Indiana is one of the most affordable states in the U.S.
In fact, all 10 of its lowest-priced markets offer mortgage payments under $1,200 per month.
At a time in U.S. history when mortgage rates and home prices keep breaking records in the worst ways for new buyers, Indiana offers a safe haven from skyrocketing housing costs.
Need affordable housing? You may want to check out these cities.
Affordable Indiana Cities and Typical Home Prices
| Ranking | City | Average Home Cost |
|---|---|---|
| 1 | Gary | $84,936 |
| 2 | Anderson | $127,030 |
| 3 | East Chicago | $128,237 |
| 4 | Marion | $129,598 |
| 5 | Peru | $145,308 |
| 6 | Muncie | $145,370 |
| 7 | Logansport | $150,769 |
| 8 | Richmond | $151,352 |
| 9 | Terre Haute | $153,666 |
| 10 | Connersville | $155,594 |
1. Gary - $84,936
Gary has a rich history in the steel industry – in fact, it was founded by a steel company. But there’s more to it than industrial history. It’s also known as the birthplace of Michael Jackson, and many fans make their way to Jackson Street to pay respects to this day. As the most affordable city on our list, buying the average home would mean estimated mortgage payments of just $647 per month.
2. Anderson - $127,030
A city of around 55,000, Anderson offers an art museum, a symphony orchestra, a speedway, and more. And with home prices in the $120s, equating to an estimated monthly payment of $968, residents will have plenty of money left over to enjoy all the city has to offer.
3. East Chicago - $128,237
This town is about 30 minutes southeast of Chicago, Illinois, on Lake Michigan, and takes its name from its proximity to the much larger metro area. The city started on railroads and steel. It is now experiencing a revitalization as a lakefront community within commuting distance of Chicago. You won’t find Chicago prices, though; the average home payment is estimated at $977.
4. Marion - $129,598
Speaking of birthplaces, Marion's claim to fame is that it's the original home of actor James Dean and Vice President under Woodrow Wilson, Thomas Marshall. With a population of around 28,000 today, the city offers employment opportunities in manufacturing, agriculture, and education as the home of Indiana’s largest private university, Indiana Wesleyan University. The estimated monthly payment in Marion? Just $987.
5. Peru - $145,308
Situated between Fort Wayne and Indianapolis, Peru offers more affordable living without sacrificing quality of life. While property prices are low, with the average home estimated to have a monthly payment of $1,107, employment opportunities can be found with local employers, including Dukes Memorial Hospital, Smithfield Packaged Meats, and Miami County.
6. Muncie - $145,370
Muncie hosts Ball State University, a large public university with around 20,000 students, but it’s more than a college town. Minnetrista, a cultural center, can be found here, as can the Cardinal Greenway, one of the longest rail-trails in the U.S. It's a vibrant community with diverse cultural offerings and historical significance. The estimated monthly payments on the average home in Muncie will cost you just $1,107.
7. Logansport - $150,769
Those who want to buy an ultra-affordable home with zero down should consider Logansport. The entire area is geographically eligible for the popular zero-down USDA Loan. And with home prices averaging around $150,000, the estimated conventional monthly payment of $1,149 is affordable for nearly any budget.
8. Richmond - $151,352
Business owners seeking to relocate should look into Richmond, Indiana. According to its website, the town, located less than 15 minutes from the Ohio border, is committed to the success of local businesses and attracting new employers to the area. The average home in Richmond comes with an estimated monthly price tag of just $1,153.
9. Terre Haute - $153,666
Located along the Wabash River, Terre Haute offers history, culture, and affordable living. Known as the “Crossroads of America,” the city is home to Indiana State University and boasts a population of nearly 60,000. Residents can enjoy parks, museums, art galleries, and an average estimated monthly housing cost of just $1,171.
10. Connersville - $155,594
Connersville dates back to 1813 and is now a town of about 13,000, according to the U.S. Census. History lovers will enjoy Elmhurst, an 1800s-era mansion, and a 19-mile scenic railroad connecting the city to nearby Metamora. Buy a home in Connersville with an estimated average cost of $1,185 per month.
Get Pre-Approved for Your Indiana Home
Many towns and cities across Indiana are affordable for just about any budget. From low-cost Gary to historic Connersville, there’s somewhere for everyone. See what home price you qualify for by requesting your pre-approval today.
Methodology
To find the 10 most affordable housing markets in Indiana, we started with average home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2025. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage at 6.395%, the recent 30-day average from rate marketplace I Can Buy based on a buyer with a 700 credit score putting 5% down. We added PMI costs per mortgage insurance provider MGIC and tax rates by state from TaxFoundation.org. Homeowner’s insurance estimates were calculated using Nerdwallet’s cost in each state for $300,000 in dwelling coverage. We multiplied this rate by 67.8%, the U.S. average of total market value represented by the structure according to ResiClub (since homeowners insurance is based on the structure, not total value). We then multiplied this rate by the average home’s total market value. We assumed no HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population nationwide per Zillow data.
Estimated payments are for example purposes only. Not a commitment to lend.
