Median home: $315,000 | Mortgage rate: 7% | Property tax: 1.02% | Insurance: $1,250/yr
Minnesota is a highly educated Midwest state with a strong job market. With a median home price of $315,000 and mortgage rates averaging 7%, understanding what you can afford before house hunting is essential.
The 28/36 rule is the gold standard: spend no more than 28% of gross income on housing and no more than 36% on total debt. In Minnesota, with a property tax rate of 1.02% and average insurance of $1,250/year, these costs add significantly to your monthly payment beyond just principal and interest.
A 20% down payment on the median Minnesota home requires $63,000. FHA loans with 3.5% down need just $11,025, but you will pay mortgage insurance. Minnesota offers a Homestead Market Value Exclusion that reduces taxable value.
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Based on the 28/36 rule, your total housing payment should not exceed 28% of gross monthly income, and total debts should stay under 36%. In Minnesota, with median home prices at $315,000, you typically need a household income of at least $315,000 to afford the median home.
To afford the median Minnesota home at $315,000 with 20% down at 7% interest, you need approximately $71,853 annual household income. This is based on the 28% housing cost guideline.
The median home price in Minnesota is approximately $315,000 as of 2026. Prices vary significantly by city and county. Minnesota is a highly educated Midwest state with a strong job market.
A 20% down payment on the median Minnesota home ($315,000) is $63,000. FHA loans allow 3.5% down ($11,025) and VA loans offer 0% down for eligible veterans.
Minnesota has a property tax rate of 1.02%, which is near the national average. On the median home, that is $3,213/year. Minnesota offers a Homestead Market Value Exclusion that reduces taxable value.