Indianapolis has made many names for itself over the past century and a half since it became the capital of Indiana (moved northbound from the original capital, Madison). The city has proudly carried the titles of Circle City, Crossroads of America, the amateur sports capital of the world, Indy and many more.
Indianapolis features a thriving medical and pharmaceutical community, including technicians at Eli Lilly and Roche and the next generation of doctors and nurses at downtown Indiana University Health Sciences Network.
Transportation is a thriving industry here. Interstates 65 and 70 meet within Indy’s city limits (hence the nickname Crossroads of America).
If you’re in search of baked-in Midwestern values and plenty of things to do, see and eat — you’ll want to explore the many possibilities of living in Indianapolis.
The city offers a plethora of housing options, ranging from historic to modern and everything in between – it will be easy to find the right (and cost-friendly) apartment rental in Indy for you.
What is the average rent in Indianapolis?
Indianapolis offers countless job opportunities and plenty of affordable housing within a reasonable distance of those jobs. Rent prices vary between neighborhoods — with an average rent of $1,192 for a one-bedroom apartment (as of April 2021).
Rent increased by nearly nine percent from last year in Indianapolis. While this represents local prosperity, Indy’s average rental cost falls well below the national average. Across the country, on average, you’d pay more than $400 extra in rent.
How much do I need to make to live in Indianapolis?
To live comfortably in Indianapolis, you need to ensure that your income covers all your expenditures. Experts recommend not spending more than 30 percent of your pre-tax income on housing.
Working with Indianapolis’ average one-bedroom rental of $1,192, you’d need to make $47,680 per year (based on the above equation) to live within your income. This average rental works out perfectly for most Indianapolis residents since the median income of Indy’s citizens is around $62,500.
Regardless of salary, you can easily find housing that fits every budget in Indianapolis. With our rent calculator, we can help you figure out what falls within an affordable range.
The cost of living in Indianapolis
Your cost of living incorporates more than just your monthly rent. It includes countless other living expenses, some items that you use or consume daily. To determine if Indianapolis fits your budget, look at the average cost of everyday goods and services.
In Indianapolis, the cost of living is almost nine percent lower than the national average. This means you’ll get much more out of your income in Indianapolis.
- Housing: The cost of housing in Indianapolis is an astounding 20.8 percent lower than the national average
- Healthcare: The cost of healthcare in Indianapolis is 12.9 percent below the national average
- Transportation: The cost of transportation in Indianapolis is 8.5 percent lower than the national average
- Groceries: The cost of groceries in Indianapolis is 6.7 percent below the national average
- Miscellaneous goods and services: The cost of miscellaneous goods and services in Indianapolis 2.8 percent less than the national average
- Utilities: The cost of utilities in Indianapolis is 1.9 percent higher than the national average
Indianapolis ranks well below the national average on the overall average cost of living, making it a no-brainer to move here.
This information is vital as you search for affordable apartments in Indianapolis. Taking these factors into account will ensure that you find your dream apartment at the perfect price.
The most and least expensive neighborhoods in Indianapolis
Original city planners in the 1800s did well as they plotted what would become the metropolitan city of Indianapolis. The entire city is a big circle focused around the Circle City monument, Lady Victory. You’ll find pocket-like neighborhoods sprinkled liberally off every major avenue-spoke of the city.
Many of the most expensive areas of town are found downtown and along the main northbound spoke-corridor and past north Interstate 465. The least expensive neighborhoods spread out in much the same way, covering some of the inner-city and eastern and western communities.
With all that said, it’s possible to find apartments that cater to every budget in most areas of the city.
The most expensive Indianapolis neighborhoods
If you’re looking to live near countless restaurants and plenty of things to do — count on downtown Indianapolis to cater to your needs.
You’ll find some of the city’s most expensive neighborhoods lining the inner-city streets of Indy, including the Wholesale District, historic Lockerbie Square (once home to poet James Whitcomb Riley) and the chill atmosphere of the Upper Canal. In these neighborhoods, you’ll find plenty of mature trees and unique architecture.
