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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Dollar for dollar, few states match Minnesota's value. 2 out of 2 cities undercut the national cost index of 112. Leading the pack: Minneapolis at index 101, where median rent of $1,638/month saves renters $3,084/year versus the national median.
Dollar for dollar, few states match Minnesota's value. 2 out of 2 cities undercut the national cost index of 112. Leading the pack: Minneapolis at index 101, where median rent of $1,638/month saves renters $3,084/year versus the national median.
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.
A closer look at Minneapolis: the cost index of 101 breaks down to a Utilities index of 93 (strongest category) and a Healthcare index of 104 (weakest). That's about what we'd expect given the state context. Median rent is $1,638/month — 14% below the national median — while household income sits at $80,269, meaning locals spend about 24% of income on rent. That's a healthy margin by any standard.
Value = income ÷ cost index. The national benchmark ratio is 718. Minneapolis delivers 795 — 11% more purchasing power per dollar earned. This metric catches cities that expensive-but-high-paying rankings miss: a $90K salary in a city with index 80 buys more than $120K in a city with index 150 (and that gap widens if you factor in state taxes).
Now apply that to an actual budget: Across Minnesota, the average cost of living index is 99 — 13 points below the national median. Known for Twin Cities prosperity, outstate thrift, the state offers 2 tracked cities with median rents averaging $1,562/month. That's $333 less than the national average of $1,895. For families with student loans, that cost gap is a second income.
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 (more on that below).
#1 Ranked: Minneapolis — cost index 101, rent $1,638/mo, income $80,269
Minneapolis rent up 4% over the past year
2 of 2 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
425,115 residents · Minnesota
Minneapolis comes in at #1. Rent is $1,638 a month. Household income is $80,269. The cost of living index is 101. That alone makes it worth considering.
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.
| Rank | City | Value Ratio | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Minneapolis | 795 | 101 | $1,638 | Details |
| 2 | St Paul | 753 | 97 | $1,485 | Details |
Value ratio = median household income ÷ cost of living index. A higher ratio means each dollar of income buys more locally. This captures purchasing power better than looking at income or cost alone. 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.
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.