Income Needed to Buy a Home in Indiana (2026)
Verdict: stretch — requires $73,609/year (#49 least affordable of 51 US states)
Indiana ranks #49 of 51 US states for housing unaffordability in 2026. Buying the median home at $254,122 requires a household income of about $73,609. That's $1,650 more than the median household actually earns ($71,959) — a shortfall of 2% of typical income.
Indiana's affordability ratio of 1.02 (required income ÷ actual median income) is 19.9% better than the median across all 51 US states (1.28). Home prices here sit 26.7% below the cross-state median of $346,668.
An effective property tax rate of 0.77% adds $163 per month, while homeowners insurance runs about $1,666/year. All-in, the monthly PITI (principal, interest, taxes, insurance) comes to $1,718.
Indiana monthly cost breakdown (2026)
| Median home price | $254,122 |
| Loan amount (10% down) | $228,710 |
| Monthly principal & interest | $1,416 |
| Monthly property tax (0.77% rate) | $163 |
| Monthly homeowners insurance | $139 |
| Total monthly PITI | $1,718 |
| Required household income | $73,609 |
| Median household income | $71,959 |
Run your own numbers
These figures model the median buyer. Your rate, down payment, and debts change the answer — check your personal maximum with the Home Affordability Analyzer or build a full payment schedule in the Advanced Mortgage Calculator. Closing costs typically add 2–5% on top — estimate them with the Closing Costs Estimator.
How Indiana compares
- Ohio — similar affordability (ratio 1.02, requires $74,011)
- Mississippi — similar affordability (ratio 1.05, requires $62,027)
- Alabama — similar affordability (ratio 1.06, requires $70,614)
- West Virginia — among the most affordable US states (requires $48,369)
- Iowa — among the most affordable US states (requires $74,199)
See every state and province ranked in the 2026 Mortgage Affordability Index.
Frequently asked questions
How much income do you need to buy a house in Indiana in 2026?
About $73,609 per year to afford the median-priced home of $254,122, assuming a 10% down payment and standard 28% housing-cost-to-income guideline. The median Indiana household earns $71,959.
What is the monthly cost of owning a median home in Indiana?
Roughly $1,718 per month, including principal and interest, property tax, and homeowners insurance.
Is Indiana affordable at the median income?
No. The required income exceeds the median household income by $1,650 (2%), ranking Indiana #49 least affordable of 51 US states.
Methodology & sources
Assumes 10% down, 30-year fixed at prevailing 2026 rates, 28% housing-cost-to-income guideline. Home prices from Zillow ZHVI (March 2026); incomes from Census ACS 1-Year 2024; property taxes from Tax Foundation; insurance from Bankrate state averages. Figures model the median scenario and are not financial advice. Full sources on the affordability index.