A+
17%
Overall NAT. AVG.
12%
Goods & Services NAT. AVG.
41%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Kokomo Indiana National
Cost of living8390100
Goods & Services8894100
Groceries9998100
Health care9496100
Housing5972100
Transportation9195100
Utilities107107100

An Overview of Cost of Living in Kokomo, IN

Understanding the cost of living in Kokomo can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Kokomo cost of living index is 83, which is 17% lower than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

Housing costs often consume a significant share of your take-home income, often surpassing 30%. Fortunately, Kokomo distinguishes itself by reporting housing expenses that are 41.2% below the national average. This indicates that both owning a home and renting in this area are notably more budget-friendly compared to the rest of the nation. With such favorable housing affordability, residents of Kokomo can allocate more of their income to housing, enhancing their financial flexibility.

Everyday items like clothes, personal care products and fun activities all add up to what it costs to live. The thing is, in Kokomo, these goods and services are 12% cheaper than what people pay on average across the country. That means you can enjoy what you need and like without going broke. With these savings, you can stash more cash in your savings or use it for other money goals, which can really boost your financial health.

What Do Locals Say About the Cost of Living in Kokomo?

Locals have the inside scoop on their city. So, we polled 8 residents in Kokomo to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 63% find it reasonable with decreasing prices, but 38% think it's quite pricey, with prices that continue to rise.

Is Kokomo Affordable?

Is Kokomo an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Kokomo, the median home price is 49.5% lower than what most folks pay across the country, and monthly rent prices are 21.9% lower than the usual rates. Income levels in Kokomo come in at $48,830, which is 11.7% lower than the national average.

What Factors can Influence the Cost of Living in Kokomo?

Groceries: Grocery expenditures have undergone notable escalation over the last 2-3 years. In some markets, the cost of food products has surged by more than 20%, while others have experienced only modest increments. These fluctuations in food costs can have a significant impact on the overall cost of living in any region. In Kokomo, the groceries index registers 0.6% lower than the national average.

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Transportation: In areas where public transportation is scarce or unavailable, residents often find themselves compelled to own and upkeep vehicles, thereby increasing the overall cost of living. Monthly expenses encompass fuel, insurance, routine maintenance and potentially lease or financing payments. In Kokomo, the transportation index is 8.6% lower than the national average.

Where is the Data From?

The Kokomo cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Kokomo is 7% lower than the Indiana average
  • The cost of living in Kokomo is 17% lower than the national average
  • Kokomo housing is 41% lower than the national average
  • Indiana general sales tax is 37% higher than the national average
  • Indiana state income tax is 21% higher than the national average

Most Affordable Places to Live in and Around Kokomo

See all the best places to live around Kokomo

Compare Kokomo, IN Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$58,370$4,864$1,362$1,751
      Renters$31,996$2,666$747$960
      A good indicator of the general affordability of housing in Kokomo, IN, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Kokomo, the median monthly income is $58,370 for those who own their own homes. Under the standard rule, that income level would allow for $1,362 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $31,996, per the median income in the area. That would allow for renters to spend up to $747 on monthly rental expenses.

      Indiana Sales Tax

      State General Sales Tax With Max Surtax
      Indiana 7% 7%

      Indiana Income Tax

      State Income Tax (Low) Income Tax (High)
      Indiana 3.15% 3.15%

      Goods & Services

      Item Kokomo National avg. Difference
      Haircut $22.11$24.268.9%
      Beauty Salon $28.08$45.5638.4%
      Toothpaste $3.62$3.702.2%
      Shampoo $1.27$1.281.1%
      Movie $9.50$12.1321.7%
      Bowling $15.50$18.0013.9%

      Groceries

      Item Kokomo National avg. Difference
      Ground Beef $5.96$5.842.0%
      Fried Chicken $1.61$1.572.1%
      Milk $4.69$4.670.4%
      Potatoes $5.00$4.931.4%
      Pizza $13.99$12.0915.7%
      Beer $9.95$10.414.4%

      Health Care

      Item Kokomo National avg. Difference
      Optometrist $138.00$125.689.8%
      Doctor $128.67$135.785.2%
      Dentist $96.11$113.2915.2%
      Ibuprofen $10.38$10.652.6%
      Lipitor $486.44$468.603.8%

      Housing

      Item Kokomo National avg. Difference
      Home Price $93,300.00$184,700.0049.5%
      Avg. Mortgage Payment $1,547.29$2,346.6934.1%
      Apartment Rent $741.00$949.0021.9%

      Transportation

      Item Kokomo National avg. Difference
      Gasoline $3.49$3.460.7%
      Tire Balancing $41.11$59.9231.4%

      Utilities

      Item Kokomo National avg. Difference
      All Electricity $216.22$193.9911.5%
      Phone $189.67$192.251.3%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Sims, IN93946.4%
      Bunker Hill, IN6377822.0%
      Windfall City, IN7167920.8%
      Walton, IN9088020.1%
      Converse, IN1,1398020.0%
      Kokomo, IN58,0668316.8%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Dubuque, IA58,052927.5%
      Bowie, MD58,15813636.4%
      White Plains, NY58,17115959.0%
      Hendersonville, TN57,88811010.3%
      Casper, WY58,287990.9%
      Kokomo, IN58,0668316.8%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.