North Dakota might not always make the headlines, but its cost of living definitely deserves a closer look. With affordable housing, low taxes, and plenty of outdoor space, the state offers a great quality of life without breaking the bank. Whether you’re considering a move for work, family, or a change of scenery, the balance of low costs and growing job opportunities makes North Dakota a good place to live for many. Let’s learn more about what to expect from the affordable cost of living in North Dakota.
Housing costs: Median home prices and average rent in North Dakota
Housing in North Dakota is surprisingly affordable compared to national averages, making it a great place to put down roots without draining your savings. The cost of living in North Dakota is much lower than the national average, and that holds true for housing as well. While places like Fargo and Bismarck have seen some increases in rent due to the state’s growing economy, you can still find a comfortable 2-bedroom apartment for well below the national average rent of $1,645. Home prices in North Dakota are hard to beat, too. The median home sale price sits around $340,000, which is quite a bit lower than the national median home price of $428,000. If you’re willing to look beyond the state’s major cities, you can snag even more affordable options in smaller towns, where rents can dip as low as $800 a month. North Dakota’s housing market, overall, offers a sweet spot for those looking to keep their housing expenses low while still enjoying a vibrant and growing community.
ND housing costs: Average rents and median home sale prices
| City in North Dakota | 1 Bed Avg. Rent | 2 Bed Avg. Rent | Median Home Sale Price |
| National Average | $1,495 | $1,725 | $428,000 |
| Dickinson | $975 | $1,110 | $312,000 |
| Fargo | $1,000 | $1,125 | $307,000 |
| Grand Forks | $1,190 | $1,410 | $288,000 |
| Jamestown | $790 | $1,000 | $240,500 |
| Mandan | $1,075 | $1,200 | $309,000 |
| Minot | $950 | $1,040 | $255,000 |
| Williston | $1,040 | $1,225 | $297,500 |
Housing costs in popular cities in North Dakota
Fargo
Fargo is the largest city in North Dakota and serves as a hub of commerce, education, and culture in the state. The cost of living in Fargo is quite affordable, especially when compared to the national average. With an average 1-bedroom rent of $1,000 and a 2-bedroom apartment going for around $1,125, you’ll find yourself paying considerably less than the national average rent of $1,645. Housing costs here are notably lower than the national median home sale price of $428,000, with homes in Fargo typically priced around $307,000. Fargo’s combination of low rent and home prices makes it a strong contender for anyone seeking an affordable yet vibrant place to live in the Midwest.
Grand Forks
Grand Forks, home to the University of North Dakota, brings a slightly higher cost of living compared to other parts of the state, but it remains a budget-friendly option in the grand scheme of things. With the average rent for a 2-bedroom apartment at $1,410, it still comes in under the national average of $1,645. The city’s housing market is also more affordable, with a median home sale price of $288,000, far below the national median of $428,000. Grand Forks is known for its strong community and college-town atmosphere, offering a variety of cultural, recreational, and educational opportunities. It’s a great place for those who want a little more vibrancy without the high price tag of larger cities. Whether you’re renting near the university or looking for a more suburban feel, housing costs in Grand Forks remain affordable for most.
Utility costs tend to be cheaper in North Dakota
Utility costs in North Dakota are generally less than the national average, though you may see some variation depending on the season, especially with the state’s extreme winters and summers. On average, residents can expect to pay around $320 per month for basic utilities, including electricity, heating, cooling, water, and garbage. When you factor in additional costs like internet and phone bills, your monthly utility expenses could rise to around $580.59—still a reasonable total compared to the national average of $609.90. Keep in mind that winter heating costs can add up, especially in more rural areas where propane and heating oil are common. That said, North Dakota’s utility costs tend to remain manageable, and energy efficiency is becoming more of a priority in newer homes and apartment buildings.
