Minnesota · Population 20,678 · Updated March 2026
How far your income goes in Forest Lake
State-level tax rates that affect your costs
Forest Lake is more expensive than the national average. Higher housing costs are typically the primary driver. With a cost index of 107 (where 100 equals the national median), Forest Lake residents can expect to pay median rent of $1,379/month while earning a median household income of $89,879/year.
The median home value in Forest Lake, MN is $375,900, with typical monthly owner costs around $1,503 including mortgage, insurance, and taxes. The median rent-to-income ratio of 18.4% 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 Forest Lake.
Common questions about living costs in Forest Lake