Cost of Living in Montgomery, MN

Population 3,366 · Minnesota · Data vintage 2023

Cost Index
(100 = US avg)

Page updated: April 2026 · Data vintage: 2023 ACS 5-Year

Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Housing costs in Montgomery stay well under national norms: a median home value of $219,000 against median household incomes of $74,018 gives the city one of the more comfortable price-to-income ratios in Minnesota.

Montgomery is about 40 miles southwest of Minneapolis, the nearest large metro — close enough that regional housing and labor patterns are shaped largely by the larger market. Median home values run roughly 37% lower than Minneapolis' $346,000.

Cost Overview

Housing 72

Rent 68

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

About the Cost of Living in Montgomery

The median home value in Montgomery is $218,900 — 28% below the national median of $305,000. Median rent runs $896/month, 32% lower than the national median of $1,314/month. The median household income of $74,018/year is 1% lower than the US median of $74,580. The local unemployment rate is 3.5%, 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, Montgomery has a cost of living index of 70 versus the US average of 100, meaning it is 30% less expensive.

📍

Montgomery has limited residential data

Detailed housing and income data is limited for this location. Here are the nearest cities with full cost of living data:

Faribault, MN

Median home: $233,900

Rent: $1,041/mo

Income: $61,662

Northfield, MN

Median home: $305,300

Rent: $1,036/mo

Income: $92,000

Prior Lake, MN

Median home: $429,900

Rent: $1,548/mo

Income: $130,278

St. Peter, MN

Median home: $238,700

Rent: $943/mo

Income: $65,042

Lakeville, MN

Median home: $425,200

Rent: $1,727/mo

Income: $138,119

🏠 Housing

Median Home Value

$218,900

28% below avg

Zillow Home Value

$154,148

Zillow ZHVI

Median Rent

$896/mo

32% below avg

Price-to-Rent Ratio

20.4x

Favors renting

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 80.9%

Renter-occupied 19.1%

💰 Estimated Monthly Budget

Rent median rent

$896

Groceries national estimate

$400

Utilities local estimate

$88

Transportation local gas prices

$126

Estimated Total $1,510/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

25.6 min

5% below avg

Gas Price

$3.145/gal

0% below avg

Work From Home

13.7%

Commute Mode

Drove alone

72.5%

Carpooled

4.4%

Walked

8.8%

Work from home

13.7%

⚡ 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

$74,018

1% below avg

Per Capita Income

$36,504

Unemployment Rate

3.5%

28% below avg

Poverty Rate

5.8%

Labor Force Participation

71.6%

🎓 Education

Bachelor's degree+ 15.3%

Graduate degree 5.0%

👥 Demographics

Median Age 39.1

Male median age 32.9

Female median age 41.1

🏫 Schools

NCES CCD 2019 — public school district data

87%

4-Year Graduation Rate

16.1:1

Student-teacher ratio

Public schools

1,913

Total enrollment

Frequently Asked Questions

What is the cost of living in Montgomery, MN?

Montgomery has a cost index of 70 (100 = national average). It is 30% below the national average.

What is average rent in Montgomery, MN?

The median gross rent in Montgomery is $896 per month based on 2023 Census data.

What is the average home price in Montgomery?

The median home value in Montgomery is $218,900 according to Zillow and Census data.

What is the median income in Montgomery?

The median household income in Montgomery is $74,018 per year (2023 ACS 5-year estimates).

What is the sales tax in Montgomery, MN?

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

Is Montgomery, MN affordable?

Yes, Montgomery is generally considered affordable, with a cost of living index of 70 — about 30% below the US national average of 100.

Montgomery at a Glance

Population: 3,366
Median Income: $74,018
Home Value: $218,900
Median Rent: $896/mo
Unemployment: 3.5%
Sales Tax: 7.4%

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