Cost of Living in Dakota County, Minnesota
At a Glance
Rent burden measured as median gross rent as a percentage of renter household income (Census ACS B25071)
How Dakota County Compares
Median monthly rent comparison
Detailed Housing Stats
National Ranking
Affordability Rank
Dakota County ranks #2,284 of 3,144 counties for affordability (bottom 27%)
Data Story
About Cost of Living in Dakota County, Minnesota
Dakota County's housing costs rank steep nationally
Dakota County's 17.1% rent-to-income ratio ranks among the nation's most expensive, despite a robust median income of $105,212 that exceeds the national average by $30,457. Renters pay $1,497 monthly—substantially above national norms—reflecting the county's position as Minnesota's southern metro.
Minnesota's priciest housing county overall
Dakota County leads Minnesota in housing costs relative to income, with a 17.1% rent-to-income ratio and $1,497 median rent far above the state average of 14.5% and $915. Its $362,100 median home value is the highest among all surveyed Minnesota counties, reflecting Twin Cities metro dynamics.
Dakota towers over rural Minnesota peers
Dakota's $1,497 rent and $362,100 home values dwarf those of surrounding rural counties like Dodge ($1,007 rent, $267,500 home) and Douglas ($896 rent, $291,700 home). The gap reflects Dakota's status as an affluent metro suburb with sustained demand and limited inventory.
Housing consumes 17.1% to 19.4% of income
Renters allocate $1,497 monthly while homeowners spend $1,696 on a $105,212 median income—17.1% and 19.4% respectively. Despite higher absolute income than elsewhere in Minnesota, Dakota residents devote a larger percentage to housing, compressing other budget categories.
Dakota offers metro access at a premium
Dakota County appeals to dual-income households seeking suburban stability, excellent schools, and proximity to Twin Cities jobs—but expect to pay top dollar. Expect $1,497 for rent or $362,100 for a home, trading affordability for urban connectivity.
Cost of Living Advisory: Dakota County
Affordability Verdict
Dakota County is affordable for renters, with a median gross rent of $1,497/month representing approximately 17.1% of median household income. The rent burden (GRAPI) stands at 29.0%.
Rent vs. Own
Renters in Dakota County pay $1,497/month on average, compared to $1,696/month for homeowners. This market favors renters by about 12%.
Income Needed
To afford the median rent without exceeding 30% of gross income, a household needs to earn approximately $59,880/year. For owner costs at the 28% rule, the required income is roughly $72,686/year. With a median household income of $105,212, most households can comfortably afford rent here. Notably, 29.0% of renter households in Dakota County are cost-burdened, spending more than 30% of income on housing.
Regional Context
Compared to Carver County where rent averages $1,444/month, Dakota County is approximately 4% more expensive.
Affordability Calculator
See how your income compares to housing costs in Dakota County
Rent Burden
17.1%
of gross income
Max Housing (28% Rule)
$2,455
per month
Owner Cost Burden
19.3%
of gross income
The median home in Dakota County may be a stretch
Median home value is $362,100. Estimated monthly cost: $2,891 vs. your max of $2,455.
Rent Affordability Guide
Income Needed Calculator
See how much you need to earn to comfortably afford housing
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Based on the 30% rule for rent and 28% rule for housing costs (mortgage + owner costs). Mortgage estimate assumes 20% down, 7.2% interest, 30-year fixed.
Frequently Asked Questions
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See Today's RatesData: U.S. Census Bureau, American Community Survey (ACS) 5-Year Estimates (2019-2023) — Informational only. Not financial or legal advice.
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