An Indiana city is selling $1 homes to save itself from decay. Here's what you can get for the money.

The small city of Gary, Indiana, has endured decades of hard times. More than half of its population has disappeared since 1960, and a third of its homes remain unoccupied or abandoned. 

Recent years have seen high levels of crime and low levels of employment and education.

The local school district has even taken to selling off dilapidated schools that have been subjected to vandalism and arson. Despite their crumbling walls and graffitied doors, the buildings may be the district's last hope for paying off its $100 million debt.

Read more: 8 cities and towns where you can get a home for free — or buy one at a massive discount

Empty homes are seen as both a burden and an opportunity.

In 2013, the city began selling abandoned properties for a single dollar, provided that the buyer earned at least $35,250 annually and brought the home up to "habitable standards" within a year. At the end of five years, the city would cede full ownership.

The start of the program brought hundreds of applications, though many didn't realize that the homes would require extensive repairs.

A housing coordinator for the city's Department of Community Development told The Times of Northwest Indiana that renovations to dollar homes could cost about $20,000 to $30,000. That's still much cheaper than the average home price in Gary, which hovers at around $46,000. 

The Department of Community Development lists a dozen $1 homes on its website, all of which have been purchased. Though all of them are in need of serious renovations, they have plenty of untapped potential. Take a look below.

The city of Gary wasn't always in decline.

Gary Community Development

With an economy tied to the steel industry, it saw extraordinary growth at the beginning of the 20th century.

Gary Community Development

The city got its name from Elbert Henry Gary, the founding chairman of the US Steel Corp.

It has also maintained some surprising connections to Hollywood.

Gary Community Development

As the birthplace of Michael Jackson, Gary hosts an annual tribute to the legendary singer.

The city has also served as a filming location for movies, including "Transformers: Dark of the Moon" and the 2010 remake of "A Nightmare on Elm Street."

Though Gary is just 30 minutes outside of Chicago, luring residents to the area has proven difficult.

Gary Community Development

Gary's Dollar Home Program isn't the first of its kind.

The program was modeled after an initiative by the US Department of Housing and Urban Development, which indirectly sold Gary Mayor Karen Freeman-Wilson her first home.

Freeman-Wilson originally hoped to sell 50 of the dollar homes each year, but only a handful are listed on the site. 

The city opened its Dollar Home Program to nonresidents to attract more buyers.

Gary Community Development

Source: The Times of Northwest Indiana

Buyers don't have to pay mortgages, but they're expected to pay taxes and utilities.

Gary Community Development

They'll also likely have to gut the properties, which are less than desirable on the inside.

Gary Community Development

Many of the homes have peeling walls and rusted appliances.

Gary Community Development

Like many former manufacturing towns, Gary hopes to reverse a period of longstanding blight.

Gary Community Development

Historian S. Paul O'Hara summed up the city's Dollar Home Program to the New York Times: "It's not flashy," he said. "It doesn't come with promises, but it does come with possibilities."