Want Minnesota’s lakefront lifestyle without Woodbury’s high prices? Don’t give up on the dream. You can afford a house in The North Star State if you know where to look.
Your perfect home could be a family-friendly house in Albert Lea or a starter home in Marshall, Minnesota’s educational hub. If you’re retiring, look at homes for sale in Austin to enjoy a low-cost coastal lifestyle, with median home prices under $190,000.
After assessing hundreds of cities, we’ve ranked the 10 most affordable places to live in Minnesota to help you find a home that fits your budget.
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Key Takeaways
- Fairmont is the most affordable city: Fairmont’s cost of living is 15% lower than the state average. With a median home price of $149,000, it is the cheapest place to live in Fairmont.
- Duluth is the best city for young professionals: It offers growing sectors in healthcare, education, small business, and tourism.
- For families, Crookston is a great choice: With small-town charm, very cheap housing and top-notch schools, Crookston is an ideal place to raise a family on a budget.
- Retirees should consider Austin: The city offers low living costs, strong healthcare access, and a calm, community-oriented lifestyle.
- Don’t forget Minnesota’s “home insurance costs”: Minnesota average home insurance costs are roughly $2,400–$3,000 per year, which is below or near the U.S. average, but still a meaningful ongoing expense.
10 Cheapest Places to Live in Minnesota in 2026
| City | Median Home Value | Median House Rent | Cost of Living Compared to State Average | Affordability Score (out of 10) |
|---|---|---|---|---|
| 1. Fairmont | $149,000 | $651 | 15% ⬇️ | 8.5 |
| 2. Crookston | $170,000 | $760 | 11% ⬇️ | 8.4 |
| 3. Albert Lea | $158,500 | $950 | 14% ⬇️ | 8.2 |
| 4. Hibbing | $165,000 | $1,000 | 10% ⬇️ | 8 |
| 5. Marshall | $245,500 | $990 | 9% ⬇️ | 7.2 |
| 6. Austin | $190,000 | $1,287 | 7% ⬇️ | 7.1 |
| 7. Worthington | $333,950 | $1,180 | 17% ⬇️ | 6 |
| 8. Bemidji | $255,000 | $1,500 | 7% ⬇️ | 5.9 |
| 9. St. Paul | $300,000 | $1,514 | 2% ⬇️ | 5.3 |
| 10. Duluth | $272,000 | $1,600 | 1% ⬆️ | 5.3 |
How We Ranked the Most Affordable Places to Live in Minnesota
To identify the cheap places to live in Minnesota, we carried out an in-depth analysis using multiple reliable data sources and indicators of affordability.
Data Sources:
- Median Home Prices: We used Houzeo’s Minnesota Housing Market report and double-checked the numbers with the Minnesota Housing (State Housing Finance Agency).
- Median Rent: We got the rent data from C2ER, which publishes the national Cost of Living Index. This was verified every few months to make sure it’s accurate.
- Overall Cost of Living: We covered 6 big spending categories— housing, groceries, utilities, transportation, healthcare, and miscellaneous goods— from C2ER and Houzeo’s Cost of Living in Minnesota Calculator. We then compared everything to the U.S. average of 100.
We studied housing data from 2022 to 2025 to identify cities that remained affordable over time, not just during short dips in prices. Furthermore, each city’s data was also cross-checked with HUD and state economic reports.
All our information is up to date as of 2025, ensuring you receive the most current insights.
Affordability Scoring:
We built a simple scoring system that focuses on what really matters:
- Median Home Price (40%)
- Median Rent (35%)
- Cost of Living (25%)
This way, we can clearly show which Minnesota cities give you the best value for your money. You can also check out our score breakdown to see how each city was ranked.
Image credits: All blog images are sourced from Freepik.
10 Cheapest Places to Live in Minnesota
Fairmont is considered as the cheapest place to live in MN. Residents still have access to a network of parks and nearly 400 acres of green space, plus five interconnected lakes that support swimming, boating, and trails, giving the city a strong outdoor-focused lifestyle.
