Midwestern beauty has never looked as good as it does in Indiana! From rural land to limestone quarries to forests, Indiana paints a lovely picture and has a welcoming atmosphere. Whether you’re looking to retire or move to Indiana for the first time, NewHomeSource has compiled a list of the 10 most affordable cities in the state to help inform your choice.
1. Muncie
Home Price to Income Ratio: 2.17
Average Property Tax: $669
Median Household Income: $33,944
The city of Muncie takes the top spot on our list of most affordable Indiana cities. Home to over 70,000 residents, Muncie is a treasure trove of opportunities. Check out the David Owsley Museum of Art at Ball State University or work up a sweat jogging along Cardinal Greenway Muncie Depot Trailhead. Muncie is home to numerous parks, including the one alongside White River, so you’ll never have to journey far to enjoy fresh air.
2. New Castle
Home Price to Income Ratio: 1.90
Average Property Tax: $594
Median Household Income: $38,545
Located 44 miles east of Indianapolis, New Castle is a little city surrounded by rural land. Despite its size, New Castle is home to something huge – the world’s largest high school gymnasium! It once seated over 10,000 spectators at a single event. If you’re a basketball fan, be sure to check out the Indiana Basketball Hall of Fame.
3. Connersville
Home Price to Income Ratio: 2.09
Average Property Tax: $593
Median Household Income: $34,201
Connersville is the county seat of Fayette County. Have a relaxing day at Roberts Park or practice your golf swing at Willowbrook Country Club. The adjacent fairgrounds park offers fun for the whole family.
4. Richmond
Home Price to Income Ratio: 2.23
Average Property Tax: $796
Median Household Income: $39,724
Richmond is situated along the Indiana-Ohio border. Downtown Richmond hosts a variety of attractions including a science museum, football museum, the Starr Gennett Building, and Gennett Mansion. If you’re looking to stretch your legs, try hiking one of the many trails, such as the one that wraps around the geological wonder of Thistlethwaite Falls or Morton Lake Dam.
5. Peru
Home Price to Income Ratio:1.56
Average Property Tax: $312
Median Household Income: $39,267
Peru is a little city located along the Wabash River. Take a stroll down River Walkway Park and enjoy the open space and trickling creek. For entertainment, check out the amateur performers and vintage photographs at the Circus City Festival Museum.
6. Marion
Home Price to Income Ratio: 2.06
Average Property Tax: $434
Median Household Income: $32,977
Located northeast of Indianapolis, Marion is the county seat of Grant County. Marion is home to a university, country, club, waterpark, and more. If you’re a fan of quilting, be sure to check out the Quilters Hall of Fame Museum, which features a variety of quilt patterns and artistic, multicolored displays.
7. Logansport
Home Price to Income Ratio: 1.77
Average Property Tax: $521
Median Household Income: $59,459
Logansport is located halfway between Lafayette and Fort Wayne, making it a breeze if you wish to travel to either. The city is divided by the Wabash River and Eel River, and there are ample parks and hiking trails for a picturesque backdrop on your morning run. With restaurants and winery lining the river, you can spend your days sampling a variety of food as you make your way around town!
8. Wabash
Home Price to Income Ratio: 2.95
Average Property Tax: $379
Median Household Income: $44,973
The spotlight’s on Wabash! The city claims to be the first electrically lit city in the world. Even though that declaration is a stretch of the imagination, Wabash is a bright place to call home. Visit the Charley Creek Gardens and admire the greenery, catch a live performance at the Honeywell Center, or hike the trails around Charley Creek Falls. Whatever you choose, you can plan on having a good time.
9. Kokomo
Home Price to Income Ratio: 1.95
Average Property Tax: $624
Median Household Income: $45,797
Welcome to Kokomo – a charming city packed with character. Step back in time and visit the Seiberling Mansion, a colorful home built in Queen Anne style in 1889. Or enjoy mingling with friends at one of the country clubs. The Wildcat Creek meanders through the city, and you can enjoy a myriad of restaurants and entertainment facilities such as an aquatic center and sports stadium built creekside.
10. Huntington
Home Price to Income Ratio: 1.86
Average Property Tax: $679
Median Household Income: $43,955
Known as “Lime City” for its abundant limestone quarries, Huntington rounds out our list of top 10 most affordable cities. Residents can explore the city’s famous limestone quarries along trails such as Lime City Trail. For more year-round hiking opportunities, stroll on over to Pehkokia Woods. In addition to its open spaces, Huntington is home to all the urban amenities you’ll need, including restaurants, grocery stores, and houses of worship.
Cities with the Best Home Price to Income Ratio
While the list above is sorted by the lowest overall cost of living index, the following cities have the lowest home price to income ratio, meaning you can get more home for your money.
Peru
Lake Station
Logansport
Other Indiana Resources
New Homes for the Amateur Astronomer
10 Best State Parks in Indiana
Best Tiny Home Builders in Indiana
The Top 10 Best Places to Live in Indiana
How to Build a House in Indiana
Most Affordable Cities in Indiana
Your Guide to 2021 Indiana Closing Costs
First-Time Homebuyer Programs in Indiana
2021 Best Suburbs Surrounding Indianapolis
Sarah Scott
Sarah graduated from Trinity University in 2012 with a degree in International Relations and Political Science. She writes blogs on new homes, decor, communities, and more for NewHomeSource. When she's not writing, you can find her spending time with her three cats.