12 Small Towns in Indiana That You Need to Check Out

Sweeping prairies, beautiful beach fronts, and plenty of sports — you’ll be able to find it all in the Hoosier state

If you’ve considered moving to Indiana recently, you wouldn’t be the only one. In fact, the state ranked sixth in the country for inbound migration in 2022, up six spots from 12th in 2021. People are choosing to move to Indiana not only because of its bustling cities with strong job markets, affordable housing, and plenty of fun recreational activities to enjoy, but it also has a variety of small towns that are perfect for everyone. Whether you’re looking for a safe town to raise a family or want a quieter one to retire in, Indiana’s small towns are hard to beat.

Big Cities vs. Small Towns in Indiana

While moving to the larger cities of Indianapolis, Evansville, and Fort Wayne comes with a host of benefits, there’s definitely something to be said for small-town living. Here are a few of the best things you’ll gain:

• A deeper sense of community
• Less traffic and congestion
• Lots of space to enjoy the outdoors
• Lower cost of living
• Affordable housing
• A slower pace of life

Small Towns in Indiana - FAQ

Q: What is the smallest town in Indiana?
A: Indiana has a lot of small towns, but some of the smallest include Stinesville and Riley.

Q: What is the nicest town in Indiana?
A: Nashville, IN, is considered one of the nicest towns in the state.

Q: How many small towns are there in Indiana?
A: Classifying small towns is a fickle thing. With ever-changing standards and new rules being put in place, it can be hard to find an exact number. However, Indiana had 491 small towns (with less than 10,000 residents) in 2010. Since then, at least 36 cities have made the switch from “urban” to “rural” by U.S. Census standards.

Q: Are there any abandoned towns in Indiana?
A: A lot of towns were developed in the 19th century but dwindled throughout the 20th century. In total, there are over 60 ghost towns in Indiana.

Q: What is the most walkable town in Indiana?
A: Of the towns on this list, Whiting and Madison are the two most walkable towns with scores of 87 and 80, respectively.

12 of the Best Small Towns in Indiana

You know the benefits of small-town living, but what are the best small towns in Indiana? We’ve chosen our favorites to help you decide. Note: The U.S. Census designates a small town with populations up to 5,000, but we’ve included towns on our list with populations up to 15,000. 

1. Shipshewana, IN

• Average rent (one-bedroom): N/A
• Average home value: $369,600
• Great for: Families, young professionals, Amish culture, public schools

As one of the largest Amish towns in Indiana, Shipshewana is a great place to live if you’re looking to slow down. It’s home to the Midwest's largest flea market, the Shipshewana Flea Market, that operates from May through September. You’ll be able to explore the work of local artists, bakers, and skilled craftsmen and carpenters. There are also plenty of vendors selling clothes, furniture, and other knick-knacks.

You’ll get used to seeing the Amish horses and buggies on the road once you’re a local, and you’ll love the beautiful scenery that surrounds this quaint town!

2. Angola, IN

• Average rent (one-bedroom): $875
• Average home value: $286,500
• Great for: Young professionals, families, nightlife

If you’re looking for one of the most charming small towns in Indiana to put down roots, Angola should be at the top of your list. The town’s business district has plenty of small businesses. Once you’ve had a full day of shopping, you can head over to Timbers Steakhouse and Seafood for a bite. And if you like exploring, the town’s historic buildings are beautiful to look at. There’s even a famous Civil War monument at the center of the town!

Angola is close to several lakes, and enjoying the outdoors is a way of life for residents. Whether you want to swim, boat, or learn how to fish, Angola offers plenty of opportunities to get out into nature.

3. Dune Acres, IN

• Average rent (one-bedroom): $1,150
• Average home value: $899,700
• Great for: Families, retirees, public schools, outdoor activities

Are you dreaming of retiring by the shore? Then you’ll want to check out living in Dune Acres. This town is located in the northwest part of Indiana and is right on Lake Michigan. While on clear days you may be able to glimpse the Chicago skyline, this town is as far away from the hustle and bustle of the city as you could want. 

You can stroll down the beach and dip your toes in the lake or head out on a boat for fishing or water skiing fun. The Indiana Dunes National Park is also in the area, which means you’ll be able to explore this serene natural setting on foot or in a dune buggy! 

The Dune Acres Clubhouse, situated on one of the tallest dunes, is even listed on the National Register of Historic Places. Stop into one of the local eateries after a day out exploring, like Dunes Pavilion, or grab something sweet at Dari-Dip.

4. Meridian Hills, IN

• Average rent (one-bedroom): $1,200
• Average home value: $664,800
• Great for: Families, retirees, public schools, nightlife

Meridian Hills is a great place for families, but it’s best for retirees. In fact, it’s been ranked first by Niche for “Best Places to Retire in Indiana.” This is one of the towns near Indianapolis, meaning you’ll have small-town safety with access to big-city amenities. It’s especially great if you’re commuting into the city, as you’ll only have to drive about 30 minutes.

Full of well-kept streets, gorgeous homes, and friendly folks, Meridian Hills also boasts many small businesses to shop from. Locals also love stopping into Meridian Restaurant and Bar for bites and brews!