Living in Minnesota means embracing vibrant cities, charming small towns, and, of course, the occasional snowstorm. But what about the cost of living in Minnesota? Typically, Minnesota isn’t considered a high cost of living state, but certain expenses can add up. Whether you’re drawn to the cultural buzz of the Twin Cities or the peaceful allure of the North Shore, your budget will play a key role in deciding where to call home. From housing costs to everyday expenses, the Land of 10,000 Lakes has a little something for everyone—if you know where to look. Let’s dive into what it really takes to live comfortably in this Midwestern gem.
Housing costs: Median home prices and average rent in Minnesota
The cost of living in Minnesota is relatively affordable, thanks in large part to below-average housing costs that help keep major expenses in check. With the average rent in Minnesota at $1,420—well below the national average rent of $1,645—renters can enjoy more space for less. That said, costs do fluctuate depending on location. The Twin Cities, Minneapolis and St. Paul, tend to lean more expensive. On the other hand, areas like Moorhead and St. Cloud offer more affordable options, and smaller towns across Minnesota can provide even greater savings. Whether you’re drawn to city life or a quieter setting, Minnesota offers housing options for a range of budgets.
Minnesota housing costs: Average rents and median home sale prices
| City in Minnesota | 1 Bed Avg. Rent | 2 Bed Avg. Rent | Median Home Sale Price |
| National Average | $1,495 | $1,725 | $428,000 |
| Bloomington | $1,880 | $2,420 | $370,000 |
| Duluth | $1,400 | $1,895 | $281,000 |
| Eden Prairie | $1,750 | $2,440 | $507,500 |
| Minneapolis | $1,660 | $2,430 | $340,000 |
| Minnetonka | $1,485 | $1,900 | $515,000 |
| Moorhead | $930 | $1,020 | $262,000 |
| Plymouth | $1,430 | $1,750 | $510,000 |
| Rochester | $1,475 | $1,700 | $332,500 |
| Saint Paul | $1,310 | $1,570 | $287,000 |
| St. Cloud | $875 | $1,140 | $230,000 |
Housing costs in popular cities in Minnesota
Minneapolis
Minneapolis brings the hustle and bustle of a big city with a cost of living to match. Housing here can be on the pricier side compared to the rest of Minnesota, with one-bedroom apartments running around $1,660 and two-bedrooms averaging $2,430. The median home price is $340,000, which is still lower than the national median of $428,000 but definitely higher than other parts of the state. While it’s not exactly bargain territory, the city offers plenty in return—parks, cultural events, great food, and a vibrant job market. If you want the excitement of city life with a bit of a price tag, Minneapolis has you covered.
Read more: 10 Tips to Help Make Your Minneapolis Apartment Search a Breeze
Moorhead
If affordability is at the top of your list, Moorhead is a solid choice – the cost of living in Minnesota is among the lowest in this small city. With one-bedroom apartments going for just $930 a month and two bedrooms at $1,020, rent prices in Moorhead are well below the average rent in Minnesota of $1,420. You can also find homes at a median sale price of $262,000, well below both state and national averages. Nestled near Fargo, North Dakota, Moorhead offers the peace of suburban life without sacrificing proximity to a larger city. It’s a great choice for those moving to Minnesota who want to keep their housing costs low while still having access to nearby amenities.
Saint Paul
Saint Paul is like the calm, more laid-back sibling to Minneapolis, and the cost of living in Minnesota here is a little easier on the wallet. With one-bedroom apartments averaging $1,310 and two-bedrooms at $1,570, it’s a bit more affordable than Minneapolis but still reflects the energy of the Twin Cities. The median price of homes for sale in Saint Paul is $287,000, which makes buying a home a real possibility for many. Known for its historic charm and family-friendly vibe, Saint Paul gives you access to city life without the sticker shock. It’s a great mix of affordability and convenience with plenty of character.
Read more: 21 Popular Saint Paul, MN Neighborhoods: Where to Live in Saint Paul in 2024
Average utility expenses keep the cost of living in Minnesota moderate
When it comes to utilities, Minnesota residents can expect costs that are generally in line with national averages. Expect to see higher energy bills during those frigid winter months though, especially if you’re heating a larger home. Monthly utility bills—including electricity, water, heating, and garbage—can average around $306, depending on the size of your home and your energy usage. However, when you factor the cost of internet and phone bills into your overall utilities, the average monthly utility bill in Minnesota hovers around $585, which is just below the national average monthly cost of $610. While winter heating may give your budget a workout, the state’s moderate summer weather often balances things out, keeping cooling costs low. Overall, understanding and planning for seasonal fluctuations in your utility bills is key to managing the cost of living in Minnesota.
