Estimate your monthly payment using Indiana's average home price of $240,000 and property tax rate of 0.85%. Updated for 2026.
Estimates include P&I, property tax, and ~0.5% annual insurance. Does not include PMI, HOA, or utilities.
Indiana's housing market in 2026 has a median home price of approximately $240,000, placing it well below the national median of around $420,000. Indianapolis has emerged as a strong Midwest housing market with affordability drawing buyers from pricier coastal cities. Whether you're buying your first home in Indianapolis or relocating from another state, understanding your true monthly mortgage cost is essential before making an offer.
Property taxes in Indiana average 0.85% of assessed value annually — a below-average property tax rate. On a $240,000 home, that translates to roughly $170 per month added to your mortgage payment. Indianapolis, Fort Wayne, and Bloomington all fall under Indiana's general property tax framework, though local millage rates vary by county and municipality. Always confirm the exact rate for the specific property you're considering.
IHCDA Next Home program offers down payment assistance and competitive rates for Indiana first-time and repeat buyers. Beyond state programs, FHA loans remain popular in Indiana requiring as little as 3.5% down, while VA loans offer zero-down financing for eligible veterans and active-duty service members. Conventional loans typically require 620+ credit score and a debt-to-income ratio under 45%.
Indiana's mortgage deduction allows homeowners to deduct mortgage interest from their Indiana adjusted gross income. When shopping for a mortgage in Indiana, compare offers from at least three lenders. Even a 0.25% difference in interest rate on a $240,000 home can mean thousands of dollars saved over the life of a 30-year loan. Pay close attention to APR — not just the rate — as it includes origination fees and points.
Use the calculator above to model your scenario. A 20% down payment on the average Indiana home of $240,000 puts your estimated total monthly cost at approximately $1,522 at today's rates, before HOA fees or special assessments. Adjust the home price, down payment, and rate to match your specific situation and see how the numbers change in real time.
The average home price in Indiana is approximately $240,000 as of 2026. Prices vary significantly by city and county — Indianapolis tends to be pricier while more rural areas offer lower prices.
Indiana has a below-average property tax rate at 0.85% of assessed value. On a $240,000 home that adds about $170 per month to your housing cost. Rates vary by county, so verify the exact rate for your target property.
IHCDA Next Home program offers down payment assistance and competitive rates for Indiana first-time and repeat buyers. Additionally, FHA loans (3.5% down), VA loans (0% down for eligible veterans), and USDA rural loans may be available depending on location and eligibility.