Renting a home in Indianapolis is becoming more expensive. The city is still cheaper than many large cities in the United States, but rent has gone up quickly in recent years. For many families, wages have not increased fast enough to keep up with housing costs.
Average Rent in Indianapolis
The average rent in Indianapolis is about $1,463 per month. This includes different types of rental homes. Houses and townhomes average about $1,650 per month, while apartments and condos average about $1,188. Indianapolis is still below the national average, but renters are paying much more than they did several years ago.
Rent Has Increased Quickly
Rent prices in the Indianapolis area have increased significantly. Between December 2019 and December 2025, rents increased by almost 48%.
During the same period, rent across the United States increased by about 36%. This means Indianapolis rents increased faster than the national average and faster than some more expensive cities, including Chicago, Boston, and Seattle.
Other Indiana Cities Are Seeing Higher Rent Too
Indianapolis is not the only Indiana city dealing with rising rent. The South Bend area saw average rents increase by about 64% since 2019, reaching around $1,350 per month. Kokomo experienced an increase of about 61%.
Lafayette, Fort Wayne, Muncie, and Evansville also experienced rent increases of more than 50% during the same period.
Incomes Are Not Keeping Up With Housing Costs
Household incomes have also increased, but many renters are still having trouble keeping up with housing costs.
The median household income in Marion County reached about $66,653 in 2023. That was about 31% higher than in 2019. However, the national median household income was about $80,610 that year.
The problem is that rent has increased faster than income. This can leave families with less money for food, transportation, utilities, savings, and other everyday expenses.
Many Renters Struggle to Find Affordable Housing
A two-bedroom rental in the Indianapolis-Carmel area has a fair market rent of about $1,283 per month. A renter would need to earn nearly $25 per hour for that amount to be considered affordable. However, the average renter in the area earns less than $22 per hour.
The situation is even harder for people with very low incomes. In the Indianapolis-Carmel-Greenwood area, there are only about 26 affordable and available rental homes for every 100 extremely low-income households.
About three out of four of these households spend more than half of their income on rent. That leaves very little money for other basic needs.
Although Indianapolis remains less expensive than many major U.S. cities, rising rents are making it harder for local residents to find housing they can comfortably afford. For renters, comparing prices, understanding monthly expenses, and planning a realistic housing budget are becoming increasingly important.
