Home Affordability in Indianapolis, IN
The median home price in Indianapolis is $240,000 with a median household income of $50,272. Housing is moderately affordable relative to local incomes.
Median Home Price
$240,000
Median Income
$50,272
Price-to-Income Ratio
4.8x
Est. Affordable Home
$196,000
Property Tax Rate
0.85%
Annual Property Tax
$2,040
Sales Tax Rate
7.00%
Cost of Living Index
90
Buying a Home in Indianapolis
Based on the 28% rule (spending no more than 28% of gross income on housing), a household earning the median income of $50,272 in Indianapolis can afford a monthly housing payment of approximately $1,173. This translates to a home price of roughly $196,000, which is below the median home price of $240,000 — many households may need a higher income, larger down payment, or should consider more affordable neighborhoods.
Property taxes on a median-priced home in Indianapolis would be approximately $2,040 per year ($170/month) at the effective rate of 0.85%.
Down Payment Scenarios
| Down Payment | Amount | Loan Amount | PMI Required |
|---|---|---|---|
| 3% | $7,200 | $232,800 | Yes |
| 5% | $12,000 | $228,000 | Yes |
| 10% | $24,000 | $216,000 | Yes |
| 20% | $48,000 | $192,000 | No |
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