Cottage Grove, MN

Above Avg · 118

Minnesota · Population 40,124 · Updated March 2026

$1,644
Median Rent / Month
$121,452
Median Income
$359,600
Median Home Value
$1,779
Owner Costs / Month

Affordability

How far your income goes in Cottage Grove

16.2%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Minnesota

State-level tax rates that affect your costs

9.85%
Income Tax (Top Rate)
6.875%
Sales Tax
1.11%
Property Tax Rate

Estimated Annual Costs

$19,728
Annual Rent
$11,963
State Income Tax
$3,992
Property Tax (est.)

Cost of Living Overview

Cottage Grove is more expensive than the national average. Higher housing costs are typically the primary driver. With a cost index of 118 (where 100 equals the national median), Cottage Grove residents can expect to pay median rent of $1,644/month while earning a median household income of $121,452/year.

The median home value in Cottage Grove, MN is $359,600, with typical monthly owner costs around $1,779 including mortgage, insurance, and taxes. The median rent-to-income ratio of 16.2% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

Minnesota's top income tax rate of 9.85% is among the highest in the nation, adding to the overall cost burden. Combined with a 6.875% sales tax rate and 1.11% effective property tax rate, the overall tax environment is a factor in the total cost of living in Cottage Grove.

Frequently Asked Questions

Common questions about living costs in Cottage Grove

What is the cost of living in Cottage Grove, MN?
The cost of living index in Cottage Grove, MN is 118 (US average = 100). Median monthly rent is $1,644, median household income is $121,452/year, and the median home value is $359,600.
Is Cottage Grove, MN affordable?
No, Cottage Grove is more expensive than the national average with a cost index of 118. The rent-to-income ratio is 16.2%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Cottage Grove, MN?
The median gross rent in Cottage Grove, MN is $1,644 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $19,728.
What is the median household income in Cottage Grove?
The median household income in Cottage Grove, MN is $121,452 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Minnesota?
Minnesota has a top income tax rate of 9.85%, a sales tax of 6.875%, and an effective property tax rate of 1.11%.