- Fairmont West: It is a quiet suburban neighborhood with single-family homes. Appeals to buyers due to proximity to Fairmont Jr./Sr. High School and nearby parks like Cedar Creek Park with nature trails.
- Fairmont South: This is a residential area characterized by more affordable housing. Buyers value access to Fairmont Aquatic Park at 1400 South Prairie Avenue for water activities and Fairmont Area Schools elementary options.
- City Center: The neighborhood has a dense urban core with shops, the Fairmont Opera House, and Five Lakes Shopping Center. Attracts those seeking walkability to Sylvania Park’s band shell for concerts and St. John Vianney School.
- Job Market: Fairmont’s economy centers on advanced manufacturing, agriculture processing, and healthcare, with major employers including 3M, Mayo Clinic Health System, CHS, Avery Weigh-Tronix, and Fairmont Foods.
- Recreation: Fairmont features nearly 400 acres of parks, including Gomsrud Park for playgrounds and disc golf. Sylvania Park hosts community events, and Cedar Creek Park offers two 18-hole disc golf courses plus trails. Landmarks like the Fairmont Opera House host performances, while Heritage Acres provides historical exhibits
- Job Diversity: Recent business surveys highlight ongoing workforce shortages, contributing to a stable but narrow job market amid Minnesota’s 3.5% unemployment rate in July 2025.
- Natural Disaster Risks: Fairmont faces tornado risks, with Minnesota recording 22 confirmed tornadoes in December 2021 alone, including EF-2 strength near the region.
- Limited Amenities: As a small city of about 10,000 residents, shopping and entertainment options are basic, with no major chains or urban nightlife beyond local spots like Five Lakes Shopping Center.
Crookston’s lifestyle centers on outdoor recreation along the Red Lake River, featuring 22 parks with trails, splash parks, playgrounds, a community pool, and nearby kayaking spots. Accessibility includes dial-a-ride public transit serving curb-to-curb needs, wheelchair options, and an active transportation plan.
- Anglim: It is a rural residential area with single-family homes and apartments near the University of Minnesota Crookston campus. Appeals due to short commutes and proximity to Crookston High School and Highland Elementary.
- Crookston Junction: This is a rural neighborhood featuring historic single-family homes built mostly before 1939 and some apartments. It offers quick access to Central Park and Washington Elementary.
- Downtown Crookston: A compact urban-residential zone with historic buildings and mixed housing around the central business district. Buyers value nearness to Grand Theatre, Ox Cart Days festival events, and Crookston Public Schools including Cathedral School.
- Job Market: Crookston’s economy centers on agriculture supported by processing plants like American Crystal Sugar Co. A $3.3 million grant in 2025 targets industrial park infrastructure to attract new businesses.
- Recreation: Landmarks include the Grand Theatre, one of the longest continuously operating theaters, and the Polk County Historical Museum with the world’s largest Ox Cart display. The Crookston Sports Center and Ray Ecklund Complex host multi-use sports.
- Severe Winters: Crookston experiences severe winters with average temperatures below 20°F from December to February, heavy snowfall exceeding 50 inches annually, and frequent sub-zero wind chills.
- Limited Entertainment Options: With few restaurants, bars, or cultural venues beyond basics like Walmart and McDonald’s, leads to complaints of boredom.
- Limited Healthcare: Healthcare relies primarily on Riverview Hospital for basic services, requiring travel to Grand Forks for specialized care.
The city’s lifestyle centers on Fountain Lake and Albert Lea Lake, enabling boating, fishing, and trails like the Blazing Star Trail. It also provides proximity to Interstate 35 for regional travel and local employers in healthcare and manufacturing, supporting a practical daily routine.
