Best Affordable Places to Live in Minnesota in 2025
Best Affordable Places to Live in Minnesota in 2025
(Last Updated – 03/2025)
Nestled just shy of Canada and just about smack-dab between the east and west coasts, Minnesota offers its residents a plethora of benefits — and to-dos that range from summertime urban adventures to ice fishing.
The Land of 10,000 Lakes is a relatively affordable state to live in, to boot. It currently ranks 23th in MERIC’s Cost of Living analysis, with an overall cost of living of 95.1%. A score of 100% is the national average, and a lower number indicates that Minnesota is a little more affordable.
Minnesota offers both bustling cities and plenty of smaller towns to choose from, including lake- and riverside gems. Here, learn about some of the best spots in the North Star State, no matter what your needs.
Best Places to Live in Minnesota
From busy city streets to the laid-back attitude of smaller towns with tightly knit communities, Minnesota’s best places to live run the gamut — and are spread all across the state. Below, we’ve listed options based on different needs and stages of life, separating out the best Minnesota cities for families from those for young adults and retirees.
We’ve also included information on housing affordability for each spot, since shelter is usually the biggest budget line item. If you’re a first-time homebuyer or looking for help with the mortgage preapproval process, you might benefit from visiting an online Home Loan Help Center for more information.
💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.
Best Affordable Places to Live in Minnesota
Here are our top picks for the most affordable and attractive spots to land in Minnesota.
1. Mankato
Photo credit: iStock/Jacob Boomsma
A charming mid-sized city spanning three counties and located just 90 minutes southwest of Minneapolis, Mankato has a lot going for it — in addition to a cost of living about 11% lower than the American average. Outdoorsy adventurers will enjoy excursions to Minneopa Falls and the Mount Kato ski bowl, while historic homes, parks, breweries, and more mean there’s never a shortage of things to do in town.
Population: 45,742
Median Household Income: $64,826
Cost of Living: 89% of U.S. average
Average Rent Price: $1,595
Home Price-to-Income Ratio: 4.47
2. St. Paul
Photo credit: iStock/Davel5957
The (slightly) smaller twin of Minnesota’s Twin Cities, not to mention the state’s capital, St. Paul beckons for a variety of reasons — not least of which are its affordable housing and bustling downtown. Residents can enjoy easy access to the Science Museum of Minnesota and the Como Park Zoo, as well as diverse neighborhoods speckled with character-filled historic architecture.
Thinking of buying a property? It can be helpful to research which type of mortgage loan will suit you best.
Population: 303,820
Median Household Income: $73,055
Cost of Living: 99% of U.S. average
Average Rent Price: $1,350
Home Price-to-Income Ratio: 3.81
3. Minneapolis
Photo credit: iStock/Aerial_Views
The largest city in Minnesota, Minneapolis is a metropolis that boasts plenty of job opportunities across fields ranging from health care to finance to manufacturing. Plus, as home to the University of Minnesota, the city provides ample educational opportunities for anyone looking to brush up on their skills or get a new start. The presence of the college also brings plenty of art and culture through the city, and the international airport here serves as a portal to the rest of the world.
Population: 425,115
Median Household Income: $80,269
Cost of Living: 101% of U.S. average
Average Rent Price: $1,550
Home Price-to-Income Ratio: 3.89
Best Places to Live in Minnesota for Families
Having kids changes everything — including the best places to live. Here are our top Minnesota spots for families, taking into account things for kids to do, factors that parents care about, and, of course, affordability.
1. Maple Grove
Photo credit: iStock/Jacob Boomsma
Families may appreciate that Maple Grove has well-regarded public schools, in particular those in the Wayzata Public School District. Beyond that, the suburb is within easy reach of Minneapolis and all its many to-dos, as well as outdoorsy adventures outside the city.
Population: 71,288
Median Household Income: $129,481
Cost of Living: 99% of U.S. average
Average Rent Price: $2,395
Home Price-to-Income Ratio: 3.13
2. Eagan
Photo credit: iStock/Jacob Boomsma
Another Minneapolis suburb located on the other side of town, Eagan ranks high on our list. Families may be drawn to the solid public schools, as well as the fact that it has plenty of playgrounds and outdoor recreation options suited for children.
With affordable home values, there’s opportunity for would-be homeowners, no jumbo mortgage needed.
Population: 67,396
Median Household Income: $107,486
Cost of Living: 99% of U.S. average
Average Rent Price: $1,700
Home Price-to-Income Ratio: 3.60
3. Duluth
Photo credit: iStock/Aneese
For parents who believe life is better on the lake, Duluth offers ample opportunities to raise a family in an affordable setting. A mid-sized city tucked close to other communities, Duluth has lots of opportunities for kids and adults alike, including educational yet fun attractions like the Great Lakes Aquarium and Glensheen Mansion. The yearly Duluth Airshow will keep little engineers gazing upwards, while job opportunities in health care, education, and hospitality will keep parents gainfully busy.
