Cost of Living in Rochester, MN
Rochester costs about the same as the national average.
What Things Cost
Compared to the US average (100)
Census ACS 2024
Census ACS 2024
BEA RPP 2023
BEA RPP 2023
Rochester at a Glance
On the median income of $90,020, state income tax is roughly $8,867/year.
Sources: Census ACS 2024, Tax Foundation.
Rochester is a city built around the Mayo Clinic, one of the most prestigious medical institutions in the world. The economy, culture, and daily life revolve around world-class healthcare. The cost of living is about 4% below the national average despite the concentration of high-paying medical jobs. The median home price of about $280,000 is remarkably modest for a city with this level of medical employment.
How People Get Around
Source: Census ACS 2024.
Who Lives Here
Source: Census ACS 2024.
Why People Move to Rochester
The Mayo Clinic is the reason people move here, and it is sufficient reason. Working at or near one of the world's best hospitals is a career-defining opportunity. The patient population brings a cosmopolitan mix to a small Minnesota city. Rochester has invested in its downtown (Destination Medical Center initiative). The school system is strong.
Neighborhoods
Downtown is being transformed by the Destination Medical Center development. Pill Hill near the hospitals has character. Southeast Rochester has newer development. For affordable options, the north and west sides offer lower prices.
Things to Consider
Minnesota's 9.85% top income tax rate is the city's biggest financial drawback. The city is small (125,000) and revolves around Mayo, which can feel limiting. Winters are brutally cold. The cultural scene is modest outside of the medical community. The nearest major city is Minneapolis (80 minutes north).
Frequently Asked Questions About Rochester
Yes. Mayo Clinic employs roughly 40,000 people in Rochester. The patient population, visiting physicians, and medical support ecosystem define the city's character. If you work in healthcare, it is a dream destination. If you do not, the career options are more limited.
Moderate. About 4% below the national average despite high-paying medical jobs. Median homes at $326,100 are accessible. Minnesota's 9.85% income tax is the main cost factor. For medical professionals, the purchasing power of Mayo salaries in Rochester's housing market is excellent.
Very cold. January averages about 23°F high and 5°F low. Wind chill values below minus 20 are common. Rochester gets about 50 inches of snow per year. The Mayo Clinic and downtown buildings are connected by a subway and skyway system, reducing outdoor exposure.