- Albert Lea Northeast: It’s a suburban neighborhood with medium-sized single-family homes built mostly 1940-1969. It is attractive due to proximity to parks and retirement-friendly quiet setting; near Hawthorne Elementary School and Hawthorne Park with playground and ballfield.
- Albert Lea North: This is a quiet residential area with single-family homes and green spaces adjacent to schools. It’s close to Lakeview Elementary School and Lakeview Park, offering playgrounds and fishing access close to Fountain Lake trails.
- City Center: It has a dense urban core with historic buildings, shops, and lower-middle income housing. Also offers access to Marion Ross Performing Arts Center, Freeborn County Fair events, and downtown festivals like Thursdays on Fountain.
- Job Market: Key industries in Albert Lea include manufacturing, healthcare, and trade/transportation/utilities. Major employers are Mayo Clinic Health System, Albert Lea Select Foods, Mrs. Gerry’s Kitchen, and Frito-Lay.
- Recreation: Popular spots include Myre-Big Island State Park for hiking and camping, Blazing Star State Trail for biking, and All Together Inclusive Playground at Academy Park. These support outdoor activities across 41 parks totaling over 300 acres.
- Stagnant Economy: Albert Lea has experienced long-term economic decline since the meatpacking plant closure, with population stagnation since 1960 and limited job growth beyond manufacturing and healthcare.
- Limited Entertainment: Few daily activities for teens and families, with closed malls, overpriced theaters, and complaints of “nothing to do” beyond basic amenities.
- Poor Infrastructure: Frequent potholes, road construction delays, and issues like elevator breakdowns in apartments affect daily accessibility.
The city offers residents a comfortable lifestyle with access to scenic parks, local lakes, and small-town amenities. Its compact layout and reliable transport options make commuting easy. With diverse homes for sale in Hibbing, the city appeals to those seeking both affordability and accessibility in northern Minnesota.
- City Center: It is the urban core with historic buildings and downtown access near Hibbing High School. It appeals to buyers for proximity to the school’s Tudor Revival architecture, Hibbing Jubilee festival events, and nearby parks like Veterans Memorial Park.
- Ruby Junction: This is a quiet residential hamlet adjacent to Brooklyn and Redore areas. Buyers value its low-key suburban setting with access to local neighborhood parks and Mesabi Trail connections.
- Brooklyn: It is a low-income residential neighborhood paired with Kitzville, featuring Brooklyn Park. Attracts families due to playgrounds, outdoor rinks, and greenspace in the park, plus homes for sale nearby.
- Job Market: Key industries in Hibbing center on iron ore mining and manufacturing, with major employers including Hibbing Taconite Company, L&M Radiator, Hibbing Community College, and Fairview Range Medical Center.
- Recreation: Popular sites include Hull-Rust-Mahoning Mine, the world’s largest open-pit iron ore mine known as the “Grand Canyon of the North,” and Carey Lake Park with its beach, boat launch, and fishing piers.
- Harsh Winters: Hibbing experiences long, cold winters with average lows of 29.1°F and 59.2 inches of annual snowfall, requiring preparation for extended seasonal darkness and snow management.
- Economic Dependence on Mining: Job stability ties closely to the iron ore mining industry, where layoffs from companies like Hibbing Taconite cause population decline and economic uncertainty.
- Social and Drug Issues: Residents note normalized addiction to nicotine, alcohol, and drugs, contributing to related crimes and a sense of increasing unsafety.
The city offers accessible outdoor recreation across 16 parks spanning over 150 acres, including walking and biking trails, fishing ponds, playgrounds, a skate park, and an archery range. Proximity to Southwest Minnesota State University provides educational access and cultural events.
- City Center: An Urban downtown area with shops, eateries, and city offices along Main Street. It is attractive due to proximity to Liberty Park’s playground, bandshell, and Redwood River, plus Marshall Area Transit access.
- East Marshall: It’s a Rural, low-density residential neighborhood with medium-sized homes. It’s near East College Drive businesses and Camden Regional Bike Trail connecting to parks and Southwest Minnesota State University.
