Flourishing job market, quality education, and excellent climatic conditions have motivated about 44% of people to move to Minnesota. But it’s not that easy for everyone. With a median home price of 340K, Minnesota can be expensive.
Should that stop you from moving to the North Star State? Absolutely NOT!
Cities like Albert Lea and Hibbing offer several budget-friendly options. While Albert Lea offers a cost of living 25.8% lower than the national average, the median home price in Hibbing is $152K.
Whether you’re a retiree or a young professional looking for exciting opportunities, Minnesota has affordable housing for everyone. Let’s explore some of the cheapest places to live in Minnesota!
4 Reasons to live in Minnesota 🦋
- Cheaper Houses: The median home sale price in Minnesota is ~340K. But you can get houses between $168K and $290K in cities like Hibbing, Austin, and St. Paul.
- Tax Benefits: Minnesota provides pre-tax benefits for state employees, allowing them to contribute to eligible expenses through different plans.
- Affordable Healthcare: Healthcare in cities mentioned in this blog is up to 21.7% lower than the national average.
- Cheaper Rentals: The rent prices of these cities are lower than the national average. You can save up to $568 per month in rent.
Cheapest Places to Live in Minnesota in 2024
This list provides insights into the average household income, median listing price, population, unemployment rate, and poverty rate of the cities.
| City | Median Household Income | Median Home Value | Population | Unemployment Rate | Poverty Rate |
|---|---|---|---|---|---|
| Hibbing | $52,881 | $152,335 | 16,052 | 4.8% | 14.2% |
| Albert Lea | $56,347 | $168,894 | 18,396 | 4.4% | 10.8% |
| Fairmont | $56,744 | $163,427 | 10,260 | 2.7% | 13.9% |
| Austin | $61,667 | $177,571 | 26,208 | 2.5% | 14.4% |
| Crookston | $52,557 | $179,023 | 7,323 | 4.9% | 15.3% |
| Worthington | $58,690 | $226,017 | 13,743 | 3.7% | 15.4% |
| Marshall | $60,532 | $232,773 | 13,680 | 2.0% | 16.4% |
| Bemidji | $49,799 | $213,891 | 15,743 | 4.60% | 21.8% |
| Duluth | $63,545 | $275,633 | 87,680 | 4.40% | 17.5% |
| St. Paul | $61,919 | $290,935 | 303,820 | 3.7% | 16.7% |
10 Cheapest Places to Live in MN
The annual population growth of 7.6% since 2010 is reflective of people’s intention to move to Minnesota. If you’re considering shifting to Minnesota, here are some cities that offer affordable living options:
1. Hibbing
| 🟢 Cost of Living Compared to National Average | 15.3%⬇️ |
| 🏡 Median Home Price | $152,335 |
| 💲 Median Rent | $1,006 |
| 🌅 Known For | Hibbing Historical Society Museum |
Hibbing is one of the most affordable places to live in Minnesota. Its median house rent ranges from $700 – $1,750. It also offers affordable healthcare which is 13.7% lower than the national average.
Hibbing is recognized as the “Iron Capital of the World,” and has a strong mining industry. However, recently the median household income saw a 6.3% growth. This indicates an increase in job opportunities and financial stability for the city’s residents. Companies like L&M Radiator and Hibbing Taconite Co. are the two major companies in this city.
» Homes for Sale in Hibbing, MN: Find cheap houses in Minnesota.
2. Albert Lea
| 🟢 Cost of Living Compared to National Average | 25.8%⬇️ |
| 🏡 Median Home Price | $168,894 |
| 💲 Median Rent | $1,000 |
| 🏞️ Known For | State Park |
Albert Lea is one of the most budget-friendly rental destinations in Minnesota with an average home rent ranging from $575 – $2,000. It also offers affordable grocery which is 6% lower than the national average.
Albert Lea is known for providing excellent quality of life and longevity. The city has embraced the Blue Zones Vitality City Project. This project emphasizes factors contributing to well-being, such as healthy living environments and active lifestyles. Moreover, the city has thriving job market with major employers like Streater and Innovance that offers job options.
