The 56701 zip code in Thief River Falls tops our ranking of the most affordable places to live in Minnesota.
We looked at 164 zip codes in the state, evaluating home values, rental costs, energy rates, property taxes, and five other affordability indicators. We used the data we gathered to calculate our proprietary Affordability Score for each zip code.
Top 10 most affordable places to live in Minnesota
| Rank | City | Affordability Score | Median home value | Rental costs |
|---|---|---|---|---|
| 1 | Thief River Falls 🥇 | 100.0 | $198,436 | $1,721 |
| 2 | Austin 🥈 | 97.9 | $175,687 | $891 |
| 3 | Fairmont 🥉 | 95.1 | $169,552 | $1,721 |
| 4 | Hibbing | 94.9 | $144,447 | $1,721 |
| 5 | Albert Lea | 94.1 | $161,675 | $1,721 |
| 6 | Marshall | 90.5 | $223,661 | $1,721 |
| 7 | East Grand Forks | 89.5 | $265,428 | $1,721 |
| 8 | Minneapolis | 88.4 | $189,048 | $1,367 |
| 9 | Waseca | 86.4 | $229,340 | $1,721 |
| 10 | Saint Cloud | 86.2 | $230,489 | $1,281 |
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1. Thief River Falls
Here's why the 56701 zip code in Thief River Falls is Minnesota's most affordable place to live.
🔎 Key data about Thief River Falls
| Data point | Value | Rank (out of 164 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 100.0 | No. 1 | N/A |
| Median home value | $198,436[1] | No. 6 | -$156,863.15 |
| Home affordability ratio | 2.8 | No. 4 | -1.1 |
| Home value five-year change | 6.1%[2] | No. 2 | -22.8% |
| Home value one-year forecast | -1.0%[3] | No. 124 | 0.0% |
| Rental costs | $1,721[4] | No. 69 | $0 |
| Rent affordability ratio | 1.87% | No. 64 | 0.0% |
| Median household income | $71,781[5] | No. 118 | -$20,339 |
| Property taxes | $2,268[6] | No. 14 | -$1,393 |
| Energy costs | $0.12 kWh[7] | No. 1 | -$0.04 |
Thief River Falls's 56701 zip code is the cheapest place to live in Minnesota, leading the 164 markets we evaluated.
The median home value is $198,436, making it the 6th-cheapest housing market in the state. Forecasts project a -1.0% change in home values in the next year. Rent in the zip code averages $1,721 per month, which is the 64th cheapest amount in Minnesota.
The median property tax for homeowners in Thief River Falls is $2,268 per household, the No. 14 ranked market in Minnesota.
Residents pay $0.12 per kWh of electricity, which ranks No. 1 among Minnesota markets.
2. Austin
The 55912 zip code is the 2nd-cheapest place to live in Minnesota.
🔎 Key data about Austin
| Data point | Value | Rank (out of 164 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 97.9 | No. 2 | N/A |
| Median home value | $175,687[8] | No. 4 | -$179,612.78 |
| Home affordability ratio | 2.768155419 | No. 5 | -1.1 |
| Home value five-year change | 0.5295401788[9] | No. 163 | 24.1% |
| Home value one-year forecast | 1.8%[10] | No. 163 | 2.8% |
| Rental costs | $891[11] | No. 1 | -$831 |
| Rent affordability ratio | 1.40% | No. 11 | -0.5% |
| Median household income | 63467[12] | No. 146 | -$28,653 |
| Property taxes | $1,668[13] | No. 2 | -$1,993 |
| Energy costs | 0.156013656 kWh[14] | No. 32 | $0.00 |
Austin's 55912 zip code has a median home value of $175,687, which is the 163rd-cheapest housing market in Minnesota. You can rent for an average of $891 per month. That's the 1st-cheapest price in the state.
The average household income in the zip code is 63467, which ranks 146th-highest in the state.
Homeowners in Austin pay a median property tax of $1,668 per year, making it the 2nd-most affordable market in Minnesota.
Austin ranks No. 32 among Minnesota energy markets. You'll pay 0.156013656 per kWh of electricity.
3. Fairmont
The 3rd-cheapest place to live in Minnesota is Fairmont's 56031 zip code.