Population: 87,680
Median Household Income: $66,263
Cost of Living: 95% of U.S. average
Median Rent Price: $1,635
Home Price-to-Income Ratio: 3.90
Best Places to Live in Minnesota for Young Adults
For 20- and 30-somethings looking to mix, mingle, and find upward career mobility, there are many affordable options in Minnesota to choose from. Here are our picks.
1. St. Paul
Photo credit: iStock/Davel5957
All of the action of Minneapolis at a more affordable price tag — and meanwhile, the two towns are only 20 minutes apart, which means young adults who move to St. Paul get double the career and dating opportunities. No wonder the city’s median age is under 35.
If you’re thinking of putting down roots and buying a home, it can be wise to learn the differences between mortgage prequalification and preapproval so you’re ready to bid.
Population: 303,820
Median Household Income: $73,055
Cost of Living: 99% of U.S. average
Average Rent Price: $1,320
Home Price-to-Income Ratio: 4.5
2. Duluth
Photo credit: iStock/Aneese
For young adults seeking the coziness of a mid-sized town, Duluth is a draw for its twin attractions of scenic surroundings and low cost of living. Plus, its median age is currently 37, and many of its households are singletons. What better place to take a date than the Lake Superior waterfront?
Population: 87,680
Median Household Income: $66,263
Cost of Living: 95% of U.S. average
Median Rent Price: $1,635
Home Price-to-Income Ratio: 3.90
3. Rochester
Photo credit: iStock/Davel5957
Rochester offers opportunities for single young adults despite its size — and for those in health care, ample career opportunities as the birthplace of the renowned Mayo Clinic. Retail and business are other growing sectors, and residents say they enjoy how close everything is, making for short commutes. Community events (music, art shows) round out Rochester’s appeal
Population: 122,413
Median Household Income: $87,767
Cost of Living: 101% of U.S. average
Average Rent Price: $1,491
Home Price-to-Income Ratio: 3.63
Best Places to Live in Minnesota for Retirees
For those ready to settle into their golden years, Minnesota offers close friendships, fun to-dos, quality healthcare, and plenty of beauty. Here’s where.
1. Rochester
Photo credit: iStock/Davel5957
Not every community has something on offer for both young adults and retirees — but not every community is Rochester. Some 25% of its population is age 55 and over, and since it’s the headquarter city for the Mayo Clinic, quality health care options are never far from home.
Population: 122,413
Median Household Income: $87,767
Cost of Living: 101% of U.S. average
Average Rent Price: $1,500
Home Price-to-Income Ratio: 3.63
2. Winona
Photo credit: iStock/SamWagnerTimelapse
A small, scenic, and historic town tucked along the banks of the Mississippi River, Winona keeps residents of all ages young with the presence of its college community. University students also ensure the town gets more than its fair share of art and culture for a community of its size — and of course, all of this is at a cost of living 14% lower than the national average.
Population: 26,026
Median Household Income: $56,163
Cost of Living: 86% of U.S. average
Average Rent Price: $1,125
Home Price-to-Income Ratio: 4.16
3. Albert Lea
Photo credit: iStock/Jacob Boomsma
About a quarter of Albert Lea’s population is aged 65 or over, which makes this small town one that’s full of new friends for seniors. The town’s Senior Center organizes a variety of events and activities that keep older adults moving, and everything’s a little easier with a cost of living 15% lower than the U.S. average.
Population: 18,269
Median Household Income: $62,522
Cost of Living: 85% of U.S. average
Average Rent Price: $950
Home Price-to-Income Ratio: 2.53
💡 Quick Tip: If you refinance your mortgage and shorten your loan term, you could save a substantial amount in interest over the lifetime of the loan.
Best Places to Live in Minnesota Near the Water
They call Minnesota the Land of 10,000 Lakes — but it’s crisscrossed with rivers, too. Either way, here are three of the best spots to settle for affordable, scenic living.
1. Winona
Photo credit: iStock/SamWagnerTimelapse
If you should ever grow tired of the Mississippi waterfront, take heart: Winona also offers theater, galleries, museums, and more for those in need of indoorsy fun. With the bigger city of Rochester close at hand, this small town truly offers everything one could need.
Population: 26,029
Median Household Income: $56,163
Cost of Living: 86% of U.S. average
Average Rent Price: $1,125
Home Price-to-Income Ratio: 4.16
2. Duluth
Photo credit: iStock/Aneese
Living along Lake Superior is its own reward, and Duluth residents can also appreciate its many indoorsy attractions when the weather grows cold. (Or they can double down and take to the shores of the lake for some ice fishing.)