» Homes for Sale in Albert Lea, MN: Browse thousands of property listings in cheapest place to live in MN.
3. Fairmont
| 🟢 Cost of Living Compared to National Average | 27.6%⬇️ |
| 🏡 Median Home Price | $163,427 |
| 💲 Median Rent | $600 |
| 🏖️ Known For | U.S. Headquarters of Avery Weigh-Tronix |
With rental costs below the national average, Fairmont stands as one of the most affordable cities to live in Minnesota. The house rent price is between $575 – $797. Moreover, the city offers affordable housing costs that are 56.9% lower than the national average.
Fairmont boasts of excellent livability, with residents enjoying a high quality of life. The city ranks 74 out of 100 points due to its low crime rate and advanced educational facilities. Along with lifestyle, the city has diverse job market with top employers like 3M Company and Green Plain. This makes it an appealing location for people looking to move to Minnesota.
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4. Austin
| 🟢 Cost of Living Compared to National Average | 23.7%⬇️ |
| 🏡 Median Home Price | $177,571 |
| 💲 Median Rent | $850 |
| 🏖️ Known For | Hormel’s Corporate Headquarters |
Austin offers budget-friendly living with a median rent that is $605 lower than the national median. With utility costs being 3.9% lower than the national average, the city stands out as one of the most inexpensive places to live in Minnesota.
Austin’s affordable food, health, housing, and transportation facilities make the city one of the cheapest places to live in America. Moreover, Austin boasts a diverse job market with some top employers. It includes Hormel Foods, a global food processing company, and SPAM Museum, a popular tourist attraction.
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5. Crookston
| 🟢 Cost of Living Compared to National Average | 17.2%⬇️ |
| 🏡 Median Home Price | $179,023 |
| 💲 Median Rent | $575 |
| 🎨 Known For | Sugar Beets |
Often referred to as the ‘Rural City,’ Crookston’s cost of living is 14.8% lower than the state average. The utility expenses are 7.3% lower than the national average. It also offers cheapest rent in Minnesota.
Crookston is home to several educational institutes. The University of Minnesota Crookston and Crookston High School provide higher education opportunities. It also contributes to the city’s cultural and academic vibrancy. Beyond affordability, Crookston offers a variety of employment opportunities for agriculture, healthcare, and manufacturing. Top companies like Dee and New Flyer are among those.
» Homes for Sale in Crookston, MN: Find home in one of the cheapest city to live in Minnesota.
6. Worthington
| 🟢 Cost of Living Compared to National Average | 27.6%⬇️ |
| 🏡 Median Home Price | $226,017 |
| 💲 Median Rent | $748 |
| 🏫 Known For | Lake Okabena |
The house rent in Worthington is between $100 – $810. With an average household income of $58,690, you can comfortably live in this city.
Worthington is a compelling real estate choice for outdoor enthusiasts seeking affordable living in Minnesota. The annual cost for housing, food, health care, and other essentials for a single adult in Worthington is $36,438. For job seekers, the city boasts ample of job opportunities with major employers like Nobles Cooperative Electric.
» Homes for Sale in Worthington, MN: Find a home in one of the cheapest places to live in Minnesota.
7. Marshall
| 🟢 Cost of Living Compared to National Average | 24.3%⬇️ |
| 🏡 Median Home Price | $232,773 |
| 💲 Median Rent | $1,180 |
| 🖼️ Known For | Schwan Food Company |
Marshall is indeed one of the best places to live in Minnesota, with a median home price of $232,773. The cost of living is also 22.1% lower than the state average. This makes it one of the most budget-friendly options across the country.
Marshall is renowned for its stunning natural beauty. Beyond its scenic beauty, Marshall boasts economy which thrives on its agricultural roots, with major employers like Schwan’s Company, a national frozen food distributor contributing to the city significantly.
» Homes for Sale in Marshall, MN: Browse cheapest homes in Minnesota.
