16 Cheapest Cities to Live in Indiana [Update 2024]


Indiana, known for the Indy 500, is one of the cheapest states in the United States to live in. In fact, according to reports, it is the 10th-most-cheapest state in the United States to reside in, and the cost of living is around 10 percent lower than the national average.

Being a historic state, Indiana is home to famed manufacturing companies that have been around for centuries. These industries led to the birth of moderately populated, small industrial cities, where the cost of living is much lower than the metro areas. Furthermore, Indiana is also home to some of the cheapest cities in the United States as well.

So, the cheapest cities to live in Indiana are listed below.

1. Boonville

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Boonville is one of the best Cheapest Cities to Live in Indiana

Boonville is the cheapest city to live in Indiana, with an average annual rent of just $445 per bedroom. Offering a small-city atmosphere and a tight-knit community feel, Boonville is a city for those who are looking for an affordable, tranquil city to live in Indiana. The city has a population of just over 6,500, making it one of the least-populated cities on this list.

2. Rushville

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Rushville is a small rural city in Indiana that rejects external standards for its identity. It’s a city that emphasizes on what can be done, rather than what can’t be. It’s not simply a charming city with a small-town atmosphere; it’s a city seeing rapid socioeconomic development. However, with an average annual rent of $550 per bedroom, it is one of the cheapest cities in Indiana.

3. Terre Haute

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With an average annual rent per bedroom of $580, Terre Haute is one of the cheapest cities to live in Indiana and in the United States. The city has a relatively sizable population of just over 60,000 and is elevated at 152 meters. It is one of many cities on this list that is situated along the Wabash River, and is referred to as the “Queen City of the Wabash”.

These are the most populated cities in Indiana.

4. Fort Wayne

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Residents in Fort Wayne like simple outdoor activities, riding bikes, going to the Foellinger-Freimann Botanical Conservatory, strolling or passing through the city’s many parks and other recreational sports.

Moreover, its residents also appreciate how conveniently located the I-69 is, along with shops and medical centers. The average annual rent per one bedroom in this city is $693, the lowest in Indiana.

5. Evansville

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Evansville is a massive city in Indiana, with a small-city ambiance. It is also referred to by its residents as “Eville”, and boasts a quaint downtown featuring cafés and stores.

Additionally, there are lots of natural leisure activities available, such as the state parks and scenic trails. The average annual rent in Evansville is $702, which has decreased around 30% from what it used to be a year ago.

6. Muncie

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Muncie, a city in central Indiana and the location of Ball State University, was the place where Bob Ross filmed “The Joy of Painting” in a studio during the 1980s. Apart from being a cultural museum, the Minnetrista sits on the White River and frequently acts as a public social hub. The average annual rent in this city is $705.

These are the biggest cities in Indiana.

7. Goshen

Goshen has an annual average rent of $720, making it one of the cheapest cities to live in Indiana. The city has a population of just around 35,000 and is part of the Elkhart-Goshen Metropolitan Area. Moreover, Goshen is one of Indiana’s most significant automobile and accessories manufacturing cities.

8. Greenwood

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This budget-friendly community is made even more endearing by its adorable and inviting bars and cafés, wineries, shops ranging from local boutiques to large retailers located at the Greenwood Park Mall, which also consists of a farmers’ market. The average annual rent per bedroom in Greenwood is $770, almost the same as last year.

9. South Bend

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Although South Bend is best-known as the location of the renowned University of Notre Dame, not all its residents are students. The company AM General, which creates, develops, produces and provides automobiles to both scientific and defense clients worldwide, has its head offices in this city as well. The average annual rent in South Bend is $777.

10. West Lafayette

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West Lafayette, the site of the famed Purdue University, is only a short distance away from the city of Lafayette. As reported in 2020, there are around 45,000 students enrolled at this University that is well-known for its research projects. 

The residents of this city can take also advantage of its eateries and the yearly art exhibitions in Wabash Art Fair. The average annual rent is $797 in this city.

11. Kokomo

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Kokomo’s numerous parks, gently undulating hills and countless rivers are bliss for nature enthusiasts. Additionally, the art gallery is available every day of the year, and art enthusiasts appreciate Kokomo Artist Alley in the city’s center.

Chrysler still has a business in Kokomo, and as a key manufacturer in this industrial city situated in Indiana, the corporation intends to transform a transmission factory into a new engine manufacturing company. The average annual rent is $813 here.

12. Mishawaka

Mishawaka, located close to South Bend and sitting on the St. Joseph River, features numerous state parks and new infrastructure to meet the demands of its expanding population. Mishawaka is home to some highly-ranked universities and colleges, and the average annual rate per bedroom in Mishawaka is $935.

13. Lafayette

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Lafayette is an affordable city in Indiana that lies on the banks of the Wabash River. The city is home to top-class healthcare facilities and the Haan Museum of Indiana Art, which features pieces of art from both famous and up-and-coming artists.

The Gothic Revival, Italianate, Greek Revival and Second Empire are some of the architectural styles that can be seen in the 88 substantial buildings and 6 supporting structures that make up the Ninth Street Hill Neighborhood Historic District, which is a designated historical landmark. The average annual rent in Lafayette is $971.

14. Elkhart

The city of Elkhart in Elkhart-Goshen Metropolitan Area is alive, diversified and special. It is a city where things are constructed, opportunities abound and residents may enjoy top-notch leisure, artistic and cultural opportunities. The average annual rent per bedroom in Elkhart is $971.

15. Columbus

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Columbus is a small city that is jam-packed with entertainment and cultural pursuits. The city, which is roughly 46 miles away from Indiana, has top-class architectural buildings, art galleries, live music and other relaxing downtown amenities. The average annual rent in Columbus is just under a thousand dollars, at $982.

16. Carmel (103,871)

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According to the latest census, Carmel has a population of 103,871. This city is home to several parks, natural sights, luxurious hotels, good universities and schools and other facilities. Since the last census, the city’s population has increased by 4.12% and is predicted to increase more as the city is quite developed and not densely populated.

Indiana is one of the cheapest states to live in the United States, with a lower cost of living than the national average. While rent is one of the most important costs associated with living, the cities mentioned above perfectly reflect the affordable nature of living in Indiana.

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