- Southwest Minnesota State University: This is a campus-focused suburban area with student housing and athletic facilities like Mattke Field. Adjacent to Marshall High School, Park Side Elementary, and the university’s track complex for educational access.
- Job market: Marshall’s economy centers on manufacturing, food processing, healthcare, and education. Major employers include Hormel Foods for food processing, Vishay HiRel Systems and Ralco in manufacturing and agriculture tech, Hy-Vee for retail, and Southwest Minnesota State University.
- Recreation: Key sites include Boards & Blades Skate Park for skating, Marshall Aquatic Center for swimming (new facility opening 2026), and Garvin County Park’s 19-hole disc golf course.
- Harsh Winter Weather: Marshall faces severe winters typical of Minnesota, with risks from blizzards, straight-line winds, and heavy snow that can damage infrastructure and disrupt daily life.
- Tornado and Flood Risks: The area lies near Tornado Alley with a 70% annual chance of tornadoes somewhere in Marshall County, alongside flooding vulnerabilities from the Redwood River.
- Poor Infrastructure: Roads and alleys suffer from severe potholes and neglect, even in affluent areas, contributing to daily frustrations for residents.
Austin is one of the cheap cities to live in Minnesota. The city offers an accessible lifestyle with a safe multimodal transportation network, including extensive trails like the Cedar River and Todd Park paths that connect parks and neighborhoods.
- Downtown: It is an urban core with commercial activity and historic sites like the Paramount Theatre. Appeals due to walkability to Horace Austin Park, municipal pool, and proximity to Austin High School.
- Austin East: This is a suburban residential area with mid-20th-century homes and above-average safety. Buyers value access to East Side Lake park, Oakland Place NE trails, and employment in nearby manufacturing.
- Central Austin: It is a quiet residential neighborhoods around the central business district. Offers convenience to Bandshell Community Park for Independence Day events and Neveln Elementary School.
- Job Market: Key industries in Austin center on food processing and manufacturing, with Hormel Foods as the dominant employer. Mayo Clinic Health System and Austin Public Schools provide additional stability in healthcare and education.
- Recreation: The Jay C. Hormel Nature Center spans 507 acres with 10 miles of trails, an interpretive center, and rentals for canoes, kayaks, skis, and snowshoes. SPAM Museum in downtown features Hormel history exhibits, while Mower County Fairgrounds host the annual fair.
- Industrial Odors: Hormel Foods processing plants produce noticeable meat and waste smells, particularly in east and central neighborhoods.
- Harsh Winters: Extreme cold with average January lows around -10°F and heavy snowfall exceeding 50 inches annually limits outdoor activities for months.
- High Crime Rates: Property and drug-related crimes exceed state averages, with resident reviews citing meth prevalence and safety concerns in certain areas.
Worthington blends an affordable cost of living with easy access to parks, scenic lakes, and a relaxed small-town pace. With convenient transportation and practical amenities supporting everyday life, homes for sale in Worthington offer a compelling balance of comfort, accessibility, and long-term value.
- Worthington City Center: It is an urban core with a mix of commercial and residential areas near downtown shops and the Nobles County Government Center. It offers access to the International Festival in July and proximity to Worthington Middle School.
- Worthington South Shore: This is a quiet residential area along Lake Okabena’s southern edge, featuring lakefront views and access to Slater Park. Buyers value nearness to Centennial Park’s beach and trails, plus events like the Beach Bash on July 3rd with fireworks.
- Worthington West: A suburban neighborhood noted for longer commutes and family-oriented housing stock. Attracts residents due to closeness to West Learning Center and Prairie Elementary School.
- Job Market: Worthington’s economy centers on manufacturing, food processing, healthcare, and education. Key employers are JBS, Bedford Industries, Sanford Health, and Worthington School District 518.
