Cost of Living in Madison, MN

With a cost of living index of 70, Madison, MN is one of the most affordable cities in the country. Living here is 30% cheaper than the national average and 12% below the Minnesota state average of 82. Madison is a small community of 1,507 residents.

Housing costs are the biggest factor in Madison's cost of living. The median monthly rent is $920 (30% below the US median of $1,319), and the median home value sits at $104,600 (66% below the national median of $304,900). At current prices, the median home costs roughly 1.9x the median household income — well within traditional affordability guidelines.

The median household income in Madison is $56,435, which is 25% lower than the national median of $75,149. Residents spend roughly 20% 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.

Climate is another factor for anyone considering a move to Madison. The area sees an average annual temperature of 43°F, with summers averaging 69°F and winters around 15°F. Annual rainfall totals 22.7 inches spread over roughly 96 days. Cold winters mean higher heating bills, an important cost-of-living consideration.

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.