🔎 Key data about Fairmont
| Data point | Value | Rank (out of 164 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 95.1 | No. 3 | N/A |
| Median home value | $169,552[15] | No. 3 | -$185,747.56 |
| Home affordability ratio | 2.891055742 | No. 6 | -1.0 |
| Home value five-year change | 0.3957593799[16] | No. 138 | 10.7% |
| Home value one-year forecast | -0.988338736%[17] | No. 124 | 0.0% |
| Rental costs | $1,721[18] | No. 69 | $0 |
| Rent affordability ratio | 1.87% | No. 64 | 0.0% |
| Median household income | 58647[19] | No. 155 | -$33,473 |
| Property taxes | $1,781[20] | No. 4 | -$1,880 |
| Energy costs | 0.1536286839 kWh[21] | No. 19 | $0.00 |
The No. 3 cheapest housing market in Minnesota is Fairmont's 56031 zip code, with a median home value of $169,552. Rents in the market average $1,721 per month, making it the 69th-most affordable rental market in the state.
The median property tax for households in Fairmont is $1,781, which makes it the 4th-cheapest place in Minnesota. Fairmont ranks No. 19 among Minnesota markets by energy costs. Residents pay 0.1536286839 per kWh of electricity.
4. Hibbing
The 55746 zip code in Hibbing comes in at No. 4 on our list of the cheapest places to live in Minnesota.
🔎 Key data about Hibbing
| Data point | Value | Rank (out of 164 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 94.9 | No. 4 | N/A |
| Median home value | $144,447[22] | No. 1 | -$210,851.81 |
| Home affordability ratio | 2.714719144 | No. 3 | -1.1 |
| Home value five-year change | 0.480649028[23] | No. 162 | 19.2% |
| Home value one-year forecast | 1.1%[24] | No. 157 | 2.1% |
| Rental costs | $1,721[25] | No. 69 | $0 |
| Rent affordability ratio | 1.87% | No. 64 | 0.0% |
| Median household income | 53209[26] | No. 159 | -$38,911 |
| Property taxes | $1,136[27] | No. 1 | -$2,525 |
| Energy costs | 0.1382582394 kWh[28] | No. 8 | -$0.02 |
The No. 1 cheapest housing market in Minnesota is Hibbing's 55746 zip code, where the median home value is $144,447. Renters here pay an average of $1,721 per month.
When it comes to energy costs, Hibbing ranks 8th among Minnesota markets. Residents pay 0.1382582394 per kWh of electricity.
The median property tax for households in the zip code is $1,136, which makes it the 1st-cheapest market in Minnesota.
5. Albert Lea
The 56007 zip code in Albert Lea ranks No. 5 among Minnesota's most affordable places to live.
🔎 Key data about Albert Lea
| Data point | Value | Rank (out of 164 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 94.1 | No. 5 | N/A |
| Median home value | $161,675[29] | No. 2 | -$193,623.88 |
| Home affordability ratio | 2.60292405 | No. 2 | -1.3 |
| Home value five-year change | 0.4196665368[30] | No. 146 | 13.1% |
| Home value one-year forecast | 0.7%[31] | No. 144 | 1.7% |
| Rental costs | $1,721[32] | No. 69 | $0 |
| Rent affordability ratio | 1.87% | No. 64 | 0.0% |
| Median household income | 62113[33] | No. 150 | -$30,007 |
| Property taxes | $1,751[34] | No. 3 | -$1,910 |
| Energy costs | 0.156013656 kWh[35] | No. 32 | $0.00 |
Albert Lea's 56007 zip code has a median home value of $161,675, the 2nd-cheapest market in the state. Forecasts project a 0.7% change in home values in the next year.
The median property tax per household in Albert Lea is $1,751. It's the 3rd-cheapest market by tax rate in Minnesota.
6. Marshall
The No. 6 most affordable place to live in Minnesota is the 56258 zip code.
