Indiana · 163rd largest metro area

Buying a home in South Bend, Indiana

In South Bend, the median value of owner-occupied homes is $140,400, St. Joseph County's effective property tax rate is 0.86%, and a purchase mortgage carried a median $3,685 in total loan costs in 2025.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

South Bend home costs, fact by fact

About South Bend

South Bend, home to 103,713 residents, is part of the South Bend-Mishawaka, IN-MI metro area, ranked 163rd in the nation. Median gross rent is $1,033 per month, and HUD's Fair Market Rent for a two-bedroom in St. Joseph County is $1,276.

Reading the South Bend figures

South Bend has the lowest home value among the Indiana cities named on this page. Owners value the median home at $140,400, just under Evansville's $143,100 and well below the state's $255,200. Fort Wayne reaches $188,900 and Indianapolis $224,800, while Fishers and Carmel climb to $391,000 and $486,800.

Rent here is not the lowest of the group, which is a useful detail for a buyer. Median rent is $1,033, higher than Evansville's $975 and Fort Wayne's $999, though lower than Indianapolis' $1,156. HUD sets the South Bend-Mishawaka zone at $1,276, above the city's median rent. A low purchase value combined with that rent level is what shapes the rent-versus-own question in this city.

In St. Joseph County, the effective tax rate is 0.86% and the median annual bill is $1,665, with a middle home worth $192,800 in the county. The bill therefore stays modest, and it moves with the value of the property rather than with a steep rate. Of the 2,419 loans in 2025, the median cost was $3,685, with typical quotes from $2,728 to $5,967, a spread wide enough to reward comparing lenders. Owners occupy 60.2% of homes, just below Fort Wayne's 61.9%, above Indianapolis at 56% and above Evansville at 54.6%. For a first look, South Bend pairs the lowest value on the page with a moderate tax bill. The city's population, 103,713, is close to Carmel's and Fishers', yet its home values are a fraction of theirs, which is the clearest sign of how much the covered Indiana cities differ.

Calculate for Indiana

If you buy

Indiana state transfer tax

Indiana has no real estate transfer tax. Change the price: the amount is recalculated instantly.

Price$255,200
State transfer tax$0
Share of the price—

Default price: the Indiana median value of owner-occupied homes, $255,200 (Census ACS 2025). Rule: No tax is calculated on the price; the fees are flat. Who pays: Nobody pays a transfer tax. The county pages do not say who pays the fees; the purchase contract decides. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Indiana transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Indiana state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in South Bend

How much is property tax in South Bend?

Homeowners in St. Joseph County pay a median $1,665 a year in property tax, 0.86% of the county median home value of $192,800 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in South Bend?

Home-purchase mortgages in St. Joseph County carried median total loan costs of $3,685 in 2025; half of the 2,419 loans fell between $2,728 and $5,967 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in South Bend?

Indiana has no real estate transfer tax in its tax code. A deed transfer costs flat fees instead; in Marion County that is $10 per parcel and $20 per sales disclosure form to the Assessor plus $35 per document to the Recorder.

Is it cheaper to rent or buy in South Bend?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in South Bend ($140,400) equals 11.3 years of the median gross rent ($1,033 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Indiana rules that apply in South Bend

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Sources

Indiana · All states · Federal guides