- Recreation: Worthington features 24 parks, including Nobles County Pioneer Village for historical exhibits and Prairie View Golf Course for 18-hole play. The Worthington Aquatic Center offers water slides and pools, while the Okabena Lake Trail provides 5 miles of biking and walking paths.
- Weather Extremes: Worthington experiences harsh winters with average lows of 34°F and 44 inches of annual snowfall, alongside summer highs reaching 92°F.
- Elevated Crime Rates: The area faces a 1 in 248 chance of violent crime and a 1 in 93 chance of property crime. Assault and rape rates remain notable compared to national figures, highlighting ongoing public safety concerns.
- Rural Isolation: As a small rural community, Worthington offers limited housing variety and requires travel for diverse dining, shopping, or cultural events.
Surrounded by pristine lakes, public parks, and sandy beaches, it provides year-round outdoor recreation. With reliable local transport and a walkable downtown, homes for sale in Bemidji attract those seeking accessible, nature-oriented living at a reasonable price.
- Bemidji North: A quiet suburban residential area north of central Bemidji, near Northern Elementary School. It is attractive to families due to proximity to Paul Bunyan Park and Lake Bemidji State Park for trails and beaches.
- Birchmont: It is a rural lakeside neighborhood along Birchmont Beach Road with low-density homes and lake access. Buyers value closeness to Northern Elementary School and Birchmont Beach on Lake Bemidji.
- Bemidji West: This is a residential area west of downtown featuring single-family homes and multi-family options. Attracts residents for access to Bemidji Middle School and Diamond Point Park.
- Job Market: Key industries in Bemidji include healthcare, education, government, retail trade, and manufacturing. Major employers are Sanford Health, Bemidji Area Schools, Bemidji State University, and Beltrami County.
- Recreation: Bemidji offers the 115-mile Paul Bunyan State Trail for biking and hiking, starting from the city. Three Island Lake County Park provides scenic views and trails on 2,915 acres north of town.
- High Crime Rate: Bemidji reports one of Minnesota’s highest per capita crime rates, primarily property theft and driven by poverty and substance abuse, with a 21% poverty rate.
- Harsh Winters: Extreme cold and long winters typical of northern Minnesota can exceed -30°F, limiting outdoor activities for months.
- No Public Transit: Lack of reliable public transportation requires personal vehicles for most daily needs.
The city provides accessible transport options like buses, light rail, bike paths, and walking routes, supporting efficient commuting. Over 180 parks, 120 miles of trails, public beaches, pools, and proximity to the Mississippi River enhance outdoor lifestyle access.
- Greater East Side: This urban-suburban neighborhood features a mix of residential homes and parks like Conway Park, with a quiet, family-oriented atmosphere. It offers proximity to Frost Lake Elementary and East Side Environmental Justice Food Give-away.
- Macalester-Groveland: The area blends quiet residential streets with college proximity to Macalester College, offering a walkable access to Grand Avenue shops. It appeals due to schools like Groveland Park Elementary and parks such as Trout Brook Nature Sanctuary.
- Summit Hill: It presents a historic residential enclave with tree-lined streets and elegant Victorian homes, maintaining a peaceful, upscale quietude. Proximity to Mears Park for farmers markets and outdoor concerts, plus landmarks like Summit Avenue and the Cathedral of Saint Paul, draws buyers.
- Job Market: The local economy is supported by healthcare, manufacturing, and finance. Major employers are 3M, UnitedHealth Group, Allina Health, and Ecolab.
- Recreation: Harriet Island Regional Park hosts concerts and riverfront events, while Como Regional Park features the free Como Zoo & Conservatory and Lake Como for picnics. Landmarks like the Cathedral of Saint Paul and Indian Mounds Regional Park offer historical trails and city overlooks.
- High Crime Rates: St. Paul’s violent crime rate stands at 1 in 162 chance of victimization, with 1,874 incidents reported, while property crime risk is 1 in 33.
