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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Minneapolis rent up 4% over the past year. Rent in #1-ranked Minneapolis has increased from $1,569 to $1,638/mo over the past 12 months — a 4% increase. Rising costs may erode its top ranking over time. That's not something you see often in the data. Solidly above average.
425,115 residents · Minnesota
What does daily life actually cost in Minneapolis? Start with the 24% rent-to-income ratio — that's the kind of margin that lets people build savings. Take it or leave it — the data is what it is. On the category level, Utilities (index 93) is where the real savings show up, while Healthcare (index 104) is the line item most likely to surprise newcomers. Income at $80,269 and homes at $327,043 round out a profile that ranks #1 for clear reasons.
303,820 residents · Minnesota
The #2 spot goes to St Paul, and the breakdown explains why. Renters here pay $1,485/month — saving renters $4,920 per year compared to the national average. Meanwhile, Utilities is the standout at index 89, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 100. At a 24% rent-to-income ratio, there's genuine breathing room in the average household budget.
#1 Ranked: Minneapolis — cost index 101, rent $1,638/mo, income $80,269
Minneapolis rent up 4% over the past year
Retiree-weighted scoring: healthcare index 104, state tax 9.85%, cost index 101 — protecting fixed retirement income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Minneapolis | 101 | $1,638 | Details |
| 2 | St Paul | 97 | $1,485 | Details |
Minneapolis rent up 4% over the past year. Rent in #1-ranked Minneapolis has increased from $1,569 to $1,638/mo over the past 12 months — a 4% increase. Rising costs may erode its top ranking over time. That's not something you see often in the data. Solidly above average.
Retirement planning isn't just about lowest rent — it's about protecting a fixed income from healthcare costs and state taxes. We scored 2 cities in Minnesota on what hits retirees hardest: cost of living, healthcare, and tax burden. Minneapolis leads with index 101, a 9.85% state tax rate, and a healthcare index of 104.
Why Minneapolis ranks #1: the numbers tell a clear story. At 101 on the cost index, residents save roughly 11% less than the typical American. Rent sits at $1,638/month while the median household pulls in $80,269/year. The Utilities category is particularly strong at 93, though Healthcare (104) lags behind. Home prices average $327,043 — $140,327 below the national median.
Before celebrating, check the next metric: The 2 cities we track in Minnesota paint a clearly affordable picture. Average cost index: 99. Median rent: $1,562/month. Household income: $76,662. Minnesota is known for Twin Cities prosperity, outstate thrift — and the data backs that reputation convincingly.
Bottom line: Minneapolis leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
Our persona scoring model weights cost of living, income, rent, healthcare costs, tax burden, and population size differently based on what matters most to retirees. Each factor contributes 10-25 points to a 0-100 composite score. Cities with the highest composite rank first. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Minneapolis ranks #1 in Minnesota for this analysis with a cost index of 101 and median income of $80,269.
Minneapolis scores highest for retirees due to its strong income potential, median rent of $1,638/mo, and competitive median income of $80,269.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Minneapolis (ranked #1) has a cost index of 101 and rent of $1,638/mo, while St Paul (ranked #2) has a cost index of 97 and rent of $1,485/mo — a 4-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Minneapolis is $1,638/month as of 2026, based on Zillow's Observed Rent Index. This is $257 below the national median of $1,895/month.
The median home price in Minneapolis is $327,043, which is 4.1× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
Minnesota has a 9.85% state income tax rate. Combined state and local sales tax averages 7.545%, and the effective property tax rate is 1.02%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.