A+
9%
Overall NAT. AVG.
4%
Goods & Services NAT. AVG.
24%
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 Lebanon Indiana National
Cost of living9190100
Goods & Services9694100
Groceries10098100
Health care8996100
Housing7672100
Transportation9695100
Utilities104107100

An Overview of Cost of Living in Lebanon, IN

Getting a feel for the cost of living in Lebanon is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Lebanon is 91, which is 9% lower than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

In Lebanon, daily expenses such as food, housing, goods and services, transportation and health care are in line with comparable areas and about average when compared to all cities across the nation. This ensures that the cost of living in Lebanon will resemble that of an average city, contributing to a manageable cost of living.

Is Lebanon Affordable?

Is Lebanon affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Lebanon, the median home price is 26.5% lower than the national average and monthly rent prices are 17.6% lower than the typical rates. Additionally, the median income levels play a role in affordability, with Lebanon boasting a median household income of $54,160, 2.1% lower than the national average.

What Factors can Influence the Cost of Living in Lebanon?

Housing: Elevated demand for housing within coveted locales has the propensity to escalate both property values and rental rates, thereby serving as a primary catalyst for an augmented cost of living. Conversely, areas witnessing diminished housing demand, particularly within less desirable environs, often experience an inversely proportional effect, leading to price reductions and subsequently contributing to a more modest cost of living. In Lebanon, the housing index is 23.8% lower than the national average.

Transportation: When public transportation options are limited or non-existent, residents frequently resort to vehicle ownership, which can significantly contribute to the overall cost of living. Monthly financial obligations encompass fuel, insurance, regular maintenance and potentially lease or financing expenses. In Lebanon, the transportation index is 4.1% lower than the national average.

Groceries: Grocery prices have seen substantial hikes in the last 2-3 years, with some markets witnessing food cost increases of over 20% during this period. Conversely, certain markets have experienced only moderate upticks. These variations in food expenses can have a substantial impact on the overall cost of living in any locality. In Lebanon, the groceries index is 0.1% higher than the national average.

Where is the Data From?

The cost of living data in Lebanon displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in Lebanon is 2% higher than the Indiana average
  • The cost of living in Lebanon is 9% lower than the national average
  • Lebanon housing is 24% 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 Lebanon

See all the best places to live around Lebanon

Compare Lebanon, 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$63,940$5,328$1,492$1,918
      Renters$34,295$2,858$800$1,029
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Lebanon, IN, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Lebanon, homeowners have a median income of $63,940. Using that number, a maximum of $1,492 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $34,295, which means there is a maximum of $800 to be spent on the costs of renting a home or apartment.

      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 Lebanon National avg. Difference
      Haircut $19.53$24.2619.5%
      Beauty Salon $39.03$45.5614.3%
      Toothpaste $3.67$3.700.9%
      Shampoo $1.33$1.284.1%
      Movie $10.91$12.1310.1%
      Bowling $18.70$18.003.9%

      Groceries

      Item Lebanon National avg. Difference
      Ground Beef $5.91$5.841.3%
      Fried Chicken $1.61$1.572.4%
      Milk $4.73$4.671.3%
      Potatoes $5.07$4.932.7%
      Pizza $12.39$12.092.5%
      Beer $10.30$10.411.1%

      Health Care

      Item Lebanon National avg. Difference
      Optometrist $73.37$125.6841.6%
      Doctor $99.19$135.7826.9%
      Dentist $109.26$113.293.6%
      Ibuprofen $10.70$10.650.4%
      Lipitor $509.36$468.608.7%

      Housing

      Item Lebanon National avg. Difference
      Home Price $135,700.00$184,700.0026.5%
      Avg. Mortgage Payment $1,794.91$2,346.6923.5%
      Apartment Rent $782.00$949.0017.6%

      Transportation

      Item Lebanon National avg. Difference
      Gasoline $3.39$3.462.2%
      Tire Balancing $54.63$59.928.8%

      Utilities

      Item Lebanon National avg. Difference
      All Electricity $207.03$193.996.7%
      Phone $190.02$192.251.2%
      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.
      Clarks Hill, IN7748316.6%
      Kirklin, IN1,1258118.9%
      Colfax, IN8138812.2%
      New Ross, IN5168911.4%
      Advance, IN4238911.3%
      Lebanon, IN16,317919.0%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Beaver Dam, WI16,322946.3%
      Aldine, TX16,3088811.5%
      Chickasha, OK16,3268218.0%
      Coos Bay, OR16,3261033.2%
      Glassmanor, MD16,30511817.9%
      Lebanon, IN16,317919.0%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.