Loading
Assembling your view…
Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
For retirees on a fixed income, every percentage point matters. Our retiree-weighted model scored 2 cities in Minnesota and Minneapolis (index 101, healthcare 104, state tax 9.85%) takes the top spot.
#1 Ranked: Minneapolis — cost index 101, rent $1,638/mo, income $80,269
Minneapolis rent up 4% over the past year
Retiree-weighted scoring: healthcare index 104, state tax 9.85%, cost index 101 — protecting fixed retirement income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
For retirees on a fixed income, every percentage point matters. Our retiree-weighted model scored 2 cities in Minnesota and Minneapolis (index 101, healthcare 104, state tax 9.85%) takes the top spot.
What does daily life actually cost in Minneapolis? Start with the 24% rent-to-income ratio — that's the kind of margin that lets people build savings. On the category level, Utilities (index 93) is where the real savings show up, while Healthcare (index 104) is the line item most likely to surprise newcomers. Income at $80,269 and homes at $327,043 round out a profile that ranks #1 for clear reasons.
Retirement affordability is about protecting fixed income. Our model weights healthcare costs at 25 points (medical bills are the #1 financial risk in retirement), cost index at 25 points, and state tax burden at 15 points (taxes directly reduce pension and Social Security income). Minneapolis leads with low healthcare costs, a 9.85% state tax rate, and a cost index of 101. St Paul offers competitive healthcare and cost metrics.
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.
What's equally notable: Here's the state-level backdrop: Minnesota averages a 99 cost index, $1,562/mo rent, and $76,662 income across 2 cities. That's $333 less than the national rent average. Twin Cities prosperity, outstate thrift — and that context shapes every city in this ranking.
Rankings quantify the landscape. But the decision to move is personal. Use the spotlights above to zero in on 2-3 finalists, then run your actual salary through the calculator. The question isn't just "where is it cheapest?" — it's "where does my specific income buy the life I want?" Start here. Dig deeper on the linked city pages. Below the radar, but not for long.
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Minneapolis | 101 | $1,638 | Details |
| 2 | St Paul | 97 | $1,485 | Details |
425,115 residents · Minnesota
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). 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.
303,820 residents · Minnesota
Here's St Paul by the numbers — and there's a lot to like (and a little to watch). Cost index: 97. Rent: $1,485/month. Income: $73,055/year. Home price: $289,137. Population: 303,820. The strongest category is Utilities at 89; the most expensive is Healthcare at 100. Translate that rent to annual numbers, and residents are saving renters $4,920 per year vs. the national median. If you've ever felt priced out, the numbers here offer a different path (and that gap widens if you factor in state taxes).
Our persona scoring model weights cost, income, rent, healthcare, taxes, and city size based on what matters most to retirees. Each factor scores 10-25 points out of a 100-point composite. The guide ranks every tracked city in Minnesota by this personalized metric. 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.
Minneapolis scores highest for retirees due to its strong income potential, median rent of $1,638/mo, and competitive 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.