This cost of living in Rochester, MN information, indicates the average cost of housing, healthcare, transportation, groceries, utilities, and more.
Rochester is a mid-size city in southern Minnesota with an estimated population of 117,477 people. The city is well-known for being the home of Mayo Clinic, a not-for-profit academic medical center with more than 4500 scientists and physicians as well as 58,400 administrative and allied health staff.
Rochester also boasts of a thriving food scene, access to arts and culture, world-class museums, impeccable dining restaurants, and endless entertainment options. If you’re considering relocating to Rochester, MN or investing in the city’s real estate market, the cost of living index is one of the key things you’ll have to consider.
What’s a Cost of Living Index?
A cost of living index is the estimated amount of money that reflects the average costs of the basic necessities required for an individual to live in a precise area. The index usually considers the cost of housing, food, transportation, healthcare, taxes, the economy, goods and services, the income and salaries of residents as well as other significant factors.
This Rochester, MN cost of living index will make it easier for you to make a fair comparison with other similar cities. It can also help you make up your mind on where to live based on your income and lifestyle. Nonetheless, you should use this cost of living index as estimates only. Prices are often fluctuating – either going higher or lower.
Cost of Living in Rochester – How This Index is Calculated
Rochester, MN cost of living indices are calculated based on a US average of 100. This indicates that an amount is rated less than 1100 shows that Rochester is cheaper or more affordable than the national average. Also, if the cost of living index shows that Rochester is rated above 100, it means the city is more expensive or less affordable compared to the national average.
The total cost of living index in Rochester, MN is 93, rated as 9% less than the Minnesota average and 7% below the United States average. Rochester’s overall cost of living index is calculated using these categories:
- Goods/services (33%)
- Housing (30%)
- Groceries (13%)
- Utilities (10%)
- Transportation (9%) and
- Health care (5%)
Based on this list, it is obvious that the category of goods and services, as well as housing, make up the largest parts of the entire Rochester cost of living index. As a rule of thumb, everyday goods and services indicate a precise measure of the overall cost of goods in any specific city. Rochester’s goods and services are 10% lower than the state of Minnesota average and 5% lower than the national average.
In Rochester, MN, real estate is considered as one of the biggest factors in the cost of living indices. Rochester’s median home value is $240,472. The city’s home value has increased by 5.2% over the past year and experts predict that the value will increase by 2.1% within the following year. Here’s your chance to take a look at the current home listing in Rochester, MN.
In Rochester, the median list price per square foot is $194 which is rated above the Rochester Metro average of $178. Currently, the median cost of homes listed in Rochester is $269,900, though the median cost of homes that are sold is $238, 700. The cost of housing in Rochester, MN is 9% lower than the national average.
If you’re interested in renting, the median rent price in the city is $1,300 which is similar to the Rochester Metro median of $1,300. Rochester delinquent mortgages are 0.4% and are rated below the national value of 1.1%. Also, 3.7% of Rochester homeowners are currently underwater on their mortgage.
Over the last year, Rochester has witnessed a job market growth of 0.4%. The city’s future job growth over the next decade is expected to be 34.7% and rated higher than the national average of 33.5% during the same period of time. Rochester, MN has an unemployment rate of 2.3 which is below the US average of 3.9%.
Rochester Tax Rates
Rochester, MN’s least combined sales tax rate is 8.13%. This is the overall tax rate for the state, county, and city. Currently, the state of Minnesota sales tax rate is 6.88%. Rochester is located in Olmsted County which has a sales tax rate of 0.5%. However, the Rochester sales tax rate is 0.75%.
Property tax rates in Rochester, MN
Property taxes in the state of Minnesota are significant sources of revenue for counties, schools, and cities. These taxes are used to fund important local projects such as parks and libraries. In the state of Minnesota, property tax rates are similar to, but a bit higher than the United States average. Minnesota’s average effective tax rate is 1.15% which is slightly higher than the national average of 1.08%.
In Olmsted County where Rochester is located, the median home value is $188,300 while the median property tax payment is $2,264. The average effective property tax rate is 1.20%.
Rochester Median Income and Debt-To-Income Ratio
The median income of homeowners in Rochester, MN is $6,755 per month and $81,064 per year. As a rule of thumb, such a level of income would allow homeowners to budget up to $1,891 for home-related expenses every month. That’s a 28% debt-to-income ratio.
Similarly, renters in Rochester MN earn about $2,864 per month and $34,368 per year. This makes it possible for renters to spend up to $802 on monthly rental expenses with a debt-to-income ratio of 28%.
Rochester MN, transportation index is rated 95, which is lower than the state of Minnesota average of 103 and the national average of 100. Rochester’s usual one-way commute time takes 16.2 minutes, which is shorter than the national average of 26.4 minutes. Up to 71.7% of people in the city drive their own car, the percentage of those who carpool with others is 11.7%. Also, 6.7% take mass transit, while 3.8% work from home.
Rochester, MN air quality is rated 52 which is lower than the national average of 58. Also, the city’s water quality is 20, while the national average is 55. Rochester Superfund index is 92 while the United States average 87. Currently, Rochester has 1,194 physicians per 100,000 populations of people. This is higher than the US average of 210 per 100,000.
The cost of visiting an Optometrist is $79.50 which is 21.3% lower than the national average of $101.04. Also, the cost of visiting a doctor is $120.67 which is 12.3% higher than the national average of $107.44. The cost of seeing a dentist is $82.14 which is 9.2% lower than the national average of $90.42.
Goods and Services
The following are the average costs of goods and services in Rochester, MN. The cost of getting a haircut in Rochester is $18.99 which is 22.0% higher than the national average of $15.56. Also, the cost of getting your hair done in a beauty salon is $25.45 which is 29.5% less than the national average of $36.11.
Furthermore, the cost of toothpaste in Rochester is $2.37 which is 4.3% less than the US average of $2.47. The cost of shampoo is $1.02 which is 6.0% higher than the national average of $0.96. The cost of a movie ticket is $8.67 which is 14.4% less than the US average of $10.13. If you enjoy bowling, the average cost of that is $3.50 which is 26.1% less than the national average of $4.74
The cost of electricity in all of Rochester is $175.89 which is 6.0% higher than the national average of $165.96. Also, the cost of a phone is $25.27 in Rochester, which is 11.9% lower than the national average of $28.68.
The cost of ground beef in Rochester is $3.47 which is 12.9% less than the national average of $3.98. Also, the cost of fried chicken is $1.96 which is 39.1% higher than the national average of $1.41. The cost of milk (regular 1 Litter) is $1.90 which is 7.8% less than the national average of $2.06.
The price of potatoes (1kg) is $2.40 which is 19.6% less than the national average of $2.98. Also, the price of pizza is $9.32 which is 1.6% less than the national average of $9.47. The cost of beer is $8.57 which is 2.5% less than the national average of $8.79.
Rochester is ranked as the fourth-best livable city in Minnesota with a livability score of 82. The city is 7% less expensive than the US average and the chances of being a victim of crime are 25% lower than the national average. In fact, the year-over-year crime rate in Rochester is down by 16%. The city has a high school grad rate of 91% which is 10% higher than the national average. You can use this cost of living in the Rochester index to determine if the city is the best place for you.