Utility bill comparisons: PA cities vs. nationwide average
| Monthly Energy Bill | Monthly Phone Bill | Comparison to National Avg. | |
| National Average | $203.40 | $194.11 | |
| Mankato | $207.49 | $190.09 | 0% |
| Minneapolis | $194.39 | $190.68 | -3% less |
| Moorhead | $148.06 | $196.76 | -16% less |
| Rochester | $228.06 | $178 | +2% more |
| St. Cloud | $186.52 | $189.71 | -6% less |
| St. Paul | $190.61 | $191.40 | -4% less |
Expect to pay a bit more for groceries in Minnesota
Grocery costs in Minnesota run about 11% higher than the national average, making food a notable part of the cost of living in Minnesota. Whether you’re stocking up for cozy winter meals or summer barbecues, expect to spend a bit more at the checkout compared to other states. Prices can vary depending on where you shop, with urban areas like Minneapolis and Saint Paul typically seeing higher costs than smaller towns. Local farmers’ markets and co-ops might offer fresh options, but they often come at a premium. While groceries here aren’t the cheapest, the quality of local produce and specialty items can make the higher price tag feel worthwhile.
Minnesota residents pay less for transportation costs
Minnesota residents typically pay a little less for transportation than the national average, making it a relatively affordable state for getting around. Gas prices, for example, average $2.85 per gallon compared to the current U.S. average of $3.06. Car owners benefit from slightly lower maintenance and registration costs, though expenses like insurance can vary, often rising in more densely populated areas like Minneapolis and Saint Paul. For those in the Twin Cities, public transit offers a budget-friendly option, with fares starting at $2 and monthly passes available for under $100. However, outside urban hubs, limited transit options mean most residents rely on cars, balancing lower gas prices with the added cost of vehicle ownership.
Healthcare costs vary, but tend to be higher than nationwide averages
Healthcare costs in Minnesota can vary depending on your personal needs, insurance coverage, and where you live. While the cost of care generally aligns with the state’s higher-than-average standard of living, some services stand out. For example, dental care in Minnesota averages $113.66 in Rochester, slightly under the national average of $116.86, but rises to $123.83 in Moorhead. Doctor visits show an even bigger range: $181.35 in Rochester, $167.07 in St. Paul, and a steep $226.01 in Moorhead—all above the national average of $142.74. These higher rates, particularly for medical visits, reflect Minnesota’s strong healthcare infrastructure and the presence of renowned medical institutions like the Mayo Clinic. While costs might seem high, many residents value the quality of care available in the state, which plays a key role in the cost of living in Minnesota.
Prepare for higher tax rates in Minnesota
Taxes in Minnesota play a significant role in shaping the cost of living, especially compared to other states. The state’s individual income tax is on the higher side, with a graduated rate ranging from 5.35% to 9.85%, depending on your earnings. Corporate taxes are also steep at 9.8%, which can indirectly influence local prices. Sales taxes in Minnesota include a 6.875% state rate, with the average combined state and local rate landing at 8.04%, adding up when making everyday purchases. On the brighter side, the state’s effective property tax rate is a manageable 0.98% of a home’s value. However, Minnesota ranks 44th on the 2025 State Tax Competitiveness Index, signaling that its tax system may be less appealing than most. While higher taxes fund robust public services and infrastructure, they’re an important factor to weigh when assessing the cost of living in Minnesota.
How much do I need to earn to live in Minnesota?
To live comfortably in Minnesota, it’s helpful to consider the 30% rule—a guideline suggesting you allocate no more than 30% of your income toward housing. With the average rent in Minnesota at $1,420, you’d need to earn approximately $4,733 per month, or around $56,800 annually, to keep housing costs within that range. For those renting larger homes or living in higher-cost areas like Minneapolis, where a two-bedroom averages $2,430, the income requirement jumps significantly. While the 30% rule provides a good starting point, remember that other expenses—like utilities, transportation, and healthcare—can influence your ideal budget.
Read more: The 10 Best Places to Live in Minnesota in 2024
Methodology
Average 1-bedroom and 2-bedroom rent sourced from Rent. Median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin.
