Minnesota is an appealing state due to its abundance of natural scenery and vibrant urban hubs. It is often referred to as the “Land of 10,000 Lakes,” but it also has many charming towns and an extensive wilderness. Furthermore, Minnesota is a state of many wonders and has a plethora of activities locals can enjoy, it’s a great time to build a house in Minnesota!
NewHomeSource has found the top 10 most affordable cities in Minnesota to help you in your home search.
1. Albert Lea
Home Price to Income Ratio: 2.04%
Average Property Tax: 1068
Median Household Income: $47,508
The most affordable city in Minnesota is Albert Lea. Commonly referred to as “The Land Between the Lakes,” Albert Lea is located between Fountain Lake and Albert Lea Lake. Thus, there are abundant outdoor activities to participate in such as boating, golfing, fishing, camping, snowmobiling, biking, kayaking, canoeing, and skiing. In the Historic Downtown area of Albert Lea, locals can enjoy a host of shops, restaurants, and events.
Home Price to Income Ratio: 2.71%
Average Property Tax: 1259
Median Household Income: $48,854
The small town of Worthington has a strong agricultural presence. The town is dotted with approximately 30 parks, and fishing is the most popular activity among locals. Furthermore, this Minnesota city has some of the best shopping in the area, with over 30 restaurants, many of which serve ethnic cuisine.
Home Price to Income Ratio: 2.24%
Average Property Tax: 1035
Median Household Income: $48,127
Austin is a city tucked away in the Southern part of Minnesota that has a reputation for being a friendly, welcoming community. Most folks who decide to move to Austin will have no problem making new friends. From hiking at Jay C. Hormel Nature Center to enjoying a concert at Bandshell Community Park, Austin truly has something everyone can enjoy.
Home Price to Income Ratio: 3.15%
Average Property Tax: 1541
Median Household Income: $48,958
Marshall is the ultimate sporting paradise for all outdoor enthusiasts. Folks who choose to live in Marshall can enjoy winter sports, hiking, fishing, camping, hunting, archery, shooting sports, and motorsports. Additionally, there is a lively downtown area where locals can gather with friends and family for dining, shopping, or taking in a sports game.
5. Fergus Falls
Home Price to Income Ratio: 3.04%
Average Property Tax: 1085
Median Household Income: $43,528
There are over 1,000 lakes in Fergus Falls, providing endless opportunities for outdoor activities. DeLagoon Park and Maplewood State Park are two popular spots for locals in Fergus Falls. Additionally, the exciting downtown area offers venues to enjoy the arts, feast on delicious food, and shop till you drop.
Home Price to Income Ratio: 2.58%
Average Property Tax: 1262
Median Household Income: $47,876
Fairmont is a picturesque town packed with recreational activities. Folks who decide to live in Fairmont can go fishing, boating, snowmobiling, and admire the beautiful views of the city’s natural surroundings. Additionally, there are tons of delicious restaurants, unique shopping, and live performances that locals love.
Home Price to Income Ratio: 4.08%
Average Property Tax: 1455
Median Household Income: $32,193
Bemidji is a charming town located in Northwest Minnesota. Folks looking for a city with a variety of outdoor activities will fall in love with Bemidji. Lake Bemidji State Park is a wildly popular spot where locals and tourists can observe animals in their natural habitat, including deer, eagles, and loons. While visiting this state park, you may want to set aside extra time to go kayaking, swimming, biking, and camping.
8. New Ulm
Home Price to Income Ratio: 2.29%
Average Property Tax: 1526
Median Household Income: $61,597
New Ulm is known as the “Most German Town in America.” It has preserved its German heritage from the 1800s while also adopting modern touches. This quaint city has many unique attractions, such as Flandrau State Park, Morgan Creek Vineyards, and the Minnesota Music Hall of Fame. Its German touch makes New Ulm a special place to live.
Home Price to Income Ratio: 3.03%
Average Property Tax: 1735
Median Household Income: $50,702
Faribault is a picturesque town that has an exceedingly relaxed vibe. From hiking to learning about history, and admiring the arts, Faribault has it all. Nature lovers who decide to make Faribault their home must visit River Bend Nature Center. And patrons of the arts must visit Paradise Center for the Arts to enjoy a live show.
Home Price to Income Ratio: 2.10%
Average Property Tax: 1098
Median Household Income: $49,009
Hibbing was once named the iron capital of the world, and its remaining mines give the city a unique landscape. The Laurentian Divide and the Hull Rust Mine are two spectacular outdoor locations for locals to admire.
Cities with the Best Home-Price-to-Income Ratio
While the list above is sorted by the lowest overall cost of living index, the following states have the lowest home price to income ratio, meaning you can get more home for your money.
- Mendota Heights: Mendota Heights is a breathtaking city in Minnesota that has an abundance of shopping and tasty restaurants to appreciate. Additionally, there are many opportunities for outdoor activities located in spectacular landscapes.
- Albert Lea
Drew Port is a writer for NewHomeSource. She writes on the homebuying process, as well as informing readers on homeownership.