In the Indianapolis, Carmel, and Greenwood metro area, the median gross rent is $1,191 a month, according to the U.S. Census Bureau’s 2020 to 2024 American Community Survey (Homzora Indianapolis dataset, Table B25064). Under the common 30 percent guideline, a household paying that rent would need a gross income of about $47,640 a year, or about $3,970 a month.
About 279,600 of the area’s 842,800 occupied homes, or 33.2 percent, are rented (Homzora Indianapolis dataset, Table B25003). This guide shows the income needed for different apartment sizes, how actual renter households compare, and how many renters already pay more than the guideline.
Quick answers
- Median gross rent: $1,191 a month (Homzora Indianapolis dataset, Table B25064).
- Income needed at 30 percent: about $47,640 a year, or $22.90 an hour for one full time earner.
- Median renter household income: $49,775 a year (Homzora Indianapolis dataset, Table B25119).
- Renters paying 30 percent or more: 48.3 percent of renter households with a computed ratio (Homzora Indianapolis dataset, Table B25070).
The 30 percent guideline
The U.S. Department of Housing and Urban Development defines cost burden as monthly housing costs, including utilities, exceeding 30 percent of monthly income, and severe cost burden as costs exceeding 50 percent (HUD Office of Policy Development and Research, CHAS Background). This guide uses that 30 percent threshold as its planning benchmark.
The math is simple. Multiply the monthly rent by 12 to get annual rent, then divide by 0.30. That is the same as multiplying the monthly rent by 40. A rent of $1,500 a month, for example, implies an income of $60,000 a year.
Gross rent, the measure used throughout this guide, is contract rent plus the estimated average monthly cost of utilities and fuels when the renter pays them (U.S. Census Bureau, QuickFacts definition of gross rent). That makes it a closer match to the housing cost the 30 percent guideline describes than advertised rent alone.
Income needed at the median rent in Indianapolis
| Rent level | Monthly rent | Annual rent | Income needed (30%) | Hourly, one earner | Each of two equal earners |
|---|---|---|---|---|---|
| Median gross rent | $1,191 | $14,292 | $47,640 | $22.90 | $23,820 |
The hourly figure assumes one person working 40 hours a week for 52 weeks, or 2,080 hours a year. The last column splits the required income evenly between two earners. Median rent comes from Table B25064 (Homzora Indianapolis dataset, Table B25064).
Income needed by apartment size
| Apartment size | Median gross rent | Income needed (30%) | Hourly, one earner |
|---|---|---|---|
| Studio (no bedroom) | $947 | $37,880 | $18.21 |
| 1 bedroom | $1,038 | $41,520 | $19.96 |
| 2 bedrooms | $1,192 | $47,680 | $22.92 |
| 3 bedrooms | $1,427 | $57,080 | $27.44 |
| 4 bedrooms | $1,772 | $70,880 | $34.08 |
| 5 or more bedrooms | $1,833 | $73,320 | $35.25 |
These medians come from Census Table B25031, median gross rent by number of bedrooms (Homzora Indianapolis dataset, Table B25031). Medians for larger units are based on fewer homes and can move more from survey to survey. Where a size is missing, the Census Bureau did not publish an exact median for it.
How the typical renter household compares
The median renter household in the Indianapolis, Carmel, and Greenwood metro area earns $49,775 a year (Homzora Indianapolis dataset, Table B25119). The median gross rent of $1,191 equals about 29 percent of that income. Thirty percent of the median renter income is about $1,244 a month. That leaves the typical renter household $53 a month of room under the 30 percent guideline.
Medians describe the middle of each distribution separately, so the median renter household does not necessarily live in a median priced unit. The comparison is still a useful check on how stretched the typical renter is.
How many renters pay more than 30 percent
| Gross rent as a share of household income | Renter households |
|---|---|
| Less than 20 percent | 70,441 |
| 20 to 29.9 percent | 67,582 |
| 30 to 39.9 percent | 43,040 |
| 40 to 49.9 percent | 21,996 |
| 50 percent or more | 63,903 |
| Not computed | 12,638 |
| Total renter households | 279,600 |
Of the 266,962 renter households for which the Census Bureau computed a ratio, 128,939, or 48.3 percent, spend 30 percent or more of income on gross rent, and 63,903, or 23.9 percent, spend 50 percent or more (Homzora Indianapolis dataset, Table B25070). The not computed group includes households that pay no cash rent and households with no income or a net loss. The Census bands begin at exactly 30.0 and 50.0 percent, so they align closely, though not perfectly, with HUD’s thresholds of more than 30 and more than 50 percent (HUD Office of Policy Development and Research, CHAS Background).
