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Marion County, IN

Rent vs Own in Marion County, Indiana

Owning the median home in Marion County clears the monthly bar: about $1,367/mo versus HUD's $1,473/mo 2-bedroom rent. The stack below shows which line items create that edge. Owner-occupied homes: 226,441.

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Buying is cheaper in Marion County

Owning runs about $1,367/mo here, under $1,473/mo to rent a comparable 2-bedroom. That is a $106/mo difference.

Based on 20% down, 6.5% rate, 30-year mortgage. Adjust below.

What This Data Tells Us About Renting vs Owning in Marion County

Primary driver

HUD moved the rent benchmark up

HUD raised its 2-bedroom Fair Market Rent for Marion County from $1,283/mo in FY2025 to $1,473/mo in FY2026: it increased by $190/mo (+14.8%). A rising rent benchmark widens the gap in favour of owning over time, because the mortgage share of the ownership cost below is fixed at origination while the rent it is compared against reprices every year.

Decision signal 2

The county sits near the state middle

Using the assumptions above, Marion County ranks 27 of 92 Indiana counties for buy-vs-rent value (rank 1 = the best relative deal for buying). It sits ahead of 65 other Indiana counties on this measure.

Decision signal 3

Price and income sit in the middle band

Median household income is $66,346, for a 3.4x home-price-to-income ratio in the middle of the national distribution; property tax takes 3.1% of that income. Small changes in down payment or rate move this county across the rent-vs-own line more than they would in a high-ratio market.

Decision signal 4

Owning clears the monthly bar here

Marion County's median home ($224,000) carries $2,028/yr in property tax at 0.91%. Under a 20% down, 6.5%, 30-year stack the all-in ownership bill is about $1,367/mo, which undercuts HUD's $1,473/mo 2-bedroom Fair Market Rent by roughly $106/mo before maintenance, HOA, or closing costs.

Methodology & disclaimer

This calculator is for informational purposes only and is not tax, legal, or financial advice. Property tax figures come from the U.S. Census Bureau ACS 5-Year Estimates and rent figures come from HUD Fair Market Rents; both describe area medians, not individual transactions. Insurance is estimated at 0.35% of home value annually and closing costs, maintenance, HOA, and PMI are not included. Consult a licensed mortgage, tax, or real-estate professional before making a buy-or-rent decision based on these numbers.

Monthly Cost Breakdown

Estimated Monthly Ownership
$1,367
Mortgage (P&I) $1,133
Property Tax $169
Insurance (est.) $65
Monthly Rent (2-BR FMR)
$1,473
Studio$1,118
1-Bedroom$1,267
2-Bedroom$1,473
3-Bedroom$1,907
4-Bedroom$2,338

Adjust Your Scenario

Affordability Context

Median Household Income
$66,346
$5,529/mo
Home Price / Income
3.4x
Moderate (3-5x)
Tax-to-Income Ratio
3.1%
National benchmark: 2-4%

Who actually pays it here

Even with the loan gone, the largest group of Marion County owners still owes $3,000 or more every year - a recurring holding cost of a few hundred dollars a month, which is why "paid off" understates the real cost of keeping property here.

Marion County matches the national pattern: six-figure earners between $100,000 and $200,000 account for more of these write-offs than any other local group.

Against that holding-cost profile, the monthly ownership stack already undercuts HUD rent here, so the long-run tax bill is an ownership feature more than a reason to keep renting.

Bill bands are Census ACS counts of owner-occupied homes without a mortgage. Income brackets are IRS Statistics of Income county data for tax year 2022, counted over FILERS reporting real-estate taxes on Schedule A, which is a smaller group than homeowners: most filers take the standard deduction.

Nearby Counties

Lake County
Home: $230,600 Tax: $2,112/yr
Allen County
Home: $214,900 Tax: $1,689/yr
Hamilton County
Home: $405,500 Tax: $3,549/yr
St. Joseph County
Home: $192,800 Tax: $1,665/yr
Porter County
Home: $281,500 Tax: $2,326/yr
Hendricks County
Home: $307,600 Tax: $2,482/yr

Frequently Asked Questions

What is the average rent in Marion County? ▼
HUD prices a 2-bedroom unit at $1,473/mo here. Sizing up matters: going from a studio to a 4-bedroom adds about $1,220/mo, so the per-bedroom jump is worth checking against your actual space needs before assuming the 2-BR figure applies to your situation.
Is it cheaper to rent or buy in Marion County, Indiana? ▼
On the standard 20%-down / 6.5% stack, owning the median Marion County home undercuts HUD's 2-bedroom rent by about $106/mo. Change the down payment, rate, or time horizon in the calculator and that gap can flip - owning also builds equity that rent never does.
Is rent going up or down in Marion County? ▼
HUD's 2-bedroom Fair Market Rent figure has risen 14.8% between the FY2025 and FY2026 publications, the two most recent years tracked here.
How much house can you afford in Marion County? ▼
On the common 3x-income guideline, a $66,346 household here can afford up to $199,038 -- about $24,962 short of this county's $224,000 median home. That gap is typically closed with a larger down payment, dual incomes, or a longer search outside the median price band.
How does Marion County compare to other Indiana counties for renting vs buying? ▼
Out of 92 Indiana counties ranked here on buy-vs-rent value, Marion County lands at spot 27, roughly in the middle of the pack statewide. The <a href="/states/indiana">Indiana state page</a> lists every peer county's tax bill beside this one.
What is the median home price in Marion County? ▼
$224,000, per the Census Bureau's ACS 5-Year Estimates. The property tax on that value works out to roughly 0.91% a year, in line with typical rates for the area.

Read our methodology - how this data is sourced, computed, and verified.

Data sourced from the U.S. Census Bureau (American Community Survey). See our methodology for details. Retrieved and formatted by PlainPropertyTax

Source: U.S. Census Bureau, Government Finances State and local property tax revenue by jurisdiction · 2025

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