Fort Wayne, located in Allen County, Indiana, may not be at the top of the most desirable places to live in the U.S., but it’s definitely the most affordable.
Fort Wayne, the hub of Northeast Indiana and the state’s second-largest city, ranked first on U.S. News and World Report’s Most Affordable Places to Live in the U.S. in 2024-2025 for its low cost of living. The median home and rent prices are well below the national average, and many households make a decent income to live comfortably in this city.
“Rent and housing prices in Fort Wayne are lower than most big cities in the U.S. for a few reasons,” says Seamus Nally, CEO at TurboTenant, a property management software company. The biggest reason is the city’s population, Nally explains.
“Though the city has experienced growth in the past few years, and rent and housing prices are definitely going up, Fort Wayne is far less populated than most big cities in the U.S.,” he says. “This means that the demand for housing doesn’t outweigh supply in nearly the same ratio as other cities, which helps keep prices more reasonable.”
— Why is Fort Wayne, Indiana, so affordable?
— How much do you need to make to live comfortably in Fort Wayne?
— Fort Wayne’s cost of living
— Is Fort Wayne a good place to live?
[READ: The Most Undervalued U.S. Housing Markets]
Why Is Fort Wayne, Indiana, So Affordable?
Fort Wayne’s median household income of $71,507 is slightly below the national median of $75,149, but the lower cost of living and the city’s employment opportunities help make up for it. Fort Wayne residents spend just 19.56% of the area median household income on housing expenses.
Not only is the unemployment rate comparable to the national rate, approximately 4.1% in June 2024, according to the Bureau of Labor Statistics, but there are also plenty of employment opportunities, particularly in health care, education, finance, government and the automotive industry.
Fort Wayne is only two to three hours from major cities like Chicago and Detroit, and as the cost of living increased during the pandemic, people began looking for affordable options, says Mary Sherer, broker/owner of ERA Crossroads in Fort Wayne. A greater number of younger people are also moving back home to the Fort Wayne area.
“Thanks to Covid and the advent of people working from home, many young people who had left the area to seek high-paying jobs on either coast and in the ‘big cities’ came home,” Sherer says.
Despite the appreciation growth over the last few years, Fort Wayne is still considered an affordable place to live. A number of aspiring homeowners have even moved away from high-cost-of-living areas to purchase a home in Fort Wayne, says Sherer.
“Many people that thought they might never own a home in other areas of the country have moved here and found out that not only could they buy a home, but they could also buy a very nice home,” she explains.
Fort Wayne has struggled with a low housing supply, but it’s improving. “While we have been hampered by low inventory, the local homebuilders have stepped up and added new homes to the market at record numbers,” Sherer adds.
Housing costs are what make Fort Wayne an affordable place to live, but the city also ranked No. 45 for price parity, or the comparative cost of goods and services, according to data from the annual Best Places to Live rankings. This puts it in the top third of the 150 major cities assessed.
How Much Do You Need To Make To Live Comfortably in Fort Wayne?
“To live comfortably — allowing for savings and unexpected expenses — financial experts often recommend that your income should be at least three times your total monthly expenses before taxes,” says Doug Roller, founder of Fort Wayne-based Crossroads Financial Group. He recommends an annual household income of at least $80,000 to live comfortably in the city.
According to Roller, many families can easily afford a home in Fort Wayne without being financially strained. “The general rule is that housing should not exceed 30% of gross income,” he says. “Residents generally enjoy a comfortable standard of living with sufficient disposable income for savings or leisure activities after meeting essential needs.”
[See: The Fastest-Growing Places in the U.S. in 2024-2025]
Fort Wayne’s Cost of Living
Low housing costs largely influence Fort Wayne’s affordable cost of living, but other factors also play a role. Here’s what you can expect to pay if you plan to relocate to this midsized city.
Housing
Prospective buyers can purchase a nice home in a safe community at a much lower cost than in other cities across the country. Fort Wayne’s median home price and monthly rent is $169,485 and $1,078, respectively. On a national level, the median home price is $362,481, while the median monthly rent is $2,069 as of July 2024, according to data from Zillow.
“The rental market in Fort Wayne benefits from a sufficient supply of housing relative to demand,” Roller explains. There are also a variety of rental properties available, including single-family homes, apartments and duplexes, which Roller says helps keep prices competitive. Additionally, building a home is also generally lower due to cheaper land prices and construction costs. “This affordability encourages developers to build more homes at reasonable prices, contributing further to the overall lower rental rates,” he adds.
Homeowners insurance could be more expensive in Indiana this year. Insurify estimated a 7% increase, rising from the average annual rate of $1,886 in 2022 to a potential $2,001. On average, rates should increase 6% nationwide, so Indiana is slightly above average. Some states like Alaska, Texas, Washington, West Virginia, Missouri and North Dakota have a 0% projected change, and rates in South Dakota are expected to drop by 3%.
