You're Officially 'Middle Class' If You Have A $25,000 Salary In This Midwest City

In 2023, the U.S. real median household income climbed to $80,610, a roughly 4% bump from the year before, according to the U.S. Census Bureau. However, the cost of essentials like food, fuel, and housing has also continued to rise. Per the Bureau of Labor Statistics, there was a 2.4% increase in consumer prices from May 2024 to May 2025, which has added to affordability pressures even as incomes increase.

Yet in Gary, Indiana, $25,000 a year would still qualify as middle class. The U.S. Census Bureau's 2023 American Community Survey pegged the city's median household income at $35,033. That's about 43% of the national median. Pew Research Center defines "middle class" as households earning between two-thirds and double the median household income. Applied to Gary's $35,033 median, this creates a middle-class range of $23,355 to $70,066. Gary is one of the few major metros where you can make it to the middle class on a modest salary, while most cities demand much higher earnings.

Gary's income levels show just how wide the economic divide has gotten. Per the 2023 American Community Survey, Gary's poverty rate reached 32.3%, which is almost three times Indiana's statewide figure of 12.3%. So in this setup, a $25,000 salary falls below the national poverty threshold of $30,000 for a family of four, but locally in Gary, that salary delivers middle-class purchasing power.

Gary's remarkably low middle-class threshold starts with housing. Home prices there sit far below national levels. According to Zillow, the typical home in Gary was valued at $86,084 as of July 31, 2025. That's down 2.8% from 2024 and only about 23% of the national median of $368,581. The gap slashes what locals need to earn to buy a house. Rent is cheap, too. RentCafe's July 2025 numbers put the average apartment in Gary at $945 a month. Nationally, the average was $1,754. That's more than $800 in savings every month. Lower housing costs let even modest paychecks hold middle-class ground, skipping the common pitfall of paying too much for rent to get ahead.

Daily expenses lean cheaper as well. According to AreaVibes, the city's cost of living index stood at 88 in 2025, meaning residents spent about 12% less than the U.S. average. Utilities ran 11% below. Groceries were 4% higher, but the trade-off still leaves more breathing room. 

Jobs, though, remain a challenge. According to STATS Indiana, Gary's unemployment rate was 5.1% in July 2025. Indiana as a whole came in lower, at 4.2%. The higher rate keeps wages tight, but it also presses overall costs down. For residents, that unusual mix creates a pocket of affordability and an opportunity to increase financial security rarely found elsewhere.