In Indiana, the median home costs $273K and the median household income is $72K/year. Find out how much house you can afford based on your income, debts, and down payment. Formula shown, sources cited — no account required.
A median home price of $273,000 against a median household income of $71,959 produces a price-to-income ratio of about 3.8, sitting right at the traditional affordability threshold. A 10% down payment requires $27,300, and closing costs at 1.5% add another $4,095, bringing the total upfront cash need to roughly $31,400. That's a realistic target for many two-income households that have been saving consistently. Property taxes at 0.85% add about $193 per month to housing costs, which is modest compared to neighboring Illinois. The market offers buyers good value, especially outside the Indianapolis metro, where inventory is broader and competition is lighter. First-time buyers should examine the IHCDA Next Home and MY HOME programs, both of which can reduce the upfront cash barrier through grants or forgivable second mortgages. Indianapolis proper has grown more competitive, with desirable neighborhoods seeing multiple offers in the spring market. Use the home affordability calculator to run your income and debt figures against current rates and find a comfortable price range.
How Much House Can You Afford in Indiana?
Lenders typically use the 28/36 rule: your monthly housing payment should not exceed 28% of gross monthly income, and total debt payments should stay under 36%. With Indiana's median income of $71,959/year ($5,997/month), that means a maximum housing payment of roughly $1,679/month.
At 6.51% over 30 years with a 10% down payment ($27,300), that monthly budget supports a purchase price of approximately $259,350–$273,000. The median home price in Indiana is $273,000, which means housing is more affordable than the national average.