If you’re looking to find a slightly more upscale and residential place to live, look no further than the highly trendy Meridian-Kessler, South Broad Ripple and Holy Rosary neighborhoods. Here, you’ll be surrounded by large manor homes and kitschy hipster corner hangouts.
Need a bit of breathing room from the hub of the city but still want to live in luxury? Check out the North Meridian and North Central neighborhoods.
If you’re in the market for luxe living and you need to travel in style, look no further than the Ameriplex neighborhood — just south of the contemporary Indianapolis International Airport. While it ranks as the fourth most expensive place to rent in Indianapolis, it saw a substantial decrease in rent by more than 43 percent since 2020.
| Rank | Neighborhood | 1BR Average Rent | YoY Rent Price Changes |
|---|---|---|---|
| 1 | Wholesale District | $1,678 | -12.43% |
| 2 | Lockerbie Square | $1,661 | 11.66% |
| 3 | Upper Canal | $1,464 | 4.39% |
| 4 | Ameriplex* | $1,432 | -43.65% |
| 5 | Meridian Kessler | $1,427 | 2.96% |
| 5 | South Broad Ripple | $1,427 | 2.96% |
| 7 | Fletcher Place | $1,373 | 10.38% |
| 8 | Holy Rosary | $1,373 | 10.38% |
| 9 | Canal and White River State Park District | $1,369 | -2.65% |
| 9 | Clearwater* | $1,369 | 4.65% |
*May not be a true market representation due to insufficient inventory
The cheapest Indianapolis neighborhoods
Many of the least expensive communities within Indianapolis city limits have one common thread: They are beautiful and family-friendly.
If you choose to live in Delaware Trail (near northside), Arlington Woods or Irvington (far eastside), you’re choosing to live in historic gems with shockingly low rental rates. These culturally significant neighborhoods add emphasis to the local community, education and nature. Parks, green spaces and non-commercial zones feature prominently within these areas.
They’re also all devastatingly affordable. The average rent for a one-bedroom across all ten of Indianapolis’ least-expensive neighborhoods comes in $679 per month. Don’t discount these hidden gems even though the rent is cheap. Delaware Trail, mentioned earlier, increased its average rental value by more than four percent since this time last year.
| Rank | Neighborhood | 1BR Average Rent | YoY Rent Price Changes |
|---|---|---|---|
| 1 | Arlington Woods* | $646 | 1.76% |
| 2 | East Side | $647 | -14.93% |
| 2 | Gateway West | $647 | -2.48% |
| 4 | Southdale | $654 | 4.52% |
| 5 | Delaware Trail | $675 | 4.10% |
| 5 | Irvington | $675 | 0.00% |
| 7 | East Gate | $706 | 2.18% |
| 8 | Edgewood | $713 | 0.28% |
| 8 | Venerable Flackville | $713 | -0.17% |
| 8 | West Edgewood | $713 | 7.38% |
*May not be a true market representation due to insufficient inventory
Average rent prices in Indianapolis neighborhoods
Indianapolis clearly offers a wide distribution of living arrangements across almost every neighborhood. Your choices range from $1,678 for a one-bedroom apartment in the Wholesale District to $646 for a one-bedroom in Arlington Woods. Whichever provisions you choose, you can consider Indianapolis an ideal home.
Here is a list of how every neighborhood stacks up in the Indianapolis area.
*May not be a true market representation due to insufficient inventory
Find your Indianapolis neighborhood
Indianapolis has is a city of growth and industry. While the cost of living in the Circle City is low compared with the rest of the metropolitan U.S., you’ll still find the city has much to discover.
The down-home culture and temperate climate of the region mesh perfectly, making living in Indianapolis a uniquely cosmopolitan experience. You’ll fall in love with the city by the time you can say “Hoosier.”
