Midwest · Updated October 2026
Indiana in numbers, from the same public data Locustep uses to rank all 50 states: rent, pay, taxes, safety, disaster risk and weather, plus the cities worth a look.
Two-bedroom rent
$1,302/mo
U.S. average $1,759
HUD Fair Market Rents FY2027 (40th percentile, population-weighted across the state)
Rent vs. income
21.7%
of median household income for a year of two-bedroom rent
HUD Fair Market Rents FY2027 ÷ 2024 ACS 1-year estimates (Census B19013)
State income tax
2.95%
top marginal rate, single filer
State revenue departments, 2026 income tax rates (sources listed per state)
Property tax
0.74%
effective rate on owner-occupied homes
Everyday costs
97.7
index, housing excluded (U.S. = 100)
BEA Regional Price Parities, 2024 (released February 2026), housing and utilities removed
Natural disaster risk
25th
percentile, FEMA expected annual loss (lower is safer)
Where Indiana stands out: the 4th lowest top income-tax rate among the 50 states.
What to weigh: the 10th lowest median household income.
Overall, a married couple on the U.S. median household income would pay about 6.6% of it in state and local income, property and sales tax here, the 19th lowest of the 50 states.
Average afternoon highs and overnight lows in Indianapolis (Indianapolis station), NOAA 1991–2020 normals.
| Season | High | Low |
|---|---|---|
| Winter (Dec–Feb) | 39°F | 24°F |
| Spring (Mar–May) | 63°F | 43°F |
| Summer (Jun–Aug) | 84°F | 65°F |
| Fall (Sep–Nov) | 65°F | 46°F |
$1,536/mo two-bedroom · $1,336 one-bedroom (Indianapolis-Carmel, IN HUD Metro FMR Area)
Indianapolis is an affordable, flat Midwestern capital with a walkable downtown canal, a serious sports culture and a big logistics sector. Winters are grey, summers humid, and your housing dollar goes remarkably far.
$1,248/mo two-bedroom · $1,026 one-bedroom (Fort Wayne, IN HUD Metro FMR Area)
Fort Wayne is a mid-sized northeastern Indiana city with a manufacturing base, a revitalised riverfront and some of the lowest housing costs in the country. Quiet, family-oriented and conservative.
$1,252/mo two-bedroom · $1,096 one-bedroom (Bloomington, IN HUD Metro FMR Area)
Bloomington is Indiana University's town — limestone architecture, wooded hills, a strong music school and a young, liberal population. Cheap, walkable near campus, and much quieter over the summer.
$1,536/mo two-bedroom · $1,336 one-bedroom (Indianapolis-Carmel, IN HUD Metro FMR Area)
Carmel is an affluent, meticulously planned suburb north of Indianapolis known for roundabouts, top schools and an arts district. Safe and well-run, expensive for Indiana, and entirely car-oriented.
$1,273/mo two-bedroom · $1,070 one-bedroom (Lafayette-West Lafayette, IN HUD Metro FMR Area)
Lafayette, with West Lafayette across the Wabash, is home to Purdue University and a growing tech and advanced-manufacturing base. Affordable, young, and an hour from Indianapolis.
$1,127/mo two-bedroom · $872 one-bedroom (Evansville, IN MSA)
Evansville sits on the Ohio River in Indiana's southwest corner, with manufacturing, healthcare and a low cost of living. Milder winters than the north of the state, and a slow, settled pace.
$1,276/mo two-bedroom · $1,093 one-bedroom (South Bend-Mishawaka, IN HUD Metro FMR Area)
South Bend is Notre Dame's city, a former manufacturing centre now rebuilding around the university, healthcare and tech. Very cheap housing, heavy lake-effect snow, and a small-city feel.
$1,429/mo two-bedroom · $1,176 one-bedroom (Gary, IN HUD Metro FMR Area)
Valparaiso is a college town in northwest Indiana with a lively courthouse square, near the Indiana Dunes and about an hour from Chicago. Lower taxes and costs than Illinois, with lake-effect snow.
Rents: HUD Fair Market Rents FY2027 (40th percentile, population-weighted across the state) (metro areas). City notes: Locustep.
Closest on Locustep’s match factors: cost, housing, taxes, safety, jobs, schools, healthcare, outdoors, disaster risk and climate.
Ranks compare the 50 states. Locustep updates these figures when the agencies publish new data.
Yes. Indiana’s top marginal income-tax rate for a single filer is 2.95% (Indiana tax law, 2026). Counting property and sales tax too, a married couple on the U.S. median household income would pay about 6.6% of income in state and local taxes (Locustep estimate, 2026).
A typical two-bedroom rents for about $1,302 a month and a one-bedroom for about $1,082, using HUD’s FY2027 Fair Market Rents averaged across the state by population. That is $457 less than the U.S. average of $1,759. Rent in the bigger metros can be well above the state figure.
Leaving housing aside, everyday prices (goods and services other than housing) index at 97.7 against a U.S. average of 100 (BEA, 2024), and the median home value indexes at 67.5 against the U.S. median (Census, 2024). Two-bedroom rent takes 21.7% of the state’s median household income of $71,959.
Indiana recorded 312.9 violent crimes per 100,000 residents in 2024 (FBI), the 24th lowest rate of the 50 states. Crime varies a lot between and within cities, so check the specific area you’re considering.
The main hazards are tornadoes. On FEMA’s National Risk Index, Indiana’s expected yearly loss from natural hazards sits at the 25th percentile nationally (lower is safer). Risk differs sharply by county, so look up the county too.
Places people most often weigh include Indianapolis, Fort Wayne, Bloomington, Carmel and Lafayette. Each has a different cost, climate and character; Locustep compares their rent, disaster risk, weather and pay side by side.