CALCMONEY // HOME AFFORDABILITY // MN
Find out how much home you can afford in Minnesota using local median home prices, current mortgage rates, and MN-specific property tax data.
Open Full Calculator$356,066
$2,295/mo
$305,663
$98,337/yr
| Median Home Price | $356,066 |
| Down Payment (20%) | $71,213 |
| Loan Amount | $284,853 |
| Monthly PI Payment | $1,849 |
| Monthly Property Tax | $297 |
| Monthly Insurance Est. | $148 |
| Total Monthly PITI | $2,295 |
| Required Gross Income (28% rule) | $98,337/yr |
| Max Affordable Price (28% rule) | $305,663 |
$12,462
$2,919/mo
Minnesota Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $356,066 | State median |
| Down Payment (20%) | $71,213 | Conventional |
| Monthly PITI (median home) | $2,295 | 6.76% rate |
| Required Income (28% rule) | $98,337 | Annual gross |
| Max Affordable Home | $305,663 | Based on median income |
| FHA Down Payment (3.5%) | $12,462 | Minimum FHA |
Monthly PITI includes principal, interest, property tax, and homeowners insurance.
The median home price in Minnesota is $356,066, with a current 30-year fixed mortgage rate of 6.76%. A buyer putting 20% down on the median home would carry a loan of $284,853, resulting in a monthly principal and interest payment of $1,849. Once property taxes and insurance are added, total monthly housing costs reach $2,295.
Property taxes in Minnesota average 1%, near the national average of 1.1%. On the median Minnesota home, property taxes add $297/month to total housing costs.
Minnesota levies a state income tax of 5.35%–9.85%, which affects take-home pay and therefore what you can realistically budget for housing. Mortgage interest may be deductible on both federal and Minnesota state returns — consult a tax professional for your situation.
Using the 28% rule, a household earning Minnesota's median income of $87,117/year can afford up to $2,033/month in total housing costs (principal, interest, taxes, and insurance). Based on Minnesota's current mortgage rate of 6.76% and property tax rate of 1%, that translates to a maximum affordable home price of approximately $305,663 with 20% down on a 30-year loan.
To comfortably afford the median Minnesota home priced at $356,066, you need an annual gross income of approximately $98,337. This is based on the standard 28% rule: your total monthly housing costs (principal and interest of $1,849, property taxes of $297, and insurance of $148) come to $2,295/month, which should not exceed 28% of your gross monthly income.
Minnesota's average property tax rate is 1%, which is near the national average of 1.1%. On the median Minnesota home of $356,066, that means annual property taxes of $3,561, or $297/month. Because lenders include property taxes in your debt-to-income calculation, Minnesota's property taxes have a relatively modest impact on overall affordability.
The minimum down payment depends on your loan type. For an FHA loan, you can put down as little as 3.5% — on the median Minnesota home of $356,066, that is $12,462. Conventional loans typically require 5% down, though some programs allow 3%. Putting down 20% ($71,213 on the median Minnesota home) lets you avoid private mortgage insurance (PMI), which can add 0.5%–1% to your annual loan cost. There are no Minnesota-specific minimum down payment requirements beyond federal guidelines.