Freetown is located in northwestern Jackson County and is bordered to the west by Hoosier National Forest. Indiana State Road 135 passes through the west side of the community, leading north 18 miles (29 km) to Gnaw Bone and south 11 miles (18 km) to Brownstown, the Jackson county seat. State Road 58 passes through the west and north sides of the community, leading northeast 23 miles (37 km) to Columbus and southwest 27 miles (43 km) to Bedford.
According to the U.S. Census Bureau, the Freetown CDP has a total area of 0.73 square miles (1.88 km2), of which 1.9 acres (7,820 m2), or 0.42%, are water.[3]