Indianapolis. Renters enjoy 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. Rents in Downtown Indianapolis climb as high as $3,250 with an average rent of $1,484.

Where is the Cost of Living Lowest in Indianapolis, IN?

If you're on a budget, there are plenty of affordable areas in Indianapolis to choose from, including Crooked Creek. Rents range from $750 to $1,300 with an average rent of $1,061 a month. As with any metro area, it's important to check on the crime in any area you choose to live before signing a lease.

How Much Is Rent in Indianapolis?

As of January 2025, the overall median rent in Indianapolis is $1,214 after falling 0.6% last month, but prices remain up 0.4% year-over-year. The median rent for a one-bedroom apartment is $1,045 a month, and a two-bedroom apartment is $1,237 a month.

What Salary Do I Need to Live in Indianapolis?

It's important to figure out how much you can spend on rent vs. how much you earn each year. We recommend using the 30% rule, which states you shouldn't spend more than 30% of your salary on rent. If you rent a one-bedroom apartment that costs $1,045 a month, you should earn at least $41,800 a year, $3,483.33 a month, or $21.73 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 $20.44 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 the median household income and hourly wage is 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 $62,995 a year, $5,249.58 per month, or $30.29 per hour. That's lower than the U.S. median household income of $78,538, but Indianapolis has a very reasonable cost of living.

How Much Is Housing in Indianapolis?

If you want to eventually purchase real estate, then know that home values in Indianapolis hover around $221,900, which is considerably lower than the U.S. average of $338,100.

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 two children, 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 Groceries in Indianapolis?

According to MIT estimates, a single full-time employed adult that cooks their meals (including snacks) spends approximately $3,856 per year on food in Indianapolis. A family of two working adults and two children spend $11,334 a year on food. 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 Childcare in Indianapolis

Affording childcare is also a significant part of a parent's monthly budget. The average cost of childcare in Indianapolis is $10,693 a year or $19,175 for two children. Parents can get creative with a remote schedule or looking for childcare options outside of the city where there may be more affordable 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 $3,383 per year. For a family of two adults and two children, it will increase up to $9,228 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 $203.33 a month. Of course, there's more to budget for than the average utility bill/ A basic phone plan and Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) will increase the total monthly cost of utilities by approximately $135.18, for a grand total of $338.51.

Winters can get cold in Indianapolis where snow and wind is common. You may need to add a little more to your utility budget during winter.

Indianapolis, IN Fitness & Entertainment

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.

How Much Are Taxes in Indianapolis, IN

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%.

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: 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. However, the living wage in Indianapolis is $20.44 an hour. This figure covers the basics for food, housing, transportation and doesn't account for dining out, entertainment, or debt repayments. According to the U.S. Census Bureau, the median household income in Indianapolis is $62,995 a year or $5,249.58 a month, which is lower than the U.S. average of $78,538 a year. Fortunately, the cost of living in Indianapolis is much lower than the rest of the country.