🔎 Key data about Marshall
| Data point | Value | Rank (out of 164 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 90.5 | No. 6 | N/A |
| Median home value | $223,661[36] | No. 10 | -$131,637.87 |
| Home affordability ratio | 3.39379744 | No. 28 | -0.5 |
| Home value five-year change | 0.3293384294[37] | No. 109 | 4.0% |
| Home value one-year forecast | -1.4%[38] | No. 28 | -0.4% |
| Rental costs | $1,721[39] | No. 69 | $0 |
| Rent affordability ratio | 1.87% | No. 64 | 0.0% |
| Median household income | 65903[40] | No. 136 | -$26,217 |
| Property taxes | $2,278[41] | No. 15 | -$1,383 |
| Energy costs | 0.1361832486 kWh[42] | No. 6 | -$0.02 |
The back half of our top 10 kicks off with Marshall's 56258 zip code, which has the 10th-cheapest home values in Minnesota. The median home value is $223,661. Rents average $1,721 per month, making it the 69th-most affordable rental market in the state.
Residents pay 0.1361832486 per kWh of electricity. It's the 6th-cheapest energy market.
7. East Grand Forks
East Grand Forks's 56721 zip code is the 7th-cheapest place to live in Minnesota.
🔎 Key data about East Grand Forks
| Data point | Value | Rank (out of 164 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 89.5 | No. 7 | N/A |
| Median home value | $265,428[43] | No. 28 | -$89,870.98 |
| Home affordability ratio | 3.055290099 | No. 9 | -0.8 |
| Home value five-year change | 0.2397117807[44] | No. 27 | -4.9% |
| Home value one-year forecast | -1.7%[45] | No. 1 | -0.7% |
| Rental costs | $1,721[46] | No. 69 | $0 |
| Rent affordability ratio | 1.87% | No. 64 | 0.0% |
| Median household income | 86875[47] | No. 88 | -$5,245 |
| Property taxes | $2,806[48] | No. 40 | -$855 |
| Energy costs | 0.1536286839 kWh[49] | No. 19 | $0.00 |
You'll find the 28th-cheapest home values in Minnesota in East Grand Forks's 56721 zip code. The median value: $265,428. Renters in East Grand Forks pay an average of $1,721 per month.
Homeowners in East Grand Forks pay a median property tax of $2,806 per year, which is Minnesota's 40th-most affordable market.
The average household income is 86875, which ranks 88th-highest in the state.
8. Minneapolis
The 8th-cheapest place to live in Minnesota is Minneapolis's 55403 zip code.
🔎 Key data about Minneapolis
| Data point | Value | Rank (out of 164 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 88.4 | No. 8 | N/A |
| Median home value | $189,048[50] | No. 5 | -$166,251.58 |
| Home affordability ratio | 3.209911239 | No. 15 | -0.6 |
| Home value five-year change | 0.2888577662[51] | No. 69 | 0.0% |
| Home value one-year forecast | -1%[52] | No. 123 | 0.0% |
| Rental costs | $1,367[53] | No. 12 | -$354 |
| Rent affordability ratio | 2.32% | No. 149 | 0.5% |
| Median household income | 58895[54] | No. 154 | -$33,225 |
| Property taxes | $3,526[55] | No. 77 | -$135 |
| Energy costs | 0.156013656 kWh[56] | No. 32 | $0.00 |
The 5th-cheapest housing market in Minnesota is Minneapolis's 55403 zip code, with a median home value of $189,048. Renters pay an average of $1,367 per month, the No. 12 rental market in the state.
The median property tax for households in Minneapolis is $3,526, which makes it the 77th-cheapest place in Minnesota. The average household income of 58895 ranks 154th.
9. Waseca
Waseca's 56093 zip code sneaks into the top ten of Minnesota's most affordable places to live.
🔎 Key data about Waseca
| Data point | Value | Rank (out of 164 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 86.4 | No. 9 | N/A |
| Median home value | $229,340[57] | No. 13 | -$125,959.80 |
| Home affordability ratio | 3.277917558 | No. 20 | -0.6 |
| Home value five-year change | 0.4489257144[58] | No. 154 | 16.0% |
| Home value one-year forecast | -0.988338736%[59] | No. 124 | 0.0% |
| Rental costs | $1,721[60] | No. 69 | $0 |
| Rent affordability ratio | 1.87% | No. 64 | 0.0% |
| Median household income | 69965[61] | No. 127 | -$22,155 |
| Property taxes | $2,667[62] | No. 32 | -$994 |
| Energy costs | 0.156013656 kWh[63] | No. 32 | $0.00 |
The 13th-cheapest housing market in Minnesota is Waseca's 56093 zip code, where the median home value is $229,340. Renters pay an average of $1,721 per month. It's the state's 69th-cheapest rental market.
