Cheapest Places to Live in Minnesota

Access hyperlocal data to help you make a confident and informed decision.

Minnesota, known for its scenic landscapes, vibrant cities, and high quality of life, offers a range of living experiences. Landmarks such as the Mall of America, the Boundary Waters Canoe Area, and the Minneapolis Sculpture Garden highlight the state's attractions. The state's economy is diverse and robust, driven by sectors such as healthcare, technology, and manufacturing. Minnesota's tax structure includes relatively high income and property taxes, which can impact the overall affordability for residents. Despite recent inflation and rising food costs, Minnesota remains one of the more affordable states in the Midwest, especially in its smaller towns and rural areas. The combination of a diverse economy and manageable living costs makes Minnesota an attractive place for those seeking affordability and quality of life.

Affordable living in Minnesota can often be found in smaller towns and suburban areas where housing costs and everyday expenses are lower. These regions provide a more manageable cost of living, which is essential for maintaining financial stability. Affordability is a key factor in livability, as it allows residents to enjoy a comfortable standard of living without undue financial strain. Factors contributing to the cheapest places to live in Minnesota include lower housing demand in less populated areas, supportive local economic policies, and efficient public services. Using AI-assisted city-level cost of living estimates, supported by U.S. Census housing data and regional economic modeling, helps identify these affordable regions and gives potential residents a practical way to compare affordability from one city to the next. In a state known for its community spirit and economic opportunities, finding affordable living options enhances the overall living experience.

Chisholm Population: 5,025 15% cheaper than Minnesota average

Med. Home Value: $146,609 Med. Rent: $922 Med. Household Inc.: $61,575

With a cost of living index that is 15% cheaper than the state average, Chisholm is the cheapest place to live in Minnesota. This area offers residents a remarkable blend of relatively low housing costs, budget-friendly grocery prices, affordable utilities, and economical health care services, making it an attractive destination for those seeking to stretch their dollars further. Whether you're a young professional, a growing family, or someone looking to enjoy a more relaxed pace of life, Chisholm provides an inviting and cost-effective environment to call home.

Virginia Population: 8,634 13% cheaper than Minnesota average

Med. Home Value: $167,815 Med. Rent: $963 Med. Household Inc.: $61,675

The second most affordable city in Minnesota is Virginia and stands out for its cost-effective lifestyle. With an overall cost of living that is 13% cheaper than the Minnesota average, overall goods and services, housing, utilities, transportation and health care costs fall within a reasonable range. Median household income levels are steady and come in at , which helps to increase the purchasing power of the local residents.

Montevideo Population: 5,198 12% cheaper than Minnesota average

Med. Home Value: $185,384 Med. Rent: $969 Med. Household Inc.: $77,168

Montevideo lands in the #3 spot for the cheapest cities to live in Minnesota, with a cost of living that is 12% cheaper than the state average. With home prices averaging and rental rates coming in around , it helps that household income levels average about , which assists with paying the mortgage or your monthly rent. Its robust public school system and accessible health care further enhance its appeal, making it a great place to settle down. The strong community spirit and ample recreational opportunities add to its charm.

Hibbing Population: 16,417 11% cheaper than Minnesota average

Med. Home Value: $199,639 Med. Rent: $879 Med. Household Inc.: $69,782

The cost of everyday grocery items, goods & services and of course housing, can have a significant impact on the overall cost of living in any area. Hibbing offers a picturesque and affordable living environment, with a cost of living that is 11% cheaper than the state average. Everyday items like ground beef , eggs , coffee and pizza are all fairly reasonable compared to most other cities, which helps reduce those grocery bills. Home prices are also fairly affordable (compared to the state average), coming in at around .

International Falls Population: 6,015 11% cheaper than Minnesota average

Med. Home Value: $187,358 Med. Rent: $1,025 Med. Household Inc.: $70,780

For those wanting to live well on a budget, International Falls is ideal, with a cost of living that is 11% cheaper than the state average. Reasonable housing prices (compared to the Minnesota average) of and rental prices of are paired with economical goods and services and a range of free or low-cost recreational activities. The city's proactive economic development initiatives also ensure a steady stream of job opportunities, making it a smart choice for those prioritizing financial ease.

Albert Lea Population: 18,460 11% cheaper than Minnesota average

Med. Home Value: $185,653 Med. Rent: $1,087 Med. Household Inc.: $69,176

Albert Lea comes in at #6 on our list of the cheapest cities in Minnesota and is a haven for those seeking affordability without sacrificing convenience. The city is known for its discount shopping centers and budget-friendly dining options and has a cost of living that is 11% cheaper than Minnesota. The city's local markets provide fresh produce and other groceries at reduced prices, while parks and community centers offer free entertainment and leisure. This city is perfect for enjoying a high quality of life at a low cost.

Worthington Population: 13,520 11% cheaper than Minnesota average

Med. Home Value: $228,105 Med. Rent: $1,201 Med. Household Inc.: $73,355

With its cost-effective lifestyle, Worthington is an attractive destination for those looking to live affordably. The city boasts suitable housing costs, affordable healthcare, and a variety of budget-friendly dining options. The community is welcoming and vibrant, providing residents with a rich social life at a fraction of the cost. Median income levels come in at , which provides financial stability, purchasing power and increases the quality of life in the city.

Redwood Falls Population: 5,141 9% cheaper than Minnesota average

Med. Home Value: $222,093 Med. Rent: $1,088 Med. Household Inc.: $78,947

A lower cost of living allows individuals to manage their expenses more effectively, reducing the risk of financial stress and debt. When essential costs such as housing, food, transportation, and healthcare are more affordable, people can achieve greater financial stability and resilience. Redwood Falls fits that mold and has a cost of living that is 9% cheaper than Minnesota.

