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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The numbers are clear: 2 of 2 cities in Minnesota beat the national cost-of-living benchmark of 112. And as far as the data shows, minneapolis stands out at 101 on the index, with rent of $1,638/month — a detail that tends to get overlooked — and household income of $80,269. Assembled from 2026 Cen…
| Rank | City | Median Income | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Minneapolis | $80,269 | 101 | $1,638 | Details |
| 2 | St Paul | $73,055 | 97 | $1,485 | Details |
#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
The numbers are clear: 2 of 2 cities in Minnesota beat the national cost-of-living benchmark of 112. And as far as the data shows, minneapolis stands out at 101 on the index, with rent of $1,638/month — a detail that tends to get overlooked — and household income of $80,269. Assembled from 2026 Census, Zillow, and BLS data.
Here's Minneapolis by the numbers — and there's a lot to like (and a little to watch). Cost index: 101. Rent: $1,638/month. Income: $80,269/year. Home price: $327,043. Population: 425,115. The strongest category is Utilities at 93; the most expensive is Healthcare at 104. Translate that rent to annual numbers, and residents are saving renters $3,084 per year vs. the national median. For anyone running the numbers, this is where it clicks.
What to do with this data: use the ranking as a shortlist, then dig into the city profiles for trend lines and category breakdowns. The difference between #1 and #5 is often smaller than the difference between "good on paper" and "actually fits my life." Compare your top picks with our calculator to see real take-home numbers (which, to be fair, is a metric that favors smaller cities).
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Minneapolis | 9.85% | 7.545% | 1.02% | $53,510 |
2St Paul | 9.85% | 7.545% | 1.02% | $53,510 |
425,115 residents · Minnesota
Real talk: the #1 spot goes to Minneapolis, and the breakdown explains why. And on balance, renters here pay $1,638/month — we had to double-check this one — — saving renters $3,084 per year compared to the national average. Meanwhile, Utilities is the standout at index 93, keeping costs manageable. The weak spot? Healthcare at 104. At a 24% rent-to-income ratio, there's genuine breathing room in the average household budget.
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). That's more or less in line with the region. 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.
Cities are ranked by median household income from Census ACS data. We also show cost-adjusted purchasing power (income ÷ cost index) to reveal which high-income cities actually deliver the most real-world spending power. 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.