Minnesota attracts Americans from all over. And there’s a good reason why: Flourishing job market, tax benefits, and quality education. You can’t go wrong with the North Star State!
Although property prices have risen in recent years, the average home value in the top 10 cheapest cities is still only around $200,000. Fairmont’s cost of living is 27.6% lower than the national average, and Worthington is 27.6% more affordable than the rest of the country.
But that’s not all! Retirees can enjoy Bemidji’s friendly community and peaceful environment, with homes averaging a nominal $201K. Meanwhile, Crookston offers a booming job market in education, healthcare, and technology, with median home prices at just $171,048.
Cheapest Places to Live in Minnesota in 2025
Here’s our ranking of the most affordable places to live in Minnesota. We’ve considered the average household income, median list price, median house rent, and the population of the cities.
| City | Median Home Value | Median House Rent | Cost of Living Compared to National Average | Median Household Income | Population |
|---|---|---|---|---|---|
| 1. Hibbing | $144,834 | $925 | 15.3% lower ⬇️ | $55,463 | 15,979 |
| 2. Albert Lea | $160,916 | $995 | 25.8% lower ⬇️ | $62,522 | 18,269 |
| 3. Fairmont | $156,893 | $700 | 27.6% lower ⬇️ | $59,228 | 10,240 |
| 4. Austin | $174,182 | $899 | 23.7% lower ⬇️ | $66,488 | 26,171 |
| 5. Crookston | $171,048 | $728 | 17.2% lower ⬇️ | $54,003 | 7,268 |
| 6. Worthington | $223,845 | $810 | 27.6% lower ⬇️ | $61,840 | 13,614 |
| 7. Marshall | $225,626 | $775 | 24.3% lower ⬇️ | $64,636 | 13,906 |
| 8. Bemidji | $201,214 | $1,200 | 21.3% lower ⬇️ | $53,850 | 15,743 |
| 9. Duluth | $262,257 | $1,775 | 15.3% lower ⬇️ | $66,263 | 87,680 |
| 10. St. Paul | $279,409 | $1,381 | 6% lower ⬇️ | $73,055 | 303,820 |
10 Cheapest Places to Live in Minnesota
Here’s our list of 10 cities that offer affordable living options in the North Star State:
#1 Hibbing
- Median house rent is $925 | Rental prices range between $750 and $3,250.
- Median home value of Hibbing is $144,834.
- Cost of living in Hibbing is 15.3% cheaper than the national average.
- 3 Popular Zips in Hibbing, MN: 55044 | 56560 | 56601
Hibbing is renowned for its rich mining history and is home to the Hull-Rust-Mahoning Open Pit Iron Mine, one of the largest open-pit iron mines. The city offers affordable housing options at 59.3% less than the US median, which makes it ideal for families and professionals. Besides, the city is also the birthplace of music legend Bob Dylan, adding a unique cultural heritage.
» Hibbing Homes for Sale: Find homes in the cheapest city to live in Minnesota.
#2 Albert Lea
- Median house rent is $995 | Rental prices range between $625 and $2,000.
- Median home value of Albert Lea is $160,916.
- Cost of living in Albert Lea is 25.8% cheaper than the national average.
- 3 Popular Zips in Albert Lea, MN: 55044 | 56560 | 56601
Albert Lea offers affordable grocery which is 6% lower than the national average. Albert Lea, located between Fountain Lake and Albert Lea Lake, offers boating and fishing around the lake. The city hosts the annual Freeborn County Fair, providing entertainment and cultural experiences for residents. Moreover, the city has a thriving job market with major employers like Streater and Innovance that offer job options.
» Albert Lea Homes for Sale: Browse thousands of property listings in the cheapest place to live in MN.
#3 Fairmont
- Median house rent is $700 | Rental prices range between $600 and $1,800.
- Median home value of Fairmont is $156,893.
- Cost of living in Fairmont is 27.6% cheaper than the national average.
- 3 Popular Zips in Fairmont, MN: 55044 | 56560 | 56601
Fairmont, often referred to as the “City of Lakes,” boasts five interconnected lakes, providing ample opportunities for water-based recreation. The Fairmont Opera House serves as a cultural hub, hosting various performances and events throughout the year. The city ranks 74 out of 100 points due to its low crime rate and advanced educational facilities, which makes it ideal for professionals and families.
» Fairmont Homes for Sale: Check out properties with the cheapest rent in Minnesota.
#4 Austin
- Median house rent is $899 | Rental prices range between $450 and $1,850.
- Median home value of Austin is $174,182.
- Cost of living in Austin is 23.7% cheaper than the national average.
- 3 Popular Zips in Austin, MN: 55044 | 56560 | 56601
Austin’s economy is heavily influenced by the food processing industry, notably home to Hormel Foods and the SPAM Museum. The city offers quality education through Austin Public Schools and hosts the annual Austin ArtWorks Festival, highlighting local talent. With diverse job opportunities and cultural attractions, Austin is ideal for professionals and young families.
» Austin Homes for Sale: Buy houses in one of the cheapest places in Minnesota to live.
Use a Minnesota Cost of Living Calculator to compare housing, utilities, and transportation costs. Get a detailed cost breakdown across affordable cities for free💲.
