Cost of Living in Cottonwood, MN

With a cost of living index of 76, Cottonwood, MN is a very affordable place to live. Living here is 24% cheaper than the national average and 6% below the Minnesota state average of 82. Cottonwood is a small community of 1,120 residents.

Housing costs are the biggest factor in Cottonwood's cost of living. The median monthly rent is $914 (31% below the US median of $1,319), and the median home value sits at $180,200 (41% 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 Cottonwood is $90,750, which is 21% higher than the national median of $75,149. Residents spend roughly 12% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum.

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.