The Real Numbers in Indiana
The median home price in Indiana is $245,000. With a 20% down payment and a 6.8% mortgage rate, your monthly PITI payment comes to $1,602/month — including principal, interest, property taxes (0.85% avg.), and insurance.
To qualify under standard bank underwriting (28% front-end DTI), you need a gross annual income of at least $69,000. Indiana's median household income is approximately $60,000/year, giving the state a price-to-income ratio of 4.1×.
At 4.1×, Indiana is one of the more affordable states in the country — most buyers earning the median income can qualify for the median home.
Median Home Price (Indiana)$245,000
20% Down Payment$49,000
3.5% FHA Down Payment$8,575
Monthly P&I Payment$1,278/mo
Property Tax (est. 0.85%/yr)$174/mo
Home Insurance (est.)$150/mo
Total PITI Payment$1,602/mo
Salary Needed (28% DTI)$69K+/year
Price-to-Income Ratio4.1× median income
FRC Market DemandWARM
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Frequently Asked Questions
What salary do I need to buy a house in Indiana in 2026?
To afford the median Indiana home ($245,000) with a 20% down payment and 28% front-end DTI ratio, you need at least $69,000/year in gross income. If you have existing debt (car payments, student loans), you may need more.
What is the average home price in Indiana?
The median home price in Indiana is approximately $245,000 as of 2026, based on NAR and Zillow Research data. Prices vary significantly by city and region within the state.
Is Indiana a good state to buy a home in 2026?
Indiana currently shows WARM buyer demand based on FRC listing analysis. With WARM demand, the market is balanced. Well-priced homes move but buyers still have room to negotiate. The price-to-income ratio of 4.1× suggests strong affordability relative to the national average.
What is the down payment for a house in Indiana?
For the median Indiana home: 20% conventional down payment = $49,000. FHA minimum 3.5% = $8,575. FHA requires a minimum 580 credit score. Conventional loans typically require 620+.
📋 Data Sources: Median home prices from NAR & Zillow Research. Property tax rates from Tax Foundation. Income data from US Census Bureau ACS. Mortgage rates from Freddie Mac PMMS. All data updated 2026. Educational use only — not financial advice. Learn more →