Income needed to buy a house in Indiana
A median-priced home in Indiana costs $243,500. With 20% down you'd need about $67,974 a year, within reach of the state's median household income of $71,959. Indiana ranks #8 of 51 for the lowest income needed.
Income needed: $67,974 a year
Defaults: state median home value and property tax (Census ACS 2024), median homeowners insurance paid by owners with a mortgage (Census ACS 2024; quotes vary by home and ZIP code), 30-year rate 7.24% (Freddie Mac, week of 2026-10-29).
Estimated household income: about $67,974 a year for a $243,500 home in Indiana with $48,700 down.
Uses a 28/36 planning rule: modeled housing costs at 28% of gross income, housing plus other debt payments at 36%. Mortgage approval depends on the lender, loan program, credit and other circumstances. Excludes maintenance, repairs and utilities.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $1,328 |
| Property tax | $150 |
| Homeowners insurance | $109 |
| Total | $1,586 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $12,175 | $1,931 | $82,773 |
| 10% | $24,350 | $1,843 | $78,999 |
| 20% | $48,700 | $1,586 | $67,974 |
Income benchmarks use the 28/36 planning rule with no HOA or other debt payments. Mortgage approval depends on the lender and loan program. Monthly costs exclude maintenance, repairs and utilities. Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in Indiana: what's different
- Transfer tax
- None
- On the median home
- $0
- Homestead break
- Deductions + 1% cap
- First-time buyer help
- Indiana Housing and Community Development Authority
- Transfer and recording taxes. Indiana has no transfer tax. A sales disclosure form goes to the county auditor, and a small filing fee applies to most sales.
- Property tax breaks for your home. Homesteads get a standard deduction plus a supplemental deduction, and the tax on a homestead is capped at 1% of its gross assessed value. A 2025 law (SEA 1) phases the standard deduction out over five years while raising the supplemental one, and adds a credit of 10% of the bill, up to $300, starting with 2026 bills.
- First-time buyer help. The Indiana Housing and Community Development Authority offers First Step through participating lenders. Check its site for income and price limits.
Checked against official sources on September 25, 2026. Local transfer taxes and exemptions vary, so confirm with the county before you close.
Home prices in the Indiana metro areas we cover
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Indianapolis, IN | $81,348 | $291,400 | $80,239 |
| Chicago, IL (8% in IN) | $107,402 | $339,700 | $90,770 |
| Fort Wayne, IN | $68,947 | $245,800 | $71,251 |
| Louisville, KY (20% in IN) | $74,740 | $265,900 | $74,305 |
With 20% down, the median home takes about $68,947 a year in the Fort Wayne area and $107,402 in the Chicago area, compared with $67,974 for the statewide median.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. Metro areas centered in Illinois or Kentucky are included because many of their residents live in Indiana; the share in the state is in parentheses. Rows are ordered by how many residents live in Indiana. Income needed: 20% down at 7.24%, the metro's median property tax and its main state's median homeowners insurance for homes with a mortgage (Census ACS 2024), under the 28% rule.
What makes owning in Indiana less expensive than most states
- Home prices: the median value of $243,500 is 32% below the U.S. median of $360,600.
- Property tax: about 0.74% of value a year ($150 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,304 a year for homeowners insurance in 2024 (Census ACS). Premiums have risen in most states since then, and they vary a lot by home and ZIP code, so get quotes.
- Mortgage rate: each 1-point rise in rates adds roughly $135 a month on this loan.
2 states need at least 20% less income to buy their median home. States with a similar income requirement:
Frequently asked questions
How much do you need to make to buy a house in Indiana?
About $67,974 a year for the median home of $243,500 with 20% down at 7.24%. With 10% down it's about $78,999.
What is the property tax rate in Indiana?
The median Indiana homeowner pays $1,798 a year, about 0.74% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in Indiana?
Median rent is $1,104 a month, while owning the median home costs about $1,586 a month with 20% down, before maintenance. Renting affordably takes about $44,160 a year under the 30% rule.