Income needed to buy a house in Minnesota
A median-priced home in Minnesota costs $344,600. With 20% down you'd need about $97,272 a year, $10,155 more than the state's median household income of $87,117. Minnesota ranks #29 of 51 for the lowest income needed.
Income needed: $97,272 a year
Defaults: state median home value and property tax (Census ACS 2024), median homeowners insurance paid by owners with a mortgage (Census ACS 2024; quotes vary by home and ZIP code), 30-year rate 6.95% (Freddie Mac, week of 2026-09-17).
You'd need a household income of about $97,272 a year to buy a $344,600 home in Minnesota with $68,920 down.
Based on lenders' 28/36 rule: housing costs under 28% of gross income, all debt under 36%.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $1,825 |
| Property tax | $292 |
| Homeowners insurance | $153 |
| Total | $2,270 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $17,230 | $2,748 | $117,782 |
| 10% | $34,460 | $2,627 | $112,587 |
| 20% | $68,920 | $2,270 | $97,272 |
Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in Minnesota: what's different
- Transfer tax
- 0.33% deed tax
- On the median home
- $1,140
- Homestead break
- Market value exclusion
- First-time buyer help
- Minnesota Housing
- Transfer and recording taxes. The deed tax is 0.33% of the price (0.34% in Hennepin and Ramsey counties), and the mortgage registry tax is 0.23% of the loan. On the median Minnesota home ($344,600), that's about $1,140 in deed tax.
- Property tax breaks for your home. A homesteaded home gets the market value exclusion: 40% of the first $95,000 of value (up to $38,000), shrinking as value rises until it ends at $517,200. Apply for homestead with the county assessor after you move in.
- First-time buyer help. Minnesota Housing offers Start Up through participating lenders. Check its site for income and price limits.
Checked against official sources on September 25, 2026. Local transfer taxes and exemptions vary, so confirm with the county before you close.
Home prices in the Minnesota metro areas we cover
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Minneapolis, MN | $108,468 | $384,300 | $97,928 |
| Fargo, ND (25% in MN) | $86,142 | $300,200 | $76,945 |
With 20% down, the median home takes about $86,142 a year in the Fargo area and $108,468 in the Minneapolis area, compared with $97,272 for the statewide median.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. The metro area centered in North Dakota is included because many of its residents live in Minnesota; the share in the state is in parentheses. Rows are ordered by how many residents live in Minnesota. Income needed: 20% down at 6.95%, the metro's median property tax and its main state's median homeowners insurance for homes with a mortgage (Census ACS 2024), under the 28% rule.
What makes owning in Minnesota about average among states
- Home prices: the median value of $344,600 is 4% below the U.S. median of $360,600.
- Property tax: about 1.02% of value a year ($292 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,837 a year for homeowners insurance in 2024 (Census ACS). Premiums have risen in most states since then, and they vary a lot by home and ZIP code, so get quotes.
- Mortgage rate: each 1-point rise in rates adds roughly $188 a month on this loan.
16 states need at least 20% less income to buy their median home. States with a similar income requirement:
Frequently asked questions
How much do you need to make to buy a house in Minnesota?
About $97,272 a year for the median home of $344,600 with 20% down at 6.95%. With 10% down it's about $112,587.
What is the property tax rate in Minnesota?
The median Minnesota homeowner pays $3,501 a year, about 1.02% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in Minnesota?
Median rent is $1,291 a month, while owning the median home costs about $2,270 a month with 20% down, before maintenance. Renting affordably takes about $51,640 a year under the 30% rule.