Is it cheaper to live in Frederick or Indianapolis?

Indianapolis, IN is cheaper. Its monthly baseline of $1,150 (1BR rent + utilities) runs about 30% below Frederick, MD's $1,640, mainly because of rent.

How much more do you need to earn to live in Frederick than in Indianapolis?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $57,000 a year in Frederick versus $39,000 in Indianapolis.

Which has lower taxes, Frederick or Indianapolis?

Frederick is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Indianapolis under Indiana's (a top state income tax rate of 2.95% and a 7% state sales tax).

Frederick vs Indianapolis Cost of Living 2026

Frederick

Maryland

$1,640/mo est.

Indianapolis

Indiana

$1,150/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,640 in Frederick, MD versus $1,150 in Indianapolis, IN. Overall, Indianapolis, IN is roughly 30% cheaper to live in day-to-day than Frederick, MD, driven mainly by rent.

Median household income is $95,150 in Frederick, MD and $62,995 in Indianapolis, IN — about 34% higher in Frederick, MD. Maryland has a top state income tax rate of 6.50% and a 6% state sales tax; Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.

Frederick, MD

Indianapolis, IN

Rent

Studio

$1,658

$933

+44% in Frederick, MD

1 Bedroom

$1,418

$963

+32% in Frederick, MD

2 Bedroom

$1,661

$1,132

+32% in Frederick, MD

3 Bedroom

$1,863

$1,304

+30% in Frederick, MD

Buying a Home

Median Home Value

$365,200

$207,000

+43% in Frederick, MD

Income

Median Household Income

$95,150

$62,995

+34% in Frederick, MD

Metro Median Wage (annual)

$71,060

$49,340

+31% in Frederick, MD

People & Lifestyle

Median Age

37.1 yr

34.1 yr

+3.0 yr in Frederick, MD

Homeownership

59.2%

55.3%

+3.9 pp in Frederick, MD

Bachelor's+ (25+)

41.8%

34.2%

+7.6 pp in Frederick, MD

Avg Commute

30.1 min

24.3 min

+5.8 min in Frederick, MD

Crime (per 100k/yr)

Violent Crime

406

936.6

+131% in Indianapolis, IN

Property Crime

1,696.3

3,351.7

+98% in Indianapolis, IN

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

52.1°F

53.2°F

+1.1°F in Indianapolis, IN

Annual Precipitation

—

42.4 in

Gas

Regular Gasoline

$3.86/gal

$3.94/gal

+2% in Indianapolis, IN

Area: East Coast (PADD 1) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

—

$1.75

Adult base one-way fare — — vs IndyGo (2026).

Utilities

Electricity (¢/kWh)

21.8

18.1

+17% in Frederick, MD

Natural Gas ($/MCF)

$18.94

$13.70

+28% in Frederick, MD

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.00

$4.31

+8% in Indianapolis, IN

Bread (lb)

$1.75

$1.66

+5% in Frederick, MD

Eggs (doz)

$2.21

$3.63

+64% in Indianapolis, IN

Ground Beef (lb)

$6.45

$6.77

+5% in Indianapolis, IN

Chicken (lb)

$1.90

$2.10

+10% in Indianapolis, IN

Bananas (lb)

$0.62

about equal

Average prices — South vs Midwest (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MD / IN)

+1.0 pp in IN

Income Tax (top rate)

6.50%

2.95%

+3.5 pp in MD

Frederick vs Indianapolis — FAQ

Is it cheaper to live in Frederick or Indianapolis?: Indianapolis, IN is cheaper. Its monthly baseline of $1,150 (1BR rent + utilities) runs about 30% below Frederick, MD's $1,640, mainly because of rent.
How much more do you need to earn to live in Frederick than in Indianapolis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $57,000 a year in Frederick versus $39,000 in Indianapolis.
Which has lower taxes, Frederick or Indianapolis?: Frederick is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Indianapolis under Indiana's (a top state income tax rate of 2.95% and a 7% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).