CALCMONEY // HOME AFFORDABILITY // IN // INDIANAPOLIS
How much house can you afford in Indianapolis? Based on local median home prices, current IN mortgage rates, and Indianapolis property tax data.
$265,000
$1,752/mo
$75,096/yr
$189,671
Monthly housing costs of $1,752 represent 36.3% of Indianapolis's median gross monthly income ($4,833/mo). At 36.3%, median-income buyers in Indianapolis are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $265,000 |
| Down Payment (20%) | $53,000 |
| Loan Amount | $212,000 |
| Monthly PI Payment | $1,403 |
| Monthly Property Tax | $239 |
| Monthly Insurance Est. | $110 |
| Total Monthly PITI | $1,752 |
| Housing Cost % of Income | 36.3% |
| Required Income (28% rule) | $75,096/yr |
| Max Affordable Home | $189,671 |
$9,275
$2,223/mo
Indianapolis Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $265,000 | Indianapolis city median |
| Down Payment (20%) | $53,000 | Conventional loan |
| Monthly PITI | $1,752 | 6.95% rate, 30yr fixed |
| Required Income (28% rule) | $75,096 | Annual gross |
| Max Affordable Home | $189,671 | Based on median income |
| FHA Down (3.5%) | $9,275 | Minimum FHA |
| Housing Cost % of Income | 36.3% | Median income: $58,000/yr |
| Property Tax Rate | 1.08% | $2,862/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Indianapolis is $265,000, with a local 30-year mortgage rate of 6.95%. A buyer putting 20% down carries a loan of $212,000, generating a monthly P&I payment of $1,403. Adding property taxes ($239/mo) and homeowners insurance ($110/mo) brings total monthly PITI to $1,752.
Indianapolis's property tax rate of 1.08% is near the national average, adding a standard increment to monthly housing costs. On the Indianapolis median home, that is $239/month, or $2,862 per year.
Indiana levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Indianapolis should factor state tax liability into their overall housing budget — mortgage interest may be deductible on both federal and state returns.
Using the 28% rule, a household earning Indianapolis's median income of $58,000/year can afford up to $1,353/month in total housing costs. Based on Indianapolis's mortgage rate of 6.95% and property tax rate of 1.08%, that translates to a maximum affordable home price of approximately $189,671 with 20% down on a 30-year loan.
To afford the median Indianapolis home priced at $265,000, you need an annual gross income of approximately $75,096. Total monthly housing costs (principal and interest of $1,403, property taxes of $239, and insurance of $110) come to $1,752/month, which equals 28% of the required income.
At the median home price of $265,000 and median household income of $58,000, the total monthly housing cost of $1,752 represents 36.3% of gross monthly income. This is well above the standard 28% threshold, making Indianapolis a challenging market for buyers at median income.
A conventional 20% down payment on the median Indianapolis home of $265,000 is $53,000. An FHA loan requires just 3.5% down — $9,275 — but adds mortgage insurance of roughly $181/month, bringing total FHA payments to $2,223/month.
Fort Wayne
$215,000 median
INSouth Bend
$185,000 median
INCarmel
$391,000 median
INFishers
$349,000 median