8. Bemidji
| 🟢 Cost of Living Compared to National Average | 21.3%⬇️ |
| 🏡 Median Home Price | $213,891 |
| 💲 Median Rent | $1,100 |
| 🏰 Known For | Cultural Landmarks |
Bemidji’s cost of living is impressively 21.3% lower than the national average. Residents enjoy affordability without compromising on quality of life. Housing is also very affordable in this city with an average rent of $1,100.
Additionally, the city offers many job opportunities. Johanneson’s Inc and Beltrami Electric are prominent contributors in sustaining the city’s financial health. Whether you’re a student, professional, or retiree, Bemidji provides comfortable living options.
» Homes for Sale in Bemidji, MN: Find homes in cities and towns in Minnesota.
9. Duluth
| 🟢 Cost of Living Compared to National Average | 15.3%⬇️ |
| 🏡 Median Home Price | $275,633 |
| 💲 Median Rent | $1,325 |
| 🏞️ Known For | Harbor-Side Setting |
Duluth’s cost of living is relatively 12.9% lower compared to other Minnesota average. For young adult, the average annual cost of living can cost upto $30,000. The median housing prices in Duluth are 24.4% lower than the US average.
Duluth, also offers a mix of job opportunities across various sectors. Cirrus Aircraft, Granite City Armored Car Inc. and Benedictine Health Center are the top employers in the city.
» Homes for Sale in Duluth, MN: Find houses in cheap cities to live in Minnesota.
10. St. Paul
| 🟢 Cost of Living Compared to National Average | 6%⬇️ |
| 🏡 Median Home Price | $290,935 |
| 💲 Median Rent | $1,350 |
| 🖼️ Known For | Cathedral of Saint Paul |
The cost of living in St. Paul is 6% lower than the national average. This makes it a relatively cheap place to live. Housing costs are a standout feature, being 15% cheaper than the U.S. average. Utilities are also about 6% less pricey in St. Paul compared to other cities.
Additionally, St. Paul, Minnesota, boasts several major employers that contribute to its economic vitality. Companies like Siemens and ACS Group is some of the prominent employers in the city.
» Homes for Sale in St. Paul, MN: Find a home in one of the cheapest places to live in Minnesota.
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Bottom Line
If you want to move to Minnesota, you will find cheap houses for sale in Minnesota under 150K in cities like Hibbing, Albert Lea, and Crookston. They also offer stable job opportunities, and a low cost of living which is more affordable than other Minnesota cities.
Cities like St. Paul and Duluth have a slightly expensive cost of living but provide better job opportunities. You must research the city’s home prices and living costs before relocating.
» Free Home Value Estimator: Get an estimate of property values with Minnesota’s most accurate home value estimator.
Find Homes for Sale in MN Under Your Specific Budget
Here are a few options of cheap houses for sale in MN.
» Best Rental Websites in America: Can’t find your dream home within your budget? Explore thousands of listings on the nation’s top rental websites.
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Research Methodology
We’ve created this list by considering factors such as cost of living, median home price, and rental price range. We have also accounted for the population, median household income, poverty rate, and unemployment rate in these cities.
To compile this list of the cheapest areas to live in Minnesota, we have drawn data from the Economic Research Institute, World Population Review, Rent Cafe, and Zillow, Best Places.
Frequently Asked Questions
Which is the cheapest place to live in Minnesota?
The cheapest place to live in Minnesota is Hibbing. It offers one of the most affordable utilities in the state, which is 12.8% lower than the national average.
» 10 Cheapest Places to Live in Minnesota: Find out the other cheapest places to live in Minnesota!
Is Minnesota cheap to live?
No, it is not. The median home value is $340,047. If you're looking for cities with affordable housing and a low cost of living, you can try your luck in some of these cheapest places in America.
Where is the best place to live in Minnesota?
The best place to live in Minnesota is Hibbing, followed by Albert Lea, Austin, St. Cloud, St. Paul, Marshall, and Rochester.
