Otsego, MN

Above Avg · 122

Minnesota · Population 21,358 · Updated March 2026

$1,696
Median Rent / Month
$127,219
Median Income
$367,200
Median Home Value
$1,903
Owner Costs / Month

Affordability

How far your income goes in Otsego

16.0%
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

$20,352
Annual Rent
$12,531
State Income Tax
$4,076
Property Tax (est.)

Cost of Living Overview

Otsego has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 122 (where 100 equals the national median), Otsego residents can expect to pay median rent of $1,696/month while earning a median household income of $127,219/year.

The median home value in Otsego, MN is $367,200, with typical monthly owner costs around $1,903 including mortgage, insurance, and taxes. The median rent-to-income ratio of 16.0% 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 Otsego.

Frequently Asked Questions

Common questions about living costs in Otsego

What is the cost of living in Otsego, MN?
The cost of living index in Otsego, MN is 122 (US average = 100). Median monthly rent is $1,696, median household income is $127,219/year, and the median home value is $367,200.
Is Otsego, MN affordable?
No, Otsego is more expensive than the national average with a cost index of 122. The rent-to-income ratio is 16.0%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Otsego, MN?
The median gross rent in Otsego, MN is $1,696 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $20,352.
What is the median household income in Otsego?
The median household income in Otsego, MN is $127,219 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%.