Cost of Living in Princeton, MN

With a cost of living index of 83, Princeton, MN is a very affordable place to live. Living here is 17% cheaper than the national average and in line with the Minnesota state average. Princeton is a small community of 4,988 residents.

Housing costs are the biggest factor in Princeton's cost of living. The median monthly rent is $953 (28% below the US median of $1,319), and the median home value sits at $212,200 (30% below the national median of $304,900). At current prices, the median home costs roughly 4x the median household income — a moderately affordable ratio by today's standards.

The median household income in Princeton is $52,450, which is 30% 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.

Climate is another factor for anyone considering a move to Princeton. The area sees an average annual temperature of 42.9°F, with summers averaging 68°F and winters around 15°F. Annual rainfall totals 28.5 inches spread over roughly 111 days. Cold winters mean higher heating bills, an important cost-of-living consideration.

Everyday prices in the Minneapolis-St. Paul-Bloomington, MN-WI (Metropolitan Statistical Area) metro area tend to run above the national average. Out of 6 common grocery and utility items tracked by the Bureau of Labor Statistics, 5 are priced higher than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

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.