However, other states have seen a much higher increase in home insurance rates, such as Louisiana’s 23% anticipated rate increase. According to Insurify, the states with the highest increase in home insurance costs are prone to severe weather events.
Taxes
As of 2024, Indiana has a flat income tax rate of 3.05% and a 7% sales tax. In a recent analysis of how tax-friendly each state is, calculating the tax burden of the average resident, Indiana earned a “B” score — not the best but also not the worst. The state came in 20th, with taxes representing nearly 7% of a median family’s income.
Fort Wayne residents have recently seen an increase in their property taxes, but that’s because of increases in the current market value of homes, according to the Allen County Assessor’s Office. For 2024, Fort Wayne increased its levy by 4.2%.
Transportation
Gas prices are slightly higher in Allen County than state and national averages. Recent data from AAA shows that the average price per gallon of regular gas in Allen County is around $3.35, compared with the U.S. average of $3.45 as of Aug. 14.
However, residents here will see cost savings when it comes to their auto insurance. According to recent data from the National Association of Insurance Commissioners, the average auto insurance premium — including liability, collision and comprehensive coverage combined — in Indiana is $905.61, versus the national average of $1,258.10.
Health Care
Fort Wayne has access to health care, such as its expansive Parkview Health Systems and Lutheran Health Network, but health care prices in the state are high.
A study conducted by research group Rand Corporation found that Indiana employers and employees pay nearly three times, or 297%, what Medicare pays for the same services at the same hospital. This is higher than the national average of 254% and higher than nearby states. The study also found that Indiana’s total commercial hospital prices are the eighth highest in the U.S.
The Indiana Hospital Association said its members had to subsidize physicians at a high level, making it “look artificially higher than other states,” and Indiana hospitals have been experiencing historic financial losses and growing costs.
Food
When it comes to food costs, Indiana residents generally see a lower grocery bill than in other states. A study by HelpAdvisor analyzed the U.S. Census Bureau Household Pulse Survey and found that Indiana was among the top five states with the lowest amount spent on groceries. According to the data, the average household in Indiana spends $239.11 per week on groceries, or about $12,433 annually. At the top of the list was California with an average weekly grocery bill of $297.72.
[READ: Why Is California So Expensive?]
Utilities
On average, Fort Wayne residents spend more than average on utility costs, including energy, water, natural gas, internet, streaming and phone services. According to data from the Bureau of Labor Statistics, the Energy Information Administration and Energy.gov, monthly utility bills in Indiana add up to $469.51, compared to the nationwide average of $429.33.
Fort Wayne does pay less for some utility services, such as electricity. Energy Sage reported that on average, Fort Wayne residents spend about $183 per month or $2,196 per year on electricity, which is 19% lower than the national average of $2,701.
[READ: Should You Disclose the Climate Risks to Your Home?]
Is Fort Wayne a Good Place To Live?
Fort Wayne’s stable employment opportunities, diverse economy and low housing costs make it an affordable and great place to live. Violent crime rates are lower than average, and residents also enjoy access to various activities.
“Fort Wayne offers numerous amenities including parks, cultural institutions like Science Central and the Fort Wayne Children’s Zoo, as well as recreational opportunities that enhance quality of life without significantly increasing living costs,” Roller says.
And if you’re looking for something a little more upscale, Fort Wayne has several communities considered more affluent than others. Roller says that some of the most expensive neighborhoods include Aboite Township, Cedarville, Northwest Fort Wayne and Southwest Fort Wayne. “The average home prices in these areas can range from $300,000 to over $600,000 depending on the specific location and property features,” he says.
In terms of affordability, he recommends Waynedale, Southside, East Central Fort Wayne, North Side and downtown Fort Wayne. “In these more affordable neighborhoods, home prices can range from $100,000 to $200,000 on average,” Roller says.
Another important aspect to look into before deciding where to live is the area’s climate risk. Fort Wayne ranked No. 46 out of 150 for its air quality, according to the monthly average air quality index from the U.S. Environmental Protection Agency. It also ranked 45th, placing in the top third of 150 cities assessed using FEMA’s National Risk Index for the annual Best Places to Live rankings. The index determines a city’s risk to natural hazards and community risk factors, including social vulnerability and community resilience.
More from U.S. News
Why Naples, Florida, Is the Best Place to Live in 2024-2025
Most Overvalued U.S. Housing Markets
15 Secrets to Selling Your Home Faster
Why is Fort Wayne, Indiana, the Cheapest Place to Live? originally appeared on usnews.com
