Cost of Living in Otsego, MN

Population 21,358 · Minnesota · Data vintage 2023

124
Cost Index
(100 = US avg)
Page updated: · Data vintage: 2023 ACS 5-Year
Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Otsego is a smaller Minnesota community of around 21000 residents, where median household incomes of $127,219 and housing costs ($367,000 for a typical home) give the local cost-of-living profile a distinctly small-town shape. An unemployment rate of 1.5% points to a labor market well on the tight side of the national distribution.

Located 25 miles northwest of Minneapolis, Otsego falls within that metro's commuting orbit. Housing prices track closely with Minneapolis' $346,000 median.

Cost Overview

Housing 120
Rent 129

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

About the Cost of Living in Otsego

The median home value in Otsego is $367,200 — 20% above the national median of $305,000. Median rent runs $1,696/month, 29% higher than the national median of $1,314/month. The median household income of $127,219/year is 71% higher than the US median of $74,580. The local unemployment rate is 1.5%, 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, Otsego has a cost of living index of 124 versus the US average of 100, meaning it is 24% more expensive.

🏠 Housing

Median Home Value
$367,200
20% above avg
Zillow Home Value
$421,185
Zillow ZHVI
Median Rent
$1,696/mo
29% above avg
Zillow Rent
$2,550/mo
Zillow ZORI
Price-to-Rent Ratio
18.0x
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 91.2%
Renter-occupied 8.8%

💰 Estimated Monthly Budget

Rent median rent
$1,696
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $2,310/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
34.5 min
28% above avg
Gas Price
$3.145/gal
0% below avg
Work From Home
13.4%

Commute Mode

Drove alone
76.3%
Carpooled
8.9%
Public transit
0.6%
Walked
0.3%
Work from home
13.4%

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
$127,219
71% above avg
Per Capita Income
$47,473
Unemployment Rate
1.5%
68% below avg
Poverty Rate
0.8%
Labor Force Participation
74.5%

🎓 Education

Bachelor's degree+ 31.1%
Graduate degree 10.7%

👥 Demographics

Median Age 34.4
Male median age 33.9
Female median age 34.8

💨 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

🏫 Schools

NCES CCD 2019 — public school district data

90%
4-Year Graduation Rate
12.2:1
Student-teacher ratio
3
Public schools
585
Total enrollment

Frequently Asked Questions

What is the cost of living in Otsego, MN?

Otsego has a cost index of 124 (100 = national average). It is 24% above the national average.

What is average rent in Otsego, MN?

The median gross rent in Otsego is $1,696 per month based on 2023 Census data.

What is the average home price in Otsego?

The median home value in Otsego is $367,200 according to Zillow and Census data.

What is the median income in Otsego?

The median household income in Otsego is $127,219 per year (2023 ACS 5-year estimates).

What is the sales tax in Otsego, MN?

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

Is Otsego, MN affordable?

Otsego is above average in cost of living, with an index of 124 — about 24% higher than the national average.

Otsego at a Glance

Population
21,358
Median Income
$127,219
Home Value
$367,200
Median Rent
$1,696/mo
Unemployment
1.5%
Sales Tax
7.4%
View all cities in Minnesota →
🗺️ County data for Minnesota

Explore county-level cost of living data

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