#5 Crookston
- Median house rent is $728 | Rental prices range between $580 and $1,020.
- Median home value of Crookston is $171,048.
- Cost of living in Crookston is 17.2% cheaper than the national average.
- 3 Popular Zips in Crookston, MN: 55044 | 56560 | 56601
Crookston’s utility expenses are 7.3% lower than the national average. It is also home to the University of Minnesota Crookston and Crookston High School provides higher education opportunities. The historic downtown features the Grand Theatre and several dining options. Dee and New Flyer are key local employers here for professionals.
» Crookston Homes for Sale: Get affordable homes in one of the cheapest cities in Minnesota.
#6 Worthington
- Median house rent is $810 | Rental prices range between $100 and $810.
- Median home value of Worthington is $223,845.
- Cost of living in Worthington is 27.6% cheaper than the national average.
- 3 Popular Zips in Worthington, MN: 55044 | 56560 | 56601
With an average household income of $61,840, you can comfortably live in Worthington. It is known for its cultural diversity, celebrated annually during the International Festival. For outdoor enthusiasts, Lake Okabena is a spot where you can enjoy recreational activities like fishing and boating.
» Worthington Homes for Sale: Find a home in one of the cheapest places to live in Minnesota.
#7 Marshall
- Median house rent is $775 | Rental prices range between $610 and $1,900.
- Median home value of Marshall is $225,626.
- Cost of living in Marshall is 24.3% cheaper than the national average.
- 3 Popular Zips in Marshall, MN: 55044 | 56560 | 56601
Marshall is home to Southwest Minnesota State University, offering higher education and boosting the local economy. The Schwan Regional Event Center hosts various sports and entertainment events. With quality education from Marshall Public Schools and low crime rates, the city is a safe and suitable place for students, professionals, and families.
» Marshall Homes for Sale: Browse budget-friendly homes in cheapest cities to live in MN.
#8 Bemidji
- Median house rent is $1,200 | Rental prices range between $595 and $2,700.
- Median home value of Bemidji is $201,214.
- Cost of living in Bemidji is 21.3% cheaper than the national average.
- 3 Popular Zips in Bemidji, MN: 55044 | 56560 | 56601
Bemidji’s health expenses are 24% cheaper than the national average, makes it an ideal place for seniors and retirees. Attractions like the iconic statues of Paul Bunyan and Babe the Blue Ox are popular spots for tourists. The city offers numerous parks and trails, including Lake Bemidji State Park, ideal for outdoor enthusiasts. These combined factors make Bemidji an ideal place for retirees and families.
» Bemidji Homes for Sale: Find homes in affordable cities in Minnesota.
#9 Duluth
- Median house rent is $1,775 | Rental prices range between $550 and $6,500.
- Median home value of Duluth is $262,257.
- Cost of living in Duluth is 15.3% cheaper than the national average.
- 3 Popular Zips in Duluth, MN: 55044 | 56560 | 56601
Duluth’s housing costs are 24.4% lower than the US average. It is located near Lake Superior and is renowned for its scenic beauty. The city offers various attractions, including the Great Lakes Aquarium and Canal Park for family outings. Besides, Duluth Public Schools and the University of Minnesota Duluth cater to educational needs, which makes this place ideal for students and families.
» Duluth Homes for Sale: Browse through affordable homes in MN.
#10 St. Paul
- Median house rent is $1,381 | Rental prices range between $475 and $99,999.
- Median home value of St. Paul is $279,409.
- Cost of living in St. Paul is 6% cheaper than the national average.
- 3 Popular Zips in St. Paul, MN: 55044 | 56560 | 56601
Housing costs in St. Paul are 15% cheaper than the US average. Compared to other cities, utilities are also about 6% less pricey in St. Paul. As the capital city of Minnesota, St. Paul boasts numerous historical sites, including the Minnesota History Center. The city hosts the annual Minnesota State Fair, attracting visitors statewide. Companies like Siemens and ACS Group is some of the prominent employers in the city.
» St. Paul Homes for Sale: Search homes in one of the cheapest cities to live in Minnesota.
So, Where Is the Cheapest Place to Live in Minnesota?
You will find cheap houses for sale in Minnesota under 150K in cities like Hibbing, Albert Lea, and Crookston. They offer stable job opportunities, and the cost of living is more affordable than other Minnesota cities.
Cities like St. Paul and Duluth are slightly expensive but provide better job opportunities. You must research the home prices and living costs. Also, getting a mortgage pre-approval helps you stand out in the competition before buying a house in Minnesota.
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» 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 for Cheapest Places to Live in Minnesota
To rank the top cities in Minnesota, we analyzed all the regions, evaluating them based on specific criteria. Below is a breakdown of the factors used and the sources of information that informed our rankings.
- Population: World Population Review [1]
- Median Home Price: Zillow [2]
- Median Rent: Zillow [3]
- Cost of Living: Rent Cafe [4]
Frequently Asked Questions
What is the least expensive 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 it expensive to live in Minnesota?
No, it is not. The median home value is $330,487. 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.
Which Minnesota city has the lowest cost of living?
Fairmont has the lowest cost of living, which is 27.6% and 25.5% lower than the national and state average, respectively.