Utility bill comparisons: ND cities vs. nationwide average
| Monthly Energy Bill | Monthly Phone Bill | Comparison to National Avg. | |
| National Average | $203.40 | $194.11 | |
| Bismarck-Mandan | $147.01 | $196.01 | -17% less |
| Fargo | $148.06 | $196.76 | -16% less |
| Grand Forks | $161.58 | $194.42 | -13% less |
| Minot | $150.72 | $196.76 | -15% less |
Grocery prices are also less in North Dakota compared to nationwide averages
Grocery costs in North Dakota are quite favorable compared to the national average. On average, residents spend about 8% less on groceries each month than the typical U.S. household. This lower grocery cost helps keep the overall cost of living in North Dakota attractive, especially when compared to more expensive states. While local pricing can vary depending on the region and availability of products, North Dakota’s grocery bills remain quite manageable, making it an appealing place for those looking to stretch their budget a little further.
Getting around North Dakota is easier on the wallet
Transportation costs in North Dakota are relatively low compared to the national average, particularly when it comes to gas. At $2.88 per gallon, North Dakota’s fuel prices are about 6% cheaper than the U.S. average of $3.07 per gallon. This helps keep overall transportation expenses down, making it more affordable for residents who rely on their cars. However, owning a vehicle in the state still comes with typical yearly costs, such as vehicle maintenance, registration, and insurance. The cost of car insurance in North Dakota is generally lower than the national average, but rates will vary depending on your vehicle and driving history. Public transportation in North Dakota is limited, particularly outside larger cities like Fargo, so most residents rely on private vehicles. While this means lower transportation costs in terms of fuel and tolls, it’s important to consider the overall expense of owning a car in a state where driving is a necessity rather than an option.
Healthcare costs sit slightly above national averages in North Dakota
Healthcare costs in North Dakota will vary depending on your needs and the type of coverage you have, but in general, residents can expect to pay somewhat higher rates for medical and dental services compared to the national average. While health insurance premiums and out-of-pocket costs differ greatly depending on factors like age, family size, and employer coverage, it’s important to know what to expect for basic visits. For example, in Fargo, a routine dentist visit costs about $123.83, which is just a bit above the national average of $116.86. Doctor visits in Fargo are notably higher, at $226.01 compared to the national average of $142.74. In Minot, dentist visits are a little more expensive at $133.75, while doctor visits are more affordable, averaging $160.99. It’s worth noting that healthcare costs can fluctuate based on your personal plan, so it’s always a good idea to shop around for insurance plans and compare out-of-pocket expenses.
Lower taxes help the cost of living in North Dakota remain affordable
When it comes to taxes, North Dakota offers relatively low rates that contribute to its overall affordable cost of living. The state’s individual income tax is graduated, with rates ranging from 1.95% to 2.50%, which is well below the average rates in many other states. Additionally, North Dakota has a state sales tax rate of 5.00%, and when combined with local taxes, the average sales tax rate rises to 7.04%. This falls in line with national averages for sales tax, which are between 5-7%.
Property taxes are also on the lower end, with an effective property tax rate of 0.97% on owner-occupied homes, making it more affordable for homeowners. With a tax system that ranks 9th on the 2025 State Tax Competitiveness Index, North Dakota continues to be one of the more tax-friendly states in the U.S., making it easier for residents to manage their finances and save.
How much do I need to earn to live in North Dakota?
To live comfortably in North Dakota, you’ll need to earn a lot less than many other states across the U.S. require. It’s recommended that you spend no more than 30% of your income on housing costs. This is known as the “30% rule” — a common budgeting guideline that helps ensure your housing expenses are manageable while leaving room for other essentials like food, transportation, and savings. For example, if you’re living in Fargo and paying an average rent of $1,125 for a two-bedroom apartment, you’d need to earn at least $3,750 per month, or about $45,000 annually, to stay within that 30% range. On the other hand, if you’re in Grand Forks, where the average rent for a two-bedroom is $1,410, your monthly income would need to be closer to $4,700, or about $56,400 a year, to keep housing costs at a comfortable level. Regardless of where you live in North Dakota, the overall cost of living remains well below national averages, so reaching a comfortable living wage is definitely achievable here.
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.
