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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. That tracks. 2 out of 2 cities undercut the national cost index of 111. Leading the pack: Minneapolis at index 96, where median rent of $1,638/month saves renters $3,084/year versus the national median.
#1 Ranked: Minneapolis — cost index 96, 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 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
Dollar for dollar, few states match Minnesota's value. That tracks. 2 out of 2 cities undercut the national cost index of 111. Leading the pack: Minneapolis at index 96, where median rent of $1,638/month saves renters $3,084/year versus the national median.
Look, the ranking uses a composite of 2026 data from Census Bureau population/income surveys, Zillow rent and home price indices, BLS salary benchmarks, and Tax Foundation tax rates. Minneapolis (index 96, rent $1,638); St Paul (index 87, rent $1,485). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
Why Minneapolis ranks #1: the numbers tell a clear story. At 96 on the cost index, residents save roughly 15% less than the typical American. Rent sits at $1,638/month while the median household pulls in $80,269/year. The Housing category is particularly strong at 96, though Healthcare (99) lags behind. Home prices average $327,043 — $140,327 below the national median.
You could spend hours on Zillow. Or you could start with this number: 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. Year over year, that savings rate is portfolio-grade.
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 (a figure that keeps climbing, by the way).
| Rank | City | Population | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Minneapolis | 425,115 | 96 | $1,638 | Details |
| 2 | St Paul | 303,820 | 87 | $1,485 | Details |
425,115 residents · Minnesota
A closer look at Minneapolis: the cost index of 96 breaks down to a Housing index of 96 (strongest category) and a Healthcare index of 99 (weakest). And in most cases, 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. There's not much to say about that beyond the obvious. That's a healthy margin by any standard.
303,820 residents · Minnesota
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 (though the trend is moving in the right direction).
Minneapolis ranks #1 in Minnesota for this analysis with a cost index of 96 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 96 and rent of $1,638/mo, while St Paul (ranked #2) has a cost index of 87 and rent of $1,485/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 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.