- Natural Disaster Risks: St. Paul lies in a region prone to flash flooding and winter storms. About 20% of buildings face significant flood risk, with a 26% chance of 1.4-foot-deep flooding over 30 years in some tracts.
- Limited Job Diversity and Amenities: Labor market shows systemic disparities for workers of color, with historical underrepresentation in higher-wage roles. Limited diversity in shopping, entertainment, and upscale retail compared to Minneapolis.
The city offers strong lifestyle appeal through extensive parks, like Lester Park for hiking, and unique beaches on Park Point, the world’s longest freshwater sandbar along Lake Superior. Accessibility is enhanced by Interstate 35 connections, local bus services via Arrowhead Transit, and a compact layout with short commutes.
- Congdon Park: It’s a quiet residential neighborhood with wooded trails and pristine hiking in Congdon Park featuring Tischer Creek waterfalls and bridges. It has proximity to Congdon Park Elementary, East Ordean Middle School, East High School.
- Kenwood: A large suburban area with peaceful residential streets, parks like Kenwood Park for picnics and sports, and a commercial hub at Kenwood and Arrowhead.
- Park Point: It’s a coastal neighborhood on the world’s longest freshwater sandbar with sandy beaches, Park Point Rec Area for swimming, volleyball, and trails.
- Job Market: Duluth’s key industries include healthcare, manufacturing, education, and port-related logistics. Major employers are Essentia Health, University of Minnesota Duluth, Minnesota Power (ALLETE), Cirrus Aircraft, and the Duluth Seaway Port Authority.
- Recreation: Popular attractions include the Aerial Lift Bridge for shipwatching, Glensheen Historic Mansion with guided tours, and Enger Park and Tower. Bayfront Festival Park hosts concerts and events, while Spirit Mountain Recreation Area provides skiing and alpine slides year-round.
- Harsh Winters: Duluth experiences over 100 days of sub-freezing temperatures annually, with heavy snow and lake-effect conditions making winters long and challenging.
- High Crime Rates: The city has a D crime grade, with property crimes occurring roughly every two hours and noticeable violent incidents, particularly downtown.
- Homelessness Impact: A significant homeless population affects downtown vibrancy, leading businesses to relocate and reducing the area’s appeal.
Pro Tip If you’re looking for safe, family-friendly suburban lifestyle, Woodbury could be a great option. From Highwood to Battle Creek, you’ll find a wide range of affordable houses in Woodbury with strong rental potential.
North Branch (safety score of 80) and Burnsville (safety score of 77) are the cheapest and safest cities in Minnesota. They offer low crime rates, family-friendly neighborhoods, and a lively, welcoming lifestyle.
Top 3 Affordable Places to live for Young Adults in Minnesota
When looking for the cheapest cities to live in Minnesota, you want more than just cheap rent. You want good jobs, a fun lifestyle, and a city where you can thrive. These cities deliver all three, with affordable housing in Minnesota and growing job markets.
| Rank | City | Why It’s Great for Young Adults |
|---|---|---|
| 1. | Duluth | Duluth offers an outdoor-focused lifestyle on Lake Superior, along with a growing brewery and arts scene, providing year-round recreation. Programs like “Fuse Duluth” from the Duluth Area Chamber of Commerce foster networking and community engagement, making homes for sale in Duluth especially appealing to young professionals. |
| 2. | St. Paul | Major employers such as Ecolab and state government anchor St. Paul’s economy, while a short light-rail ride links residents to downtown Minneapolis. The city’s vibrant neighborhoods, lively food and brewery scene, and arts offerings make homes for sale in St. Paul especially appealing for professionals seeking both community and career opportunities. |
| 3. | Rochester | Mayo Clinic anchors thousands of roles in medicine, research, IT, administration, and support services, attracting young professionals from around the world. This combined with a vibrant downtown and cultural amenities, makes homes for sale in Rochester especially appealing for those seeking career opportunities. |
Top 3 Inexpensive Places to Live in Minnesota for Families
Minnesota is a favorite among families for its warm climate, no state income tax, and affordable housing. These three cities offer low living costs and top-notch schools.
