Median rent is 15% lower in Indianapolis ($1,156/mo vs $1,361/mo). Buying is cheaper in Indianapolis, where the median home runs $224,800 versus $277,800. Households earn more in Indianapolis ($66,219 vs $64,813 a year). Taken together, Indianapolis is the more affordable choice with a cost index of 94.7 against 99.7 — about 5% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Indianapolis, IN.
Cost of living verdict
Indianapolis is 5% cheaper overall
Cost of Living Index: 94.7 in Indianapolis vs 99.7 in Houston (US national average = 100)
City A
Houston, TX
City B
Indianapolis, IN
How much would you need to earn in Indianapolis, IN to maintain your standard of living from Houston, TX?
Equivalent salary in Indianapolis, IN
$71,177
You could earn $3,823 less (5% lower) and break even.
Based on BEA Regional Price Parity (cost index) for each metro area. This estimates overall purchasing power; it does not account for taxes or take-home pay differences.
Metric
Houston
Texas
Indianapolis
Indiana
Population
Median Household Income
Annual
Median Gross Rent
Per month
Median Home Value
Cost of Living Index
US avg = 100
1BR Fair Market Rent
HUD FMR
2BR Fair Market Rent
HUD FMR
3BR Fair Market Rent
HUD FMR
Air Quality Index
Lower = cleaner
Top State Income Tax
Top marginal rate
State Sales Tax
Statewide base rate
Median Age
Years
✓ = better value · Sources: Census ACS, BEA, HUD Fair Market Rents, EPA AirNow, Tax Foundation
Median rent is modestly lower in Indianapolis at $1,156/mo compared to $1,361/mo in Houston (15% gap). Median home values are within 19% of each other: $277,800 in Houston and $224,800 in Indianapolis.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
State tax data is not yet available for these cities.
Houston
Income tax: N/A
Sales tax: N/A
Indianapolis
Income tax: N/A
Sales tax: N/A
Indianapolis has cleaner air on average: 48.0 AQI (Good) compared to 59.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick Indianapolis if you prioritize lower overall cost of living (index 94.7 vs 99.7).
Pick Indianapolis if you prioritize cheaper rent ($1,156/mo median).
Pick Indianapolis if you prioritize cleaner air quality (avg AQI 48.0).
Is Houston cheaper than Indianapolis?
Indianapolis is cheaper overall, with a cost of living index of 94.7 versus 99.7 (US average = 100). That means prices run about 5% lower in Indianapolis.
How much is rent in Houston vs Indianapolis?
Median rent is $1,361/mo in Houston, TX and $1,156/mo in Indianapolis, IN. Indianapolis, IN has the lower rent by about 15%.
Which has higher salaries — Houston or Indianapolis?
Median household income is $64,813 in Houston, TX and $66,219 in Indianapolis, IN. Indianapolis, IN has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Which city has better air quality?
Indianapolis, IN has better air quality on average: 48.0 AQI versus 59.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Houston or Indianapolis?
State tax data is not yet available for one or both cities.
What salary do I need in Indianapolis to match my Houston income?
To maintain the same purchasing power, a salary of $100,000 in Houston, TX is equivalent to roughly $94,902 in Indianapolis, IN (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: December 1, 2026 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology
