Prior Lake, MN

Above Avg · 124

Minnesota · Population 27,832 · Updated March 2026

$1,548
Median Rent / Month
$130,278
Median Income
$429,900
Median Home Value
$1,839
Owner Costs / Month

Affordability

How far your income goes in Prior Lake

14.3%
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

$18,576
Annual Rent
$12,832
State Income Tax
$4,772
Property Tax (est.)

Cost of Living Overview

Prior Lake has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 124 (where 100 equals the national median), Prior Lake residents can expect to pay median rent of $1,548/month while earning a median household income of $130,278/year.

The median home value in Prior Lake, MN is $429,900, with typical monthly owner costs around $1,839 including mortgage, insurance, and taxes. The median rent-to-income ratio of 14.3% 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 Prior Lake.

Frequently Asked Questions

Common questions about living costs in Prior Lake

What is the cost of living in Prior Lake, MN?
The cost of living index in Prior Lake, MN is 124 (US average = 100). Median monthly rent is $1,548, median household income is $130,278/year, and the median home value is $429,900.
Is Prior Lake, MN affordable?
No, Prior Lake is more expensive than the national average with a cost index of 124. The rent-to-income ratio is 14.3%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Prior Lake, MN?
The median gross rent in Prior Lake, MN is $1,548 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $18,576.
What is the median household income in Prior Lake?
The median household income in Prior Lake, MN is $130,278 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%.