Indiana’s housing crisis isn’t just about rising rents—it’s about paychecks that haven’t kept up. For thousands of Hoosiers, full-time work no longer guarantees housing stability. According to the Out of Reach – Indiana 2025 report, a full-time worker in Indiana must earn $22.18/hour to afford a modest two-bedroom apartment at fair market rent. But the average Hoosier renter earns just $18.05/hour. That $4.13 wage gap adds up to over $8,500 in lost annual earning power—money that could be used for food, childcare, medical bills, or simply keeping the lights on.

This disconnect between income and housing costs has grown into a structural issue. The Fair Market Rent for a two-bedroom apartment in Indiana is now $1,153/month. Yet, based on the state’s average renter wage, the “affordable” rent should be no more than $939/month. That means the typical renter must either spend more than the recommended 30% of their income on housing—or make sacrifices elsewhere to bridge the difference. These trade-offs often include essentials like prescriptions, groceries, transportation, or utilities, leading to increased housing instability and greater vulnerability to eviction.

And it’s not just about averages. For renters at the lowest end of the income spectrum—those earning 30% or less of the Area Median Income—the situation is even more dire. For them, affordable rent is just $722/month, a full $431 short of what it costs to rent a modest two-bedroom. This affordability crisis affects seniors, caregivers, low-wage workers, people with disabilities, and others who are often left out of mainstream housing markets altogether.

Unlike other states in the Midwest that have raised wages or invested in renter support, Indiana lags behind. The Out of Reach report shows Indiana has the lowest renter income in the region—$3,708 less than the Midwest average—and yet renters here still face regionally average housing costs. In short, Hoosiers get no discount on rent, but plenty of financial risk.

It’s time to recognize that housing affordability cannot be addressed without addressing wages. Hoosiers deserve a fair shot at stability, and that starts with fair pay. The housing crisis won’t be solved by rental subsidies or new construction alone—it requires raising incomes so that hard-working people can afford a place to live.

"Out of Reach" is an annual report co-released by NLIHC and Prosperity Indiana. Read the full release at housing4hoosiers.org/2025/07/17/out-of-reach