Austin Population: 26,125 9% cheaper than Minnesota average

Med. Home Value: $203,597 Med. Rent: $1,208 Med. Household Inc.: $72,312

Lower living costs can lead to a higher quality of life by making it easier for people to afford comfortable housing, nutritious food, and access to healthcare. It can also provide opportunities for better education, recreational activities, and community engagement, contributing to overall well-being. Austin is one of the most affordable cities in Minnesota, and has a cost of living that is 9% cheaper than the state average.

Crookston Population: 7,907 9% cheaper than Minnesota average

Med. Home Value: $250,289 Med. Rent: $998 Med. Household Inc.: $74,533

With a cost of living that is 9% cheaper than Minnesota, Crookston comes in at #10 on our list of the cheapest places to live in Minnesota. Financial stress is a significant factor affecting mental and physical health. By lowering the cost of living, individuals can experience reduced anxiety related to meeting monthly expenses, thereby improving overall health and well-being. The ability to afford basic necessities without constant worry contributes to a more balanced and fulfilling life.

Full list of the cheapest places in Minnesota

Rank	Location	Population	COL Index	Med. Home Value	Med. Household Inc.
1	Chisholm	5,025	86	$146,609	$61,575
2	Virginia	8,634	87	$167,815	$61,675
3	Montevideo	5,198	88	$185,384	$77,168
4	Hibbing	16,417	89	$199,639	$69,782
5	International Falls	6,015	89	$187,358	$70,780
6	Albert Lea	18,460	89	$185,653	$69,176
7	Worthington	13,520	90	$228,105	$73,355
8	Redwood Falls	5,141	91	$222,093	$78,947
9	Austin	26,125	91	$203,597	$72,312
10	Crookston	7,907	91	$250,289	$74,533
11	Brainerd	13,746	92	$227,993	$55,121
12	Fairmont	10,438	92	$241,017	$73,175
13	Marshall	14,075	92	$284,673	$72,722
14	Thief River Falls	9,032	92	$252,560	$77,245
15	Fergus Falls	14,278	93	$250,138	$62,922
16	Waseca	9,195	93	$240,475	$75,747
17	Willmar	20,156	93	$248,836	$75,861
18	Hutchinson	14,331	93	$278,233	$82,822
19	Winona	27,459	94	$280,438	$73,011
20	Little Falls	9,000	94	$264,023	$58,955
21	New Ulm	13,686	94	$261,248	$89,385
22	Bemidji	15,682	95	$252,522	$54,650
23	Litchfield	6,894	95	$274,503	$76,941
24	Grand Rapids	11,472	95	$274,762	$72,981
25	Glencoe	5,684	95	$297,999	$91,642
26	St. Cloud	69,805	96	$283,361	$75,349
27	Cloquet	12,471	97	$280,093	$79,738
28	Morris	5,519	97	$301,160	$87,948
29	Waite Park	7,879	97	$287,477	$66,269
30	Owatonna	26,702	98	$306,387	$97,617
31	Faribault	24,714	98	$300,435	$81,911
32	Duluth	87,821	98	$301,753	$81,452
33	St. Joseph	7,722	98	$305,100	$101,626
34	Alexandria	14,194	98	$327,079	$81,276
35	Sauk Rapids	14,365	99	$321,709	$80,331
36	Red Wing	16,808	99	$329,330	$86,170
37	St. Peter	12,333	99	$315,229	$82,721
38	La Crescent	5,277	99	$332,893	$87,815
39	Lake City	5,226	99	$313,356	$90,615
40	East Grand Forks	8,756	100	$373,344	$86,180
41	Cambridge	9,290	100	$306,138	$86,119
42	Detroit Lakes	9,567	100	$345,925	$77,770
43	Kasson	6,620	100	$355,228	$118,532
44	Mankato	43,578	101	$341,528	$78,663
45	St. Paul Park	5,562	101	$361,329	$124,354
46	Becker	5,061	101	$365,284	$114,616
47	Stewartville	6,255	101	$347,658	$118,727
48	Moorhead	44,762	101	$354,768	$92,904
49	Brooklyn Center	31,682	102	$332,520	$96,266
50	North Mankato	14,344	102	$368,141	$106,059

Methodology

To formulate the list of the cheapest places to live in Minnesota, a city-level cost of living model was used with a national average baseline of 100. This framework is designed to provide a practical comparison of how far your dollar may go across different urban areas. Housing estimates incorporate the latest available U.S. Census home price and rental data, while all other values are generated using AI-assisted economic models based on expected everyday expenses, regional pricing trends, climate, transportation patterns, and local economic conditions. The overall index is weighted across key spending categories, including housing (30%), groceries (16%), transportation (12%), healthcare (10%), utilities (8%), lifestyle and entertainment (8%), household expenses (8%), and education and childcare (8%).

Map of Cost of Living by State

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The map above is a great way to help you discover the most affordable states across the U.S. By highlighting states with the lowest cost of living, this map provides an in-depth look at where you can get the most value for your money. By visually representing this data, the map allows users to easily compare different regions and make informed decisions about potential relocations or investments. Additionally, it provides valuable insights into the economic conditions and lifestyle factors that influence these cost of living statistics. Whether you're planning a move, considering a new job, or simply curious about the economic landscape, this map is a useful resource for understanding and navigating the financial implications of living in different states.