Cost of Living in Hanover, MN

Population 3,495 · Minnesota · Data vintage 2023

138
Cost Index
(100 = US avg)
Page updated: · Data vintage: 2023 ACS 5-Year
Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Under 25,000 residents gives Hanover a small-town character that shows up in every data point below — from the commute patterns to the rental inventory. A typical home runs $422,000. The labor market has been unusually tight, with unemployment around 1.2% — below most comparable cities in the state.

Located 25 miles northwest of Minneapolis, Hanover falls within that metro's commuting orbit. Median home values run roughly 22% higher than Minneapolis' $346,000.

Cost Overview

Housing 138
Rent 137

Scale: 100 = US national average. Green < 90, Red > 110.

About the Cost of Living in Hanover

The median home value in Hanover is $421,700 — 38% above the national median of $305,000. Median rent runs $1,806/month, 37% higher than the national median of $1,314/month. The median household income of $147,944/year is 98% higher than the US median of $74,580. The local unemployment rate is 1.2%, below the national average of 4.8%. Minnesota's top state income tax rate is 9.8% and the combined sales tax is 7.4%. Overall, Hanover has a cost of living index of 138 versus the US average of 100, meaning it is 38% more expensive.

🏠 Housing

Median Home Value
$421,700
38% above avg
Zillow Home Value
$221,142
Zillow ZHVI
Median Rent
$1,806/mo
37% above avg
Price-to-Rent Ratio
19.5x
Favors buying
Property Tax Rate
1.1%
Effective rate

HUD Fair Market Rents by Bedroom

Studio
$702
1 BR
$784
2 BR
$937
3 BR
$1,307
4 BR
$1,537
Owner-occupied 91.9%
Renter-occupied 8.1%

💰 Estimated Monthly Budget

Rent median rent
$1,806
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $2,420/mo

Estimates based on median data and national averages. Actual costs vary.

🛒 Food & Groceries

National BLS average prices (2023). Local prices may vary.

🥚
Eggs (dozen)
$0.548
🍞
White Bread (lb)
$1.912
🥩
Ground Beef (lb)
$5.61

🚗 Transportation

Avg Commute
32.9 min
22% above avg
Gas Price
$3.145/gal
0% below avg
Work From Home
22.5%

Commute Mode

Drove alone
73.5%
Carpooled
1.8%
Public transit
0.5%
Walked
0.8%
Work from home
22.5%

Utilities

Electricity
$0.176/kWh
0% below avg

📋 Taxes

State Income Tax 9.8%
Total Sales Tax 7.4%
State rate 6.9%
Avg local rate 0.6%
Property Tax 1.1%

💼 Income & Employment

Median Household Income
$147,944
98% above avg
Per Capita Income
$52,771
Unemployment Rate
1.2%
74% below avg
Poverty Rate
2.2%
Labor Force Participation
77.0%

🎓 Education

Bachelor's degree+ 35.4%
Graduate degree 12.5%

👥 Demographics

Median Age 37.6
Male median age 38.3
Female median age 37.3

💨 Air Quality

EPA AQS 2023 — county-level monitoring data

Median AQI 49 — Good
52.4%
Good air days/yr
186
Max AQI recorded
236
PM2.5 days
113
Ozone days

Frequently Asked Questions

What is the cost of living in Hanover, MN?

Hanover has a cost index of 138 (100 = national average). It is 38% above the national average.

What is average rent in Hanover, MN?

The median gross rent in Hanover is $1,806 per month based on 2023 Census data.

What is the average home price in Hanover?

The median home value in Hanover is $421,700 according to Zillow and Census data.

What is the median income in Hanover?

The median household income in Hanover is $147,944 per year (2023 ACS 5-year estimates).

What is the sales tax in Hanover, MN?

The combined state and local sales tax rate in Hanover is 7.4%. The Minnesota state income tax top rate is 9.8%.

Is Hanover, MN affordable?

Hanover is above average in cost of living, with an index of 138 — about 38% higher than the national average.

Hanover at a Glance

Population
3,495
Median Income
$147,944
Home Value
$421,700
Median Rent
$1,806/mo
Unemployment
1.2%
Sales Tax
7.4%
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🗺️ County data for Minnesota

Explore county-level cost of living data

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