A+
20%
Overall NAT. AVG.
12%
Goods & Services NAT. AVG.
52%
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 Peru Indiana National
Cost of living8090100
Goods & Services8894100
Groceries9998100
Health care9496100
Housing4872100
Transportation9195100
Utilities107107100

An Overview of Cost of Living in Peru, IN

Knowing the cost of living in Peru allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Peru stands at 80, marking it 20% lower than the national average.

The cost of living in Peru is highly regarded for its affordability, with everyday expenses well below the national average. Peru is among the select few cities with a cost of living index at least 20% lower than the national average, showcasing its outstanding affordability compared to other areas.

Housing expenses can absorb a substantial portion of your net income, sometimes exceeding 30%. Thankfully, Peru stands out by reporting housing costs that are 52.1% lower than the national average. This signifies that both homeownership and rental expenses in this region are considerably more budget-friendly compared to the rest of the country. With such favorable housing affordability, residents of Peru can allocate a more reasonable portion of their income to housing, allowing for greater financial flexibility.

Everyday staples like clothes, toiletries and entertainment expenses play a big role in your total living costs. But in Peru, these goods are 12% cheaper than the national average. So, you can enjoy what you need and love without emptying your wallet. Plus, you'll have more cash to put towards your savings or any other money goals you have, which is a real boost for your financial well-being.

Is Peru Affordable?

Is Peru affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Peru, for instance, where the median home price falls 65.5% lower than the national average, and monthly rent rates are 20.7% lower than usual. Additionally, median income levels contribute to the equation, with Peru flaunting a median household income of $40,065, 27.6% lower than the national norm.

What Factors can Influence the Cost of Living in Peru?

Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Peru, the groceries index is 0.6% lower than the national average.

Urbanization: Larger, urban hubs brimming with ample amenities and robust employment opportunities often showcase a heightened cost of living. This surge is primarily attributed to the amplified demand for services and increased residential migration, culminating in elevated home prices and elevated rental rates. Conversely, less densely populated rural locales or regions characterized by reduced demand tend to offer a more limited array of amenities and undergo slower job market growth, ultimately yielding a more affordable cost of living.

Transportation: In cities with limited or no public transportation, residents may find it necessary to own and maintain vehicles, thereby elevating the cost of living. Monthly expenditures include fuel, insurance, routine maintenance and potential lease or financing commitments. In Peru, the transportation index stands at 8.6% lower than the national average.

Where is the Data From?

The Peru 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 Peru is 11% lower than the Indiana average
  • The cost of living in Peru is 20% lower than the national average
  • Peru housing is 52% 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 Peru

See all the best places to live around Peru

Compare Peru, 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$48,550$4,046$1,133$1,457
      Renters$21,976$1,831$513$659
      A good indicator of the general affordability of housing in Peru, 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 Peru, the median monthly income is $48,550 for those who own their own homes. Under the standard rule, that income level would allow for $1,133 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $21,976, per the median income in the area. That would allow for renters to spend up to $513 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 Peru 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 Peru 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 Peru 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 Peru National avg. Difference
      Home Price $63,700.00$184,700.0065.5%
      Avg. Mortgage Payment $1,547.29$2,346.6934.1%
      Apartment Rent $753.00$949.0020.7%

      Transportation

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

      Utilities

      Item Peru 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.
      Mier, IN42946.4%
      Macy, IN1847624.5%
      Bunker Hill, IN6377822.0%
      Mexico, IN1,2837920.8%
      Onward, IN1717920.8%
      Peru, IN11,3698020.1%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Fenton, MI11,368981.5%
      Campbellsville, KY11,370909.8%
      Moncks Corner, SC11,3701011.5%
      Cleveland, MS11,3638812.5%
      Bellmawr, NJ11,3751011.2%
      Peru, IN11,3698020.1%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.