Cost of Living in Clara City, MN

With a cost of living index of 75, Clara City, MN is a very affordable place to live. Living here is 25% cheaper than the national average and 7% below the Minnesota state average of 82. Clara City is a small community of 1,497 residents.

Housing costs are the biggest factor in Clara City's cost of living. The median monthly rent is $1,063 (19% below the US median of $1,319), and the median home value sits at $116,500 (62% below the national median of $304,900). At current prices, the median home costs roughly 2x the median household income — well within traditional affordability guidelines.

The median household income in Clara City is $58,431, which is 22% lower than the national median of $75,149. Residents spend roughly 22% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.