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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market. We ran the numbers on 2 cities in Minnesota using 2026 census, rent, and salary data. St Paul comes …
#1 Ranked: St Paul — cost index 97, rent $1,485/mo, income $73,055
0 of 2 cities keep rent under 30% of $40K
0 of 2 cities keep rent under 30% of $40K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | St Paul | $1,485 | 45% | 97 | Details |
| 2 | Minneapolis | $1,638 | 49% | 101 | Details |
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market. We ran the numbers on 2 cities in Minnesota using 2026 census, rent, and salary data. St Paul comes out on top — here's the full ranking and analysis.
On a $40K salary, the key number is $1,000/month — that's 30% of gross, the standard affordability line. St Paul ($1,485/mo, 45%), Minneapolis ($1,638/mo, 49%) all clear that bar. After federal tax, FICA (7.65%), and state income tax, estimated take-home ranges from $28,432 to $28,432/year across these top picks.
Dive into St Paul's numbers: cost index 97 (15 points below national average), rent $1,485/month, income $73,055, and a home price of $289,137. Not the most exciting stat, but it matters. The city's cost profile isn't flat — Utilities is the cheapest category at 89, while Healthcare runs 100. With 303,820 residents, it balances mid-size city convenience with manageable costs.
0 of 2 cities keep rent under 30% of $40K. The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market.
Rent in #1-ranked St Paul has increased from $1,443 to $1,485/mo over the past 12 months — a 3% increase. Rising costs may erode its top ranking over time.
303,820 residents · Minnesota
A closer look at St Paul: the cost index of 97 breaks down to a Utilities index of 89 (strongest category) and a Healthcare index of 100 (weakest). Median rent is $1,485/month — 22% below the national median — while household income sits at $73,055, meaning locals spend about 24% of income on rent. That's a healthy margin by any standard.
425,115 residents · Minnesota
Minneapolis earns its position at #2 through a combination that's hard to replicate. The 101 cost index sits 11 points below the national baseline, and the $80,269 — we had to double-check this one — median income means purchasing power here is amplified by the low cost base. Homes list at $327,043 — $140,327 below the national median — a genuine ownership opportunity. On the cost side, Utilities leads the way at 93, while Healthcare trails at 104. Not flashy. Just effective.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1St Paul | 9.85% | 7.545% | 1.02% | $28,432 |
2Minneapolis | 9.85% | 7.545% | 1.02% | $28,432 |
St Paul ranks #1 in Minnesota for this analysis with a cost index of 97 and median income of $73,055.
Yes. On a $40K salary in St Paul, rent would consume about 45% of your gross monthly income. Financial experts recommend keeping rent under 30%. It's tight — consider a roommate or nearby suburb.
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.
St Paul (ranked #1) has a cost index of 97 and rent of $1,485/mo, while Minneapolis (ranked #2) has a cost index of 101 and rent of $1,638/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 St Paul is $1,485/month as of 2026, based on Zillow's Observed Rent Index. This is $410 below the national median of $1,895/month.
After federal taxes, FICA (7.65%), and 9.85% state income tax, estimated take-home on $40K in St Paul is approximately $28,432/year ($2,369/month). After median rent of $1,485/month, you'd have roughly $10,612/year for all other expenses.
The median home price in St Paul is $289,137, which is 4.0× 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.