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Buying a home in Indianapolis, Indiana

Indianapolis median home value: $241,500 (Census ACS 2024). Prices up 2.1% in a year (FHFA). IHCDA aid: 5% of the price for first-time buyers.

Checked on against the official sources listed at the bottom of the page.

In short

The median value of owner-occupied homes in Indianapolis is $241,500 (Census ACS 2024; owner estimates, not sale prices). The FHFA House Price Index shows Indiana prices up 3.5% and Indianapolis–Carmel–Greenwood prices up 2.1% between the second quarters of 2025 and 2026. Indiana has no real estate transfer tax. Selling a main home you owned and lived in for 2 of the last 5 years, the first $250,000 of gain ($500,000 for a married couple filing jointly) is excluded from federal income tax (IRS Publication 523).

Calculate for Indianapolis

If you buy

Indiana state transfer tax

Indiana has no real estate transfer tax. Change the price: the amount is recalculated instantly.

Price$241,500
State transfer tax$0
Share of the price—

Default price: the Indianapolis median value of owner-occupied homes, $241,500 (Census ACS 2024). Rule: No tax is calculated on the price; the fees are flat. Who pays: Nobody pays a transfer tax. The county pages do not say who pays the fees; the purchase contract decides. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Indiana transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Indiana state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

In short

The median value of owner-occupied homes in the city of Indianapolis is $241,500, according to the Census Bureau’s 2024 American Community Survey. The FHFA index shows prices in the Indianapolis–Carmel–Greenwood metro area up 2.1% between the second quarters of 2025 and 2026. Indiana’s housing agency (IHCDA) offers first-time buyers 5% of the price as down payment assistance, per its program page.

How much homes cost in Indianapolis

The Census Bureau’s American Community Survey (ACS) asks owners how much they think their home would sell for. The median of those answers is a useful benchmark, but it is not a sale price: it covers every owner-occupied home, including homes bought long ago. Our page on Indiana home prices explains the method in detail.

AreaMedian value, 2024 (ACS)Margin of error (90%)
City of Indianapolis (balance)$241,500±$4,256
Marion County$240,300±$3,838
Indianapolis–Carmel–Greenwood metro area$291,400±$3,894
Indiana$243,500±$1,916
United States$360,600±$618

Source: U.S. Census Bureau, ACS 1-Year Estimates 2024, table B25077. The 2025 estimates are scheduled for October 29, 2026.

Are Indianapolis prices rising?

The Federal Housing Finance Agency (FHFA) tracks repeat sales of the same single-family homes. Its purchase-only, seasonally adjusted index for the Indianapolis–Carmel–Greenwood metro area, published August 25, 2026, shows:

Area1-year change (Q2 2025 to Q2 2026)5-year change (Q2 2021 to Q2 2026)
Indianapolis–Carmel–Greenwood metro area+2.1%+35.2%
Indiana+3.5%+39.4%
United States+2.1%+33.4%

Source: FHFA House Price Index, quarterly purchase-only files. Changes calculated by Payotte from the published index values.

Prices in the Indianapolis area rose in line with the nation over the past year, and slightly faster over five years.

Closing costs at the median price

On top of the price, buyers and sellers pay closing costs: lender fees, the appraisal, title and escrow charges, and recording fees. Several depend on the loan and on the providers you choose, so there is no single official figure. We do not estimate a total on this page. For the rules, who usually pays each item and a worked example, see our guide to closing costs in Indiana. For the transfer-tax rules that apply in Marion County, see transfer tax in Indiana.

Property tax in Indianapolis

Indianapolis is in Marion County. We do not repeat rates on this page, so that they stay identical across our Indiana guides: see property tax in Indiana for how homes are assessed, the deductions available to owner-occupants and how to appeal. To see how property tax can be paid through your monthly mortgage payment, read our guide to escrow accounts.

Help for buyers in Indianapolis

  • IHCDA programs apply in Marion County. For First Step, Step Down and FHA Next Home, IHCDA’s May 2026 table lists Marion County at $110,300 (1-2 people) and $126,845 (3 or more), with a price limit of $566,355; in targeted census tracts, $132,360 and $154,420, with a price limit of $692,211. First Step gives 5% of the price; on a $241,500 purchase that is $12,075, repayable when you sell or refinance. Details are in our first-time buyer programs guide.
  • The city’s role. The City of Indianapolis housing page does not list a buyer down payment program. It refers prospective buyers to a local nonprofit homeownership partner, named on the page, and it runs a Homeowner Repair Program for existing owners; applications are closed and expected to reopen in 2027, with emergency repairs still considered.

Indiana guides for Indianapolis buyers

Frequently asked questions

What is the median home price in Indianapolis?

The Census Bureau’s 2024 American Community Survey puts the median value of owner-occupied homes in the city of Indianapolis at $241,500 (±$4,256). This is what owners think their home is worth, not the median sale price of recent sales.

Are home prices in Indianapolis going up?

According to the FHFA purchase-only index, prices in the Indianapolis–Carmel–Greenwood metro area rose 2.1% between the second quarter of 2025 and the second quarter of 2026. Over five years, they rose 35.2%.

Is Indianapolis cheaper than the rest of the metro area?

Yes. The city median ($241,500) is $49,900 below the metro median ($291,400), according to the 2024 ACS. Suburban counties raise the metro figure.

Can I get down payment help in Indianapolis?

Yes, through IHCDA, which serves all Indiana counties: 5% of the price with First Step and 2.5% or 3.5% with Next Home, subject to income and price limits. The city’s own housing page refers buyers to a nonprofit partner.

Does the city have a program for home repairs?

Yes, for income-qualified owner-occupants. The Homeowner Repair Program’s applications are closed and expected to reopen in 2027, but emergency repairs are still considered.

More Indiana guides

Sources

Professionals by sector of Indianapolis

Who licenses each trade in Indiana

Indiana · All states · Federal guides