Minnesota residents – and those looking to relocate – will be pleased to know that the state offers extreme value for homebuyers.
Many markets are within commuting distance of Minneapolis-St. Paul, the third most populous metro area in the Midwest. In fact, Saint Paul itself has even made the list this year. Yet, the price tag for homes isn’t what you’d expect for a major city.
Other areas are solidly suburban or rural, giving future homebuyers options.
If you’re tired of sky-high home prices, try house shopping in one of these Minnesota gems.
Affordable Minnesota Cities and Typical Home Prices
| Ranking | City | Average Home Cost |
|---|---|---|
| 1 | Austin | $182,645 |
| 2 | Willmar | $238,332 |
| 3 | Winona | $249,475 |
| 4 | Saint Cloud | $250,481 |
| 5 | Moorhead | $279,789 |
| 6 | Duluth | $280,595 |
| 7 | Owatonna | $289,732 |
| 8 | Brooklyn Center | $291,939 |
| 9 | Saint Paul | $292,659 |
| 10 | Faribault | $296,589 |
1. Austin - $182,645
No, not that Austin. While the Texas city’s typical home price is north of $500,000, Austin, Minnesota homes are available in the $180s, with an estimated monthly payment of just $1,447. According to Explore Minnesota, the town is home to 28 city parks, 60 restaurants, and don’t forget the SPAM® Museum. As you might imagine, a major employer in the area is Hormel, inventor of the meat product.
2. Willmar - $238,332
Willmar offers outdoor activities such as the Glacial Lakes Trail, a 40-mile biking path, and job opportunities in agriculture, manufacturing, retail, and healthcare. Homebuyers who meet USDA eligibility criteria can purchase a home with zero-down payment anywhere in and around the town, since USDA defines this area as rural. Conventional borrowers can expect an estimated mortgage cost of $1,888 per month for an average home here.
3. Winona - $249,475
If you guessed that actress Winona Ryder was named after this town, you would be right. She was born in nearby Olmsted County. But trivia aside, the city offers live music, a marine art museum featuring water-inspired art, and plenty of outdoor fun for residents, famous or not. The monthly cost of buying a typical home in Winona? An estimated $1,977.
4. Saint Cloud - $250,481
Minnesota’s 12th-largest city, Saint Cloud, offers much lower prices than most U.S. cities of this size. At just under 70,000 in population, the city possesses a more diverse employment picture than smaller towns, giving homebuyers a solid opportunity to afford – and enjoy – living here. The typical mortgage payment in Saint Cloud is estimated at $1,985 per month.
5. Moorhead - $279,789
Moorhead, with a population of around 45,000, offers residents parks, museums, theatres, and four distinct colleges and universities. Situated just across the Red River from Fargo, North Dakota, Moorhead is an affordable alternative for commuters to the larger city. Buying a home in Moorhead comes with an estimated monthly price tag of $2,217.
6. Duluth - $280,595
On the shores of Lake Superior, Duluth offers water sports, hiking, skiing, a railroad museum, and so much more, according to VisitDuluth.com. And with a population north of 80,000, this is no backwater town. Expect a thriving economy and good earning potential, with a median household income of over $66,000; that's lower than the U.S. median of $83,700, but high given how affordable it is to live here. The monthly mortgage payment for a typical home in Duluth? An estimated $2,223.
7. Owatonna - $289,732
An hour south of Minneapolis, Owatonna provides economic opportunities, as major corporations such as Federated Insurance and Viracon call it home. But the town isn’t all about work. The historic section of downtown is a major attraction: it retains the feel of what the area was like in the early 1900s. Based on the average home price, estimated monthly mortgage costs here are just $2,296.
8. Brooklyn Center - $291,939
A suburb of Minneapolis – conveniently located just a 15-minute drive from downtown – this town offers a short commute to a large city and outdoor attractions such as kayaking on the Mississippi River, golf, and 120 miles of trails. Buying an average home in Brooklyn Center comes at an estimated cost of just $2,313 per month.
9. Saint Paul - $292,659
Saint Paul is the capital of Minnesota and, along with adjacent Minneapolis, forms the famous “Twin Cities.” With a population of over 300,000, Saint Paul offers big city amenities at a cost of living that rivals many smaller towns. Homes here are affordable, with the typical property estimated to have a monthly mortgage payment of $2,319.
10. Faribault - $296,589
Situated in southern Minnesota, Faribault is about one hour from the Twin Cities. This town of around 23,000 provides easy access to the larger metropolitan area while offering a small-town feel. Want to live in Faribault? Expect a monthly mortgage cost of $2,350.
Get Pre-Approved for Your Minnesota Home
Many towns and cities across Minnesota are affordable for just about any budget. From the vibrant capital of Saint Paul to the more laid-back town of Willmar, there are opportunities abound all over the state. See what home price you qualify for by requesting your pre-approval today.
Methodology
To find the 10 most affordable housing markets in Minnesota, we started with average home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2025. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage at 6.395%, the recent 30-day average from rate marketplace I Can Buy based on a buyer with a 700 credit score putting 5% down. We added PMI costs per mortgage insurance provider MGIC and tax rates by state from TaxFoundation.org. Homeowner’s insurance estimates were calculated using Nerdwallet’s cost in each state for $300,000 in dwelling coverage. We multiplied this rate by 67.8%, the U.S. average of total market value represented by the structure according to ResiClub (since homeowners insurance is based on the structure, not total value). We then multiplied this rate by the average home’s total market value. We assumed no HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population nationwide per Zillow data.
Estimated payments are for example purposes only. Not a commitment to lend.