| Rank | City | Why It’s Great for Families |
|---|---|---|
| 1. | Albert Lea | Albert Lea, located on Fountain Lake and Albert Lea Lake, offers children daily opportunities for fishing, boating, and trail activities. With a strong local healthcare sector providing jobs and convenient medical services, homes for sale in Albert Lea appeal to families seeking both recreation and reliable community support. |
| 2. | Fairmont | Nicknamed the “City of Lakes,” Fairmont offers five lakes for swimming, paddling, ice-skating, and lakeside playgrounds. With strong schools, youth sports, library programs, and seasonal festivals, homes for sale in Fairmont are especially appealing to families seeking recreation and community. |
| 3. | Crookston | Families in Crookston benefit from programs like Safety Town, teaching kindergarteners essential safety skills through hands-on activities. With community events and school resource officers enhancing secure learning, homes for sale in Crookston are especially appealing to families seeking both education and safety. |
3 Best Affordable Places to Live in Minnesota for Retirees
Minnesota is a retiree’s haven. In these cheapest cities to live in MN, you can find affordable homes, accessible healthcare, and safe communities. There are also plenty of outdoor activities like kayaking, hiking, and picnics to enjoy a comfortable, active lifestyle.
| Rank | City | Why It’s Great for Retirees |
|---|---|---|
| 1. | Hibbing | Hibbing offers Hull Rust Mine tours, hiking trails, Essentia Health hospital, and Bob Dylan’s childhood home within a close-knit community of about 15,000 residents. These attractions and amenities make homes for sale in Hibbing appealing to those seeking a small-town lifestyle with cultural, recreational, and healthcare access. |
| 2. | Austin | Austin provides residents with access to the Mayo Clinic Health System, the Spam Museum, and the Jay C. Hormel Nature Center, which features over 13 miles of trails. Cultural amenities such as the Austin Symphony Orchestra and the Paramount Theatre enhance community life in a city where 23% of residents are over age 60. |
| 3. | Little Falls | Little Falls offers outdoor recreation at Charles A. Lindbergh State Park, with opportunities for picnics and camping, along with local museums, a zoo, and scenic river walks. These amenities create a charming small-town atmosphere, making homes for sale in Little Falls appealing to those seeking both leisure and community in a town under 10,000 residents. |
3 Hidden Costs to Consider in Minnesota
Even in the cheapest Minnesota cities to live in, home prices are only part of the cost. So, factor in harsh winter expenses along with property taxes when looking for the cheapest area to live in Minnesota.
- Harsh Winter Expenses: Snow removal, salting, and heating spikes cost $500–$3,000 yearly, driven by extreme cold.
- High Property Taxes: Homeowners pay up to 1.05% of home value averages $6,000–$11,000 annually in property taxes.
- Home Insurance Costs: This averages $2,100–$2,900 per year, with 15% projected rises to $3,000+ in Twin Cities due to hail and storms; excludes floods and ice dams.
Quick Tip Minnesota’s Homestead Exemption allows up to $30,400 off the taxable value of your primary residence, which can help reduce costs. Agricultural homesteads get additional tiered exclusions. However, it does not apply to second homes or investment properties.
Savings Breakdown: Cheapest Cities in Minnesota to Live In
Housing costs vary dramatically across Minnesota. Fairmont residents save $2,000 monthly compared to Woodbury and $1,500 compared to Excelsior. The following table breaks down these savings by median home price, monthly mortgage, property tax, insurance, and total monthly costs.
| City | Median Home Price | Avg. Monthly Mortgage | Insurance/taxes | Estimated Monthly Cost for a Single Person | Monthly Savings vs. Miami |
|---|---|---|---|---|---|
| Fairmont | $149,000 | $725 | $566 | $2,500 | $2,000 |
| Excelsior | $375,000 | $1,727 | $1,131 | $3,000 | $1,500 |
| Woodbury | $410,000 | $1,941 | $1,071 | $4,500 | – |
Affordable Living Beyond Minnesota
Not sure if the cheapest places in Minnesota to live will fit your budget? Here are a few surrounding states that offer strong job opportunities, great education, and high quality of life, just like Minnesota.