Population: 87,680
Median Household Income: $66,263
Cost of Living: 95% of U.S. average
Average Rent Price: $1,635
Home Price-to-Income Ratio: 3.90
3. Red Wing
Photo credit: iStock/SamWagnerTimelapse
Another Mississippi-side small town, Red Wing bears the distinction of being located just an hour outside of the Twin Cities, so its residents can benefit from big-city to-dos, too. Plus a cost of living 9% lower than the national average makes it eminently affordable for many.
Population: 16,756
Median Household Income: $65,259
Cost of Living: 91% of U.S. average
Average Rent Price: $1,300
Home Price-to-Income Ratio: 4.18
The Takeaway
For those looking for affordable places to live, Minnesota has something to offer families, young adults, and retirees alike, with abundant natural beauty and cultural attractions in its many budget-friendly towns.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
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FAQ
Where is the most affordable place to live in Minnesota?
While affordability is a shifting metric, and each person’s specific lifestyle and budgetary needs can have an effect on what’s considered affordable, Mankato is one of the most affordable metros in Minnesota, with a cost of living about 11% lower than the national average. Several other smaller Minnesota cities, like Red Wing, offer a below-average cost of living (at 91%), too.
Where is the cheapest suburb to live in Minnesota?
For those looking to enjoy the resources of the Twin Cities, suburbs like South St. Paul and Mounds View can have affordable costs with the main attractions within easy reach. Another option: Eagan, with a cost of living just under the U.S. average, but with many amenities and a lifestyle residents appreciate.
What is the cost of living in Minnesota for 2023?
Overall, Minnesota’s cost of living is about 96% of the U.S. average, and housing costs are only 85% of the national average, which can make it a good place for people looking for affordable real estate options.
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Does Your Money Seem to Disappear? How to Escape Sinkholes
This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.
See if this sounds familiar. You take $100 from the ATM on Friday but by Monday you can’t believe there’s only $10 left in your wallet. You remember a couple tips, tolls and those Girl Scout cookies, but surely that can’t have been $90?
Or, your credit card shows five Amazon transactions but all you remember ordering this month was dog food. (And no, Amazon, 6C9DQ15X2 doesn’t jog your memory.)
And then there are those Venmo requests. You pride yourself on paying them right after you go out for drinks or dinner, but how have they made such a big dent in your bank account?
These are symptoms of what financial influencer Tori Dunlap calls a “money sinkhole” — an area of your spending where money seems to disappear as if by magic. Others might call it unconscious spending, budget leaks, or lifestyle creep/inflation.
Sinkholes can make it hard to achieve your financial goals and can leave you feeling confused and guilty about your spending. In a worst-case scenario, you end up with what some call “more month than money,” meaning you regularly run out of money before your next paycheck.
So what? It’s hard to keep tabs on all your spending, especially if you’ve got multiple bank accounts, credit cards, and payment apps. But just acknowledging that you’re falling into sinkholes is a good start down the right path. Here are three other steps you can take to become more aware of where your money goes:
1. The right mindset makes it easier to carry out what’s known as “mental budgeting,” where you classify and organize your spending in your head, as you make decisions. Research shows that mental budgeting helps people resist sales and notice price changes.
2. Track every purchase and payment — including all your cash — for just one day using your smartphone’s notes app or an old-fashioned pocket-sized notebook. This is a great way to learn about your patterns and specific spending triggers.
3. Create one spending picture using a free budgeting app that connects all your accounts in one place. (SoFi’s Relay tool lets you create your own custom spending categories if you have problem areas.)
Related Reading
• ‘The Dreaded B-Word’: How to Start Budgeting (The Guardian)
• Where Did My Money Go? (YNAB)
• How to Budget on a Fixed Income (SoFi)
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The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
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Earn up to 3% cash back rewards toward your money goals.
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Is 450 a Good Credit Score?
Is 450 a Good Credit Score?
Here’s a question you may be asking yourself before a major purchase: Is my credit score high enough to get the best rates and terms? If your credit score is 450, then the answer is more than likely no.
A 450 credit score is considered to be below average by FICO® and VantageScore, two widely used credit scoring models. It’s also 265 points lower than the average American’s credit score of 715. But don’t despair: There are ways to improve your credit score and qualify for more borrowing options with better rates and terms.
Learn about a 450 credit score, whether you could get a credit card, auto loan, or mortgage loan with it, and how to build your credit score.
Key Points
• A 450 credit score is considered poor, limiting access to favorable debt terms.
• Strategies to build credit include timely bill payments, reducing debt, and authorized user status.
• Secured credit cards and authorized user roles can help build credit.
• Auto loans are possible with a 450 credit score but may have high interest rates and strict conditions.
• Personal loans and mortgages are challenging but may be available from alternative lenders.
What Does a 450 Credit Score Mean?
Before we dive into what a 450 credit score means, here’s a crash course on credit scores. This three-digit number is calculated using information from your credit reports, and it communicates to lenders how you manage your debt.
FICO Scores are used in the majority of lending decisions, and they consider five factors: payment history (35%), the amount you owe (30%), the length of your credit history (15%), your credit mix (10%), and new credit accounts (10%).
FICO Scores are categorized as follows:
• Below 580: Poor
• 580-669: Fair
• 670-739: Good
• 740-799: Very good
• 800 and up: Exceptional
As you can see, anything below 580 falls into the “poor” category, and this includes a 450 credit score. Borrowers with that score will likely have a difficult time getting approved for certain loans and credit cards. And the ones they can get may come with high fees, high interest rates, and less-than-favorable terms.
How to Build Your Credit Score
When you have a credit score of 450, consider taking steps to improve it — and increase the chances of getting approved for a credit card or loan. Here are some strategies to explore:
• Consistently pay your bills on time.
• Pay down revolving debt.
• Become an authorized user on a friend or family member’s credit card, or get a secured credit card and use it responsibly.
• Check your credit report regularly, and address any inaccuracies.
Recommended: Why Did My Credit Score Drop After a Dispute?
What Else Can You Get with a 450 Credit Score?
As we mentioned, a 450 credit score is considered below average. Getting approved for a loan or credit card will likely be difficult, but it’s not impossible. Let’s take a closer look.
Can I Get a Credit Card with a 450 Credit Score?
There’s no set credit score required for a credit card. However, chances are, you’ll find it a challenge to get approved for a traditional credit card with a 450 credit score. The ones you can get may come with higher interest rates and fees and few, if any, rewards.
A secured credit card may be the answer. It often has lower credit score requirements, higher debt-to-income ratios (DTI), and more flexible financial criteria. Secured cards function like traditional cards: You pay a cash deposit upfront to guarantee the credit line. This deposit functions as collateral. If you don’t make payments on time or you default on your debt, your lender can take your deposit. As you make monthly payments on time, your lender will report your activities to the national credit bureaus, and your credit score may go up.
Another idea is to become an authorized user on someone else’s card. The cardholder adds you to their account, and you can benefit from their positive financial habits.
Can I Get an Auto Loan with a 450 Credit Score?
Securing a car loan with a 450 credit score isn’t common, but it could happen. In 2024, only 1.9% of borrowers with a credit score of 300-500 got a car loan, according to Experian.
It’s possible that whatever loan you do qualify for will come with higher interest rates. According to Experian, borrowers with a 450 credit score received an average annual percentage rate (APR) of 15.43%, while borrowers with scores of 781 or higher were offered an average APR of 5.08%.
You may find it easier to get a car loan if you add a cosigner. You’ll both apply for the loan and be responsible for making payments. However, the cosigner doesn’t own your car.
Can I Get a Mortgage with a 450 Credit Score?
With a 450 credit score, you’re unlikely to get approved for a conventional loan, which typically requires a 620 credit score. Let’s take a look at the typical required minimum credit scores of some other types of home loans.
• FHA loan: The Federal Housing Administration (FHA) insures FHA loans. You’ll typically need to have a 580 credit score (with a 3.5% down payment) or 500 credit score (with a 10% down payment).
• VA loan: VA loans are backed by the U.S. Department of Veterans Affairs. There’s no specific credit score minimum to meet, though some lenders require at least a 620.
• USDA loan: USDA loans are backed by the U.S. Department of Agriculture. Most lenders for USDA loans require a minimum 640 credit score.
Bottom line: If you’re house hunting and have a below-average score, you may want to hit the pause button if you can and focus on improving your credit profile.
Can I Get a Personal Loan with a 450 Credit Score?
A personal loan can be used for just about anything, including consolidating high-interest credit card debt, paying for a wedding, or covering an emergency expense.
Typically, personal loans are unsecured, meaning you usually don’t need to put up a form of collateral, such as a house or car, to get approved. But you may have a difficult time finding a lender to extend you an unsecured loan if you have a 450 credit score. As with other types of credit, if you are approved for an auto loan, you may be subject to higher APRs and fees and shorter repayment periods.
Another option: a secured personal loan, which is generally easier to qualify for but will require you to put up collateral.
As you’re weighing your personal loan options, make sure to figure out how much your monthly payments will be based on the amount you want to borrow and the interest rate you’re offered. A personal loan calculator can help you crunch the numbers.
Recommended: Can You Get a First-Time Personal Loan With No Credit History?
The Takeaway
Is a 450 credit score good or bad? According to two common credit scoring models, it’s below average and far lower than the average American’s score. Fortunately, credit scores aren’t permanent, and you can take steps to start boosting your number. It helps to pay bills on time, keep debt low, diversify your credit mix, keep older accounts open, and monitor your credit report and report inaccuracies.
Remember, raising your score can take time, but the end result — positioning yourself for the best rates and terms — can be worth the wait.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
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