| Index | Rochester | Minnesota | National |
| Cost of living | 106 | 100 | 100 |
| Groceries | 100 | 100 | 100 |
| Health care | 99 | 100 | 100 |
| Housing | 116 | 100 | 100 |
| Transportation | 102 | 100 | 100 |
| Utilities | 108 | 104 | 100 |
| Lifestyle & Entertainment | 96 | 100 | 100 |
| Household Items | 100 | 100 | 100 |
| Education & Childcare | 102 | 99 | 100 |
Understanding the cost of living in Rochester can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Rochester cost of living index is 106, which is 6% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.
The cost of living in Rochester is about average when compared to all other cities across the nation. You can expect that everyday items like food, household expenses and utility bills will be no more expensive than any other average city. Residents can anticipate living expenses that remain in line with the national average, ensuring a manageable financial burden, making it an attractive choice for those seeking affordability without the constraints of higher everyday expenditures.
Nobody knows their city better than the people who actually live there. So, we asked 8 local residents how they would rate the cost of living in Rochester and this is how they responded. 25% of people said that the cost of living was affordable, with prices decreasing, while 75% of people said that the cost of living was very expensive and prices continue to rise.
Is Rochester affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Rochester, for instance, where the median home price falls 19.7% higher than the national average, and monthly rent rates are 7.3% higher than usual. Additionally, median income levels contribute to the equation, with Rochester flaunting a median household income of $111,580, 37.2% higher than the national norm.
Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.
Transportation: In situations where public transportation is limited or nonexistent, local residents may be required to own and maintain their own vehicles, contributing to an elevated cost of living. Monthly expenditures may encompass fuel costs, insurance premiums, routine vehicle upkeep and possibly lease or financing payments. In Rochester, the transportation index is 2.4% higher than the national average.
Groceries: Grocery costs have continued to increase significantly over the last 2-3 years. In some markets the cost of food has gone up by more than 20% in that period. While other markets have managed to see only a moderate uptick. These food costs can have a major impact on the cost of living in any area. In Rochester, the groceries index is 0.3% higher than the national average.
The Rochester cost of living data displayed above uses a U.S. average baseline of 100 to provide a practical way to compare living expenses across cities. Housing estimates incorporate U.S. Census home price and rental data, while all other values are generated using AI-assisted models based on everyday expense expectations, regional pricing trends, climate, transportation patterns, and local economic conditions. These values are designed for directional city-to-city comparisons.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
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| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $142,622 | $11,885 | $3,328 | $4,279 |
| Renters | $63,345 | $5,279 | $1,478 | $1,901 |
| State | General Sales Tax | With Max Surtax |
| Minnesota | 6.875% | 7.875% |
| State | Income Tax (Low) | Income Tax (High) |
| Minnesota | 5.35% | 9.85% |
| City | Population | Cost of Living Index | National Avg. |
| Hammond, MN | 112 | 91 | 8.6% |
| Elgin, MN | 1,214 | 96 | 3.7% |
| Chatfield, MN | 2,746 | 98 | 1.9% |
| Eyota, MN | 2,259 | 99 | 1.1% |
| Mantorville, MN | 985 | 100 | 0.3% |
| Rochester, MN | 121,687 | 106 | 5.5% |
| City | Population | Cost of Living Index | National Avg. |
| Evansville, IN | 121,758 | 87 | 13.4% |
| Cambridge, MA | 121,456 | 205 | 104.5% |
| Richardson, TX | 121,339 | 117 | 17.1% |
| Lansing, MI | 122,139 | 87 | 12.7% |
| Fairfield, CA | 121,000 | 151 | 50.7% |
| Rochester, MN | 121,687 | 106 | 5.5% |
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