Strong Job Opportunities
Iowa offers strong job opportunities comparable to Minnesota’s stable market while ranking among the cheapest U.S. states to live in. Here are the three cheapest places to live in Iowa:
- Keokuk: Median home price is $51,500, with rent near $587, and has 2,000 job openings, primarily in healthcare and manufacturing.
- Oelwein: Median home price is $81,500, with rent near $800, with manufacturing and healthcare dominating, with additional openings in coaching and public works.
- Fort Dodge: Median home price is $77,000, with rent near $772, and offers at least 42 active roles across 18 industries, including travel nursing, RN positions, and other healthcare jobs.
Stellar Education
Nebraska rivals Minnesota’s stellar education system, ranking 8th-14th nationally for public schools with top safety and SAT scores. These are the cheapest places to live in Nebraska:
- North Platte: Homes sell at a median price of $190,911, rent under $1,125, with schools like McDonald Elementary (top district) and North Platte High offer strong academics and resources.
- Lexington: Homes sell at a median price of $130,00, rent under $1,289, plus Lexington Public Schools provide diverse programs with B-grade college prep and activities.
- Grand Island: Homes sell at a median price of $249,529, rent under $1,324, and has a strong district with 35% reading proficiency, growth in English learners, and rigorous curriculum via specialized schools
High Quality of Life
Kansas offers a high quality of life similar to Minnesota’s top rankings, with low crime in many areas, ample outdoor recreation. Here are the top 3 cheapest places to live in Kansas:
- Coffeyville: Average home price is $46,500, rent is under $750, and the quality of life shines through low crime, historic charm, and recreational spots like Veterans Memorial Park.
- Parsons: Average home price is $90,000, rent is under $850, and residents enjoy a peaceful vibe with parks, cultural festivals, and strong neighborhood safety.
- Arkansas City: Average home price is $140,000, rent is under $875, and features riverfront trails, arts venues, and family-friendly events promoting active, connected lifestyles.
So, Where Is the Cheapest Place to Live in Minnesota?
Fairmont, Crookston, and Albert Lea are the most affordable cities to live in Minnesota. These areas offer more than low prices; they also provide steady job markets, plenty of recreation, and a cost of living 15% lower than the national norm.
Moving to Minnesota also offers quality of life, affordability, strong public services, and economic stability. Whether you’re relocating or buying your first home, you can browse listings, compare prices, and make offers online.
Frequently Asked Questions
What is the least expensive place to live in Minnesota?
The cheapest place to live in Minnesota is Fairmont. It offers one of the most affordable utilities in the state, which is 12.8% lower than the national average.
» 10 Cheapest Places to Live in Minnesota: Find out the other cheapest places to live in Minnesota.
What are the living expenses in Minnesota?
The average cost to live in Minnesota is 4.2% than the national average. However, groceries are 3% lower than the national average.
Where is the best place to live in Minnesota?
The best place to live in Minnesota is Hibbing, followed by Albert Lea, Austin, St. Cloud, St. Paul, Marshall, and Rochester.
Where is the best place to retire in Minnesota on a budget?
Hibbing, Austin, and Little Falls are among the best places to retire in Minnesota on a budget. They offer affordable housing, small-town comfort, and easy access to medical care.
Which cities have the cheapest cost of living in Minnesota?
Fairmont (80) and Albert Lea (81) have the cheapest cost of living in Minnesota. Fairmont's cost of living is 15% below the average, while Albert Lea's is 14% lower.