What rent fits different incomes
| Household income | 30 percent rent budget | Largest size within budget |
|---|---|---|
| $40,000 | $1,000 | Studio (no bedroom) at the median |
| $60,000 | $1,500 | 3 bedrooms at the median |
| $80,000 | $2,000 | 5 or more bedrooms at the median |
| $100,000 | $2,500 | 5 or more bedrooms at the median |
| $120,000 | $3,000 | 5 or more bedrooms at the median |
The rent budget is 30 percent of gross income divided by 12. It is a guideline, not a rule: households with high debt payments or child care costs may need to spend less, while some households with few other obligations choose to spend more.
Income needed for common rents
| Monthly rent | Annual rent | Income needed (30%) | Hourly, one earner |
|---|---|---|---|
| $1,000 | $12,000 | $40,000 | $19.23 |
| $1,250 | $15,000 | $50,000 | $24.04 |
| $1,500 | $18,000 | $60,000 | $28.85 |
| $1,750 | $21,000 | $70,000 | $33.65 |
| $2,000 | $24,000 | $80,000 | $38.46 |
| $2,250 | $27,000 | $90,000 | $43.27 |
| $2,500 | $30,000 | $100,000 | $48.08 |
| $3,000 | $36,000 | $120,000 | $57.69 |
Use this table to check a specific listing. Find the rent closest to the one you are considering and read across to see the income the 30 percent guideline implies. Remember to add any utilities the landlord does not include, since the guideline is meant to cover total housing cost.
A roommate example
Two roommates who split the median gross rent of $1,191 evenly would each pay $596 a month. Under the 30 percent guideline, each would need about $23,820 a year, compared with $47,640 for one person paying the whole rent alone. Splitting rent does not change the total cost of the home, but it spreads the income requirement across two earners, which is why shared housing is common in higher cost areas.
Ways to make the numbers work
- Share a larger unit. Two earners splitting a two bedroom apartment often pay less per person than one earner in a one bedroom.
- Compare total monthly cost. Add utilities, parking, and fees to the advertised rent before you compare listings.
- Ask about lease length. Some landlords price longer or shorter terms differently.
- Look beyond the core. Neighborhoods farther from downtown or transit often cost less, though commuting costs can offset some savings.
- Check assistance programs. Call 211 to ask about rental assistance in your area (211.org).
Plan for upfront costs
Income requirements are only part of the cost of renting. Most landlords also collect a security deposit and sometimes the first month’s rent before you move in. Our guide to deposit rules explains the limits that apply where you rent (Homzora, Indianapolis security deposit law). Setting aside at least two months of rent before you apply is a practical starting point.
Ask landlords about income requirements
Many landlords set their own minimum income, often expressed as a multiple of the monthly rent, and some accept a cosigner or guarantor when an applicant falls short. Requirements vary, so ask each landlord in writing what income, credit, and documentation it requires before you pay an application fee.
About the data
All local figures are 2020 to 2024 American Community Survey 5 year estimates published in the Homzora Indianapolis data library. Dollar figures are in 2024 inflation adjusted dollars. These figures describe the metro area, not only the central city. Five year estimates are averages over the period, so they can lag current asking rents, which are often higher for newly listed units.
Questions to ask before you apply
- What minimum income does the landlord require, and is it based on gross or net pay?
- Does the landlord count income from all adult applicants together?
- Is a cosigner or guarantor accepted, and on what terms?
- Which utilities are included in the rent, and what do the others typically cost?
- Are there monthly fees, such as parking, trash, or amenity fees, on top of rent?
Getting these answers in writing before you pay an application fee helps you avoid applying for homes you will not qualify for.
Frequently asked questions
What salary do I need to rent in Indianapolis?
About $47,640 a year to afford the median gross rent of $1,191 at 30 percent of income (Homzora Indianapolis dataset, Table B25064).
Is the 30 percent rule a requirement?
No. It is a benchmark. HUD treats housing costs above 30 percent of income as a cost burden (HUD Office of Policy Development and Research, CHAS Background), but each landlord sets its own screening standards.
How many renters in Indianapolis are cost burdened?
48.3 percent of renter households with a computed ratio pay 30 percent or more of income on gross rent (Homzora Indianapolis dataset, Table B25070).
What income do I need for a one bedroom?
About $41,520 a year at the median one bedroom gross rent of $1,038 (Homzora Indianapolis dataset, Table B25031).
Sources
- Homzora Indianapolis dataset, Table B25064
- Homzora Indianapolis dataset, Table B25003
- Homzora Indianapolis dataset, Table B25119
- Homzora Indianapolis dataset, Table B25070
- HUD Office of Policy Development and Research, CHAS Background
- U.S. Census Bureau, QuickFacts definition of gross rent
- Homzora Indianapolis dataset, Table B25031
- 211.org
- Homzora, Indianapolis security deposit law
- Homzora Indianapolis data library