West Lafayette tops recent rankings as Indiana’s poorest city. Analyses using 2021-2025 U.S. Census data highlight its lowest median household income and highest poverty rate among larger cities.
Economic Snapshot
West Lafayette, home to 44,802 residents, reports a median household income of $33,497—the state’s lowest. A staggering 37.4% poverty rate impacts 16,742 people, driven by high living costs near Purdue University and limited high-wage jobs beyond academia.
Unemployment exacerbates struggles, though affordable housing ranks in Indiana’s bottom 15%.
Ranking Methodology
RoadSnacks evaluated 76 Indiana cities over 5,000 population using American Community Survey metrics. West Lafayette held #1 unchanged, scoring worst on income and poverty composites.
Gary follows closely at #2 with $37,380 median income and 32.9% poverty.
Contributing Factors
Student-heavy demographics skew poverty stats, as many undergraduates live below income thresholds. Manufacturing decline in nearby areas like Gary adds regional pressure.
Indiana’s statewide poverty sits at 12.4%, but Rust Belt legacies hit northwest towns hardest.
Top 5 Poorest Cities
| Rank | City | Population | Median Income | Poverty Rate |
|---|---|---|---|---|
| 1 | West Lafayette | 44,802 | $33,497 | 37.4% |
| 2 | Gary | 68,604 | $37,380 | 32.9% |
| 3 | East Chicago | N/A | N/A | N/A |
| 4 | Muncie | 64,739 | $43,395 | 29.6% |
| 5 | Terre Haute | N/A | N/A | N/A |
Smaller towns like Austin (pop. 3,921) claim poverty crowns in some studies under 25,000 population caps.
Outlook and Aid
State initiatives target workforce training amid 2026 economic shifts. Local food banks and Purdue outreach provide relief, though deeper recovery lags.
SOURCES :
- https://my1053wjlt.com/this-is-the-poorest-town-in-indiana/
- https://indianaeconomicdigest.net/Content/Default/Major-Indiana-News/Article/What-s-Indiana-s-poorest-city-Hint-It-s-not-Bloomington-/-3/5308/115473
