Furnace Replacement Cost in Kokomo, Indiana
Our 2026 estimate for furnace replacement in Kokomo, IN is $3,100 to $7,600. That puts Kokomo 3% below the national average, mainly because of lower local labor costs and the bigger heating equipment this climate calls for.
Kokomo Weather and HVAC Load
NOAA's 1991-2020 climate normals put Kokomo at 6,059 heating degree days and 833 cooling degree days per year. Heating is the bigger job here, and furnaces and heat pumps in Kokomo put in far more hours than the air conditioner. On average, Kokomo gets 131 freezing nights and 12 days above 90°F per year. Snowfall averages about 34 inches. For a 2,000 sq ft house, this climate points to a heating load somewhere near 65,000 BTU/h. Treat that as a starting number. A Manual J calculation will move it up or down based on insulation and windows.
| Heating degree days / year | 6,059 |
|---|---|
| Cooling degree days / year | 833 |
| Nights at or below 32°F | 131 |
| Days above 90°F | 12 |
| Average low / high | 40.4°F / 60.7°F |
Kokomo Housing Stock
Half the homes in Kokomo were built before 1966 (Census ACS median), so the typical house is about 60 years old. A lot of these homes are on their second or third system by now. The ductwork is usually original, and leaky joints are common. Kokomo has roughly 17,000 owner-occupied homes, or 65% of households. Homes here have a median value of $126,500 and households a median income of $54,195. Those two numbers drive the labor adjustment in our estimate.
Howard County had 4 hail days and 21 days with damaging thunderstorm winds from 2020 through 2025, according to NOAA storm records. The largest hail reported was 2.85 inches across. Storms here are more likely to cause power surges than coil damage, so a surge protector on the outdoor unit is worth the small cost. In Kokomo, 19.1% of residents are 65 or older. For older adults, a house with no heat in January or no AC during a heat wave is a medical risk. Mention it when you call, since many companies put those calls first.
When Replacement Makes Sense
- A tech found a cracked heat exchanger, or the CO detector has gone off
- Gas or electric bills keep climbing even though usage hasn't changed
- The furnace is 15 to 20 years old or more
- Some rooms stay cold, the burner short-cycles, or the ignitor keeps failing
What Moves the Price
- Permit and inspection fees, which the local building department sets
- Single-stage, two-stage or modulating gas valve
- New PVC venting if you move to a condensing model
- AFUE rating: a basic 80% unit vs. a 96% condensing furnace
- Condition of the existing ductwork and any changes it needs
- BTU size, which should come from a Manual J load calculation
We lowered the national figures about 3% for Kokomo using local income, home values and the equipment size this climate needs. Real bids can still come in outside the range, so collect three written quotes.
What the Quote Should Cover
- The permit and the manufacturer warranty registration
- Removing and hauling away the old furnace
- The new furnace, filter rack and thermostat wiring
- Combustion and safety tests
- Gas line and vent connections
Indiana Permits, Efficiency Rules and Rebates
Indiana falls in the DOE's North region. New split central air conditioners must meet at least 13.4 SEER2, and heat pumps sold anywhere in the U.S. need 14.3 SEER2 and 7.5 HSPF2. Equipment replacements in Kokomo generally need a mechanical permit, and a reputable contractor will pull it for you. Ask for their Indiana license or registration number and a certificate of insurance with the quote. The federal 25C tax credit ended for equipment installed after December 31, 2025, so incentives now come mostly from utilities and state programs. Check your electric and gas utility's rebate page before you pick equipment.
Before You Hire
- Ask for the Manual J load calculation in writing. Oversized furnaces are the most common mistake we see.
- Look up utility rebates on 95%+ AFUE units before you buy.
- Make sure all three quotes are for the same AFUE and staging, or you can't compare them.
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Furnace Replacement Questions from Kokomo Homeowners
How much is furnace replacement in Kokomo?
Plan on $3,100 to $7,600, with most jobs near $5,600. Equipment efficiency, house size and the condition of the ducts and wiring decide where your quote falls.
When is the best time to schedule furnace replacement in Kokomo?
Between late spring and early fall. Kokomo averages 131 freezing nights a year, and heating calls spike from November through February.
Is a high-efficiency furnace worth it?
In cold climates, a 95%+ AFUE furnace usually earns back the price difference in lower gas bills. Where winters are mild, the payback can take a very long time.
How long does a furnace replacement take?
A straight swap is usually done in one day, somewhere between 4 and 10 hours. Moving to a condensing furnace with new PVC venting can add a few more.
Furnace Replacement Near Kokomo
- Westfield $4,300 to $10,600
- Terre Haute $2,900 to $7,200
- Muncie $3,000 to $7,300
- Anderson $3,000 to $7,400
- Gary $3,100 to $7,600
- Elkhart $3,100 to $7,600
- Greenwood $3,600 to $8,700
- Jeffersonville $3,200 to $7,700
Sources: U.S. Census Bureau ACS 5-year estimates 2019-2023 and 2024 population estimates; NOAA NCEI U.S. Climate Normals 1991-2020, station Kokomo; NOAA Storm Events Database 2020-2025, Howard County. Prices are our estimates, not contractor quotes. Updated 2026.