The median property tax for households within the zip code is $2,667, which makes it the 32nd-cheapest property tax rate in Minnesota.
10. Saint Cloud
The final spot on our list of the most affordable places to live in Minnesota goes to the 56303 zip code in Saint Cloud.
🔎 Key data about Saint Cloud
| Data point | Value | Rank (out of 164 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 86.2 | No. 10 | N/A |
| Median home value | $230,489[64] | No. 15 | -$124,810.35 |
| Home affordability ratio | 3.585814047 | No. 47 | -0.3 |
| Home value five-year change | 0.4547862563[65] | No. 156 | 16.6% |
| Home value one-year forecast | 0.7%[66] | No. 144 | 1.7% |
| Rental costs | $1,281[67] | No. 7 | -$441 |
| Rent affordability ratio | 1.99% | No. 125 | 0.1% |
| Median household income | 64278[68] | No. 143 | -$27,842 |
| Property taxes | $1,980[69] | No. 8 | -$1,681 |
| Energy costs | 0.156013656 kWh[70] | No. 32 | $0.00 |
The 15th-most affordable market in Minnesota is Saint Cloud's 56303 zip code. The median home value is $230,489. Rent in the market costs $1,281 per month on average, making it the 7th-most affordable rental market in Minnesota.
The median property tax for households in Saint Cloud is $1,980, which is the 8th-cheapest property tax rate in the state.
Saint Cloud ranks No. 32 among Minnesota markets by energy costs, with households paying 0.156013656 per kWh of electricity.
How we ranked the most affordable places in Minnesota
We evaluated 164 zip codes in Minnesota with a population over 10,000 on nine metrics. We then assigned each market an Affordability Score based on its weighted and combined rankings.
Our proprietary Affordability Score is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the affordability of a particular zip code. It takes into account these key data points for each zip code.
- Median home value: The median home value for each zip code comes from the Zillow Home Value Index. The lower the median home value relative to the median value in Minnesota, the higher our score on this component. We assign a weight of 23.8% to median home value.
- Home affordability ratio. The home affordability ratio is the typical median home value divided by the median household income in the zip code, which reveals the number of years of household income needed to afford a home in that zip code. A lower ratio is better because it means more households can afford a home. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 23.8% to the home affordability ratio.
- Home value five-year change: The home value five-year change is the amount that the median home value in the zip code has risen or fallen during the last five years. Our data comes from the Zillow Home Value Index. We assign a weight of 4.8% to the home value five-year change.
- Home value one-year forecast: The home value one-year forecast comes from Zillow Forecast data. It projects how much home values in the zip code are forecasted to change in the next year. We assign a weight of 4.8% to the home value one-year forecast.
- Rental costs. The rental costs are the observed rents in the zip code, sourced from the Zillow Observed Rent Index. The index includes "listed rents that fall into the 40th to 60th percentile range for all homes and apartments in a given region." We assign a weight of 11.9% to rental costs.
- Median household income: The inflation-adjusted median household income figures for the zip code comes from the U.S. Census American Community Survey. We assign a weight of 4.8% to median household income.
- Rent affordability ratio. The rent affordability ratio is the ratio of rental costs divided by median household income, which provides the percentage of household income needed to pay a typical month’s rent in the zip code. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 11.9% to the rent affordability ratio.
- Property taxes: The property tax figures are the median real estate taxes paid in the zip code, sourced from the U.S. Census American Community Survey. The lower the property tax rate relative to the Minnesota average, the higher our score on this component. We assign a weight of 7.1% to property taxes.
- Energy costs: The energy costs are the costs of a kilowatt hour (kWh) of residential electricity in the zip code, sourced from the U.S. Department of Energy. The lower the cost of electricity relative to the Minnesota average, the higher our score on this component. We assign a weight of 7.1% to energy costs.
✍️ Editor’s note: Our Affordability Score identifies the most affordable places in a state by zip code. Often the zip code we identify will represent an entire city or portion of a city.
Occasionally the zip code we identify will encompass an area that includes one or more small towns. In these cases, the data we’ve gathered applies to the entire zip code, not just the single town we’re using to help identify the zip code's location.
If you’re looking to move to one of these affordable places, we recommend doing additional research to make sure the costs in the area — and the quality of life it offers — meet your specific needs.
