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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Now, the part that complicates the narrative: The 2 cities we track in Minnesota paint a clearly affordable picture. Average cost index: 92. Median rent: $1,562/month — for better or worse — . Household income: $76,662. Minnesota is known for Twin Cities prosperity, outstate thrift — and the data ba…
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | St Paul | 87 | $1,485 | Details |
| 2 | Minneapolis | 96 | $1,638 | Details |
#1 Ranked: St Paul — cost index 87, rent $1,485/mo, income $73,055
St Paul rent up 3% over the past year
2 of 2 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
Now, the part that complicates the narrative: The 2 cities we track in Minnesota paint a clearly affordable picture. Average cost index: 92. Median rent: $1,562/month — for better or worse — . Household income: $76,662. Minnesota is known for Twin Cities prosperity, outstate thrift — and the data backs that reputation convincingly (and that gap widens if you factor in state taxes).
The numbers are clear: 2 of 2 cities in Minnesota beat the national cost-of-living benchmark of 111. St Paul stands out at 87 on the index, with rent of $1,485/month and household income of $73,055. Assembled from 2026 Census, Zillow, and BLS data.
Here's one for the spreadsheet lovers: St Paul rent up 3% over the past year. 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.
Dive into St Paul's numbers: cost index 87 (24 points below national average), rent $1,485/month, income $73,055, and a home price of $289,137. The city's cost profile isn't flat — Housing is the cheapest category at 87, while Healthcare runs 97. With 303,820 residents, it balances mid-size city convenience with manageable costs.
Rent data is sourced from Zillow's Observed Rent Index (ZORI), which tracks the median rent across all active listings — not just new leases. And on balance, this gives a more representative and stable signal than asking prices alone. St Paul: $1,485/mo, Minneapolis: $1,638/mo. The cheapest city here is $410 under the national median — that's $4,920/year in savings on rent alone (that's pre-tax, of course).
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.
303,820 residents · Minnesota
The #1 spot goes to St Paul, and the breakdown explains why. Renters here pay $1,485/month — we had to double-check this one — — saving renters $4,920 per year compared to the national average. Meanwhile, Housing is the standout at index 87, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 97. At a 24% rent-to-income ratio, there's genuine breathing room in the average household budget.
425,115 residents · Minnesota
Here's Minneapolis by the numbers — and there's a lot to like (and a little to watch). Cost index: 96. Rent: $1,638/month. Income: $80,269/year. Home price: $327,043. Population: 425,115. The strongest category is Housing at 96; the most expensive is Healthcare at 99. Translate that rent to annual numbers, and residents are saving renters $3,084 per year vs. the national median. For freelancers and gig workers with variable income, this cushion is everything.
Rent is the single largest expense for most households. We rank all tracked cities in Minnesota by median 1-bedroom rent (Zillow ZORI) from lowest to highest, filtering out any cities with incomplete data. 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.
St Paul ranks #1 in Minnesota for this analysis with a cost index of 87 and median income of $73,055.
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 87 and rent of $1,485/mo, while Minneapolis (ranked #2) has a cost index of 96 and rent of $1,638/mo — a 9-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.
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.