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10 Most Affordable Housing Markets in Indiana

Historic housing area in Gary Indiana

Indiana is one of the most affordable states in the U.S.

In fact, all 10 of its lowest-priced markets offer monthly mortgage payments under $1,000 per month, not including taxes or insurance.

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.

1. Gary
2. Marion
3. Anderson
4. East Chicago
5. Peru
6. Muncie
7. Logansport
8. Richmond
9. Connersville
10. New Castle

1. Gary

Home price

$72,237

Mortgage

$68,625

Estimated Payment*

$494

*Payments mentioned do not include taxes, insurance, or HOA dues. Example purposes only. Not a commitment to lend.

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.

2. Marion

Home price

$112,386

Mortgage

$106,766

Estimated Payment

$769

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.

3. Anderson

Home price

$115,173

Mortgage

$109,414

Estimated Payment

$788

A city of around 54,000, Anderson offers an art museum, a symphony orchestra, a speedway, and more. And with home prices in the low $100s, residents will have plenty of money left over each month with which to enjoy all the city has to offer.

4. East Chicago

Home price

$119,543

Mortgage

$113,566

Estimated Payment

$818

This town is about 30 minutes southeast of Chicago, Illinois on Lake Michigan, and gets its name for its proximity to the much larger metro. The town started on railroads and steel. It is now experiencing a revitalization as a lakefront community within commuting distance of Chicago.

5. Peru

Home price

$123,705

Mortgage

$117,520

Estimated Payment

$846

In between Fort Wayne and Indianapolis, Peru offers more affordable living without sacrificing quality of life. While property prices are low, employment opportunities can be found with local employers including Dukes Memorial Hospital, Smithfield Packaged Meats, and Miami County.

6. Muncie

Home price

$128,776

Mortgage

$122,337

Estimated Payment

$881

Muncie hosts a large public university of around 14,000 students, Ball State University, 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.

7. Logansport

Home price

$128,888

Mortgage

$122,443

Estimated Payment

$882

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 under $130,000, the monthly payment is affordable for nearly any budget.

8. Richmond

Home price

$131,388

Mortgage

$124,818

Estimated Payment

$899

Business owners looking to relocate should look into Richmond, Indiana. According to its website, the town is committed to the success of local business and attracting new employers to the area.

9. Connersville

Home price

$132,395

Mortgage

$125,776

Estimated Payment

$905

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 town to nearby Metamora.

10. New Castle

Home price

$138,185

Mortgage

$131,276

Estimated Payment

$945

Downtown New Castle has a website dedicated to its events, shopping and food. Like many small midwest towns, New Castle is in efforts to revitalize downtown, helped by a recent $2 million grant for this purpose from the state.

Get pre-approved for your Indiana home

Many towns and cities across Indiana are affordable for just about any budget. See what home price you qualify for by requesting your pre-approval from a reputable lender.

Methodology

To find the 10 most affordable housing markets in Indiana, we started with typical home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2023. 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 using a 6.845% rate, the average rate at the time of data collection as published on Optimal Blue Mortgage Market Indices for a buyer with less than 20% down and a 700 FICO score. We added PMI costs per rates from mortgage insurance provider MGIC. The stated mortgage payment does not include homeowner’s insurance, property taxes, or HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population in the U.S. per Zillow’s report.

About The Author:

Tim Lucas spent 11 years in the mortgage industry and now leverages that real-world knowledge to give consumers reliable, actionable advice. Tim has been featured in national publications such as Time, U.S. News, MSN, The Mortgage Reports, My Mortgage Insider, and more.

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