The 10 Cheapest Places To Live In Minnesota In 2026

The 10 Cheapest Places To Live In Minnesota For 2026

Virginia is a city in Saint Louis County, Minnesota, United States, on the Mesabi Iron Range. The population was 8,712 at the 2010 census. According to a water tower in the middle of town, the city’s nickname is the “Queen City”, or “Queen City of the North”.

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If you’re trying to live the high life without breaking the bank, there’s probably nowhere better in Minnesota than Hibbing, the second most affordable city overall statewide. Renters can rejoice at Hibbing’s super low median rent of $833/month, the lowest price you’ll see on this list. But what really moves Hibbing to the top spot is the affordability of its houses. With residents earning a median income of $55,789 and paying a median home price of $154,907, Hibbing is firmly in the top ten in Minnesota for home price to income ratio.

To learn a little more about the root of the riches that helped make Hibbing the affordable city it is today, definitely check out the Hull Rust Mine, one of the largest open-pit mines in the world. Admission is free, in keeping with the cheap theme.

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Albert Lea, situated in the southern part of Minnesota, shines as the third most affordable city thanks to its reasonable housing costs, where it ranks 6.0 in home values, and a favorable 2.71 ratio. The city’s economic stability is evident through its placement in the 4th quartile for income levels and a modest 5.71%, ensuring that living expenses are well within reach for its residents. Albert Lea leverages its location at the crossroads of Interstates 35 and 90, offering both affordability and a high quality of life in MN.

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It’s definitely worth the savings to consider moving to Worthington in southwestern Minnesota. The city’s cost of living is 11.9% cheaper than the Minnesota average, making it an economical enclave.

According to Zillow data, the city’s housing market is affordable, with a median home value of $240,254. You can use that money you save on housing to add bacon to your next Jucy Lucy.

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You’d have a tough time believing you’re living in one of the most expensive states in America when you’re in Montevideo. Homes in Montevideo are the 12th cheapest in Minnesota, with a median price tag of $210,237. With residents earning a median income of $68,596, they pay the 12th smallest proportion of their income toward homes of anywhere in the state. Rent is also quite cheap in Montevideo, but it’s still more economical to buy.

Montevideo is located in the western part of the state, where the Minnesota and Chippewa Rivers converge.

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Located in the south-central part of the state, Redwood Falls ranks as the sixth most affordable city in Minnesota. Redwood Falls has the fourth cheapest homes in the state, with a median price tag of $167,807. Coupled with a median income of $61,750, Redwood Falls has the fifth lowest home price to income ratio in Minnesota. If you stick to free activities like hiking at Alexander Ramsey Park, you’ll have even more money left in your wallet at the end of every week.

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Located on the border of Canada, International Falls goes by the nickname “Icebox of the Nation.” But if you can withstand the bitter cold, International Falls has some sweet deals for you. The second least expensive homes in Minnesota are in International Falls, where the median home price is $153,166. With residents earning a median income of $57,662, International Falls has one of the best home price to income ratios in the state.

As a budgeting bonus, admission to Smokey Bear Park is totally free. Just don’t get spooked by the 26-foot bear when you drive in.

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Fergus Falls is a city in and the county seat of Otter Tail County, Minnesota, United States. The population was 13,138 at the 2010 census.

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Hutchinson is the largest city in McLeod County, Minnesota, United States, along the South Fork of the Crow River. The population was 14,178 at the 2010 census.

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You don’t need to be a crook to have all the money you need in Crookston, the tenth most inexpensive city in Minnesota. The median home price in Crookston is $183,131 and the median income is $57,315, so paying off the mortgage in Crookston happens in no time flat. With a median rent of $848, Crookston isn’t as affordable for renters, when looked at as a proportion of income.

Crookston is in the northwestern part of the state, a half hour southeast of Grand Forks, North Dakota.

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Cheapest places to live in Minnesota FAQs

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The county in Minnesota with the lowest cost of living is Faribault County. The average living wage in Faribault County is $83,518 according to MIT data. Faribault County has the lowest cost of living because it has relatively less expensive childcare and housing costs compared to Minnesota as a whole. Childcare costs $12,417 a year in Faribault County for two children compared to the Minnesota average of $17,401. Housing costs, defined as a blend of the average rent and average mortgage payment, are $8,808 per year in Faribault County compared to $13,400 on average in Minnesota.

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The cost of living in Minnesota is 5.2% higher than the US average. According to MIT, the required living wage for a family of four with two working parents in Minnesota is $94,430 vs the national average for a family of four with two working parents of $89,744. The median income of a Minnesota household is $73,382.

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The cheapest housing market in Minnesota is Virginia. The average home value in Virginia is $90,800, the lowest in the state. The average home value in Minnesota is $235,700, almost 2.6 times higher than Virginia.

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Methodology: How we determined the most affordable places to live in the North Star State for 2026

Determining affordability for places in Minnesota boils down to how much it costs to live here.

You need to understand your costs relative to what people in the rest of the state are paying.

With that logic in mind, we derived several cost of living statistics from the latest Census American Community Survey 2020-2024 for Minnesota using Saturday Night Science. We indexed the cost of living statistics across the following categories:

• Housing
• Transportation
• Services
• Groceries
• Healthcare
• Utilities

These are then weighted together to produce an overall cost of living index where 100 is the United States average. Anything below 100 is relatively affordable. Anything over 100 is relatively expensive.

We applied the biggest weight to housing as it typically accounts for 25% or more of your budget. Additionally, housing costs are the highest variant cost across a state. We then compare these cost of living metrics for each place in Minnesota to figure out which is the least expensive.

The “Cost of Living Index” allows you to rank all of the 151 places in Minnesota that have more than 5,000 people from least expensive to most expensive. Any ties went to the larger city.

The place in Minnesota with the lowest cost of living according to the data is Virginia.

We updated this article for 2026. This report reflects our eleventh time ranking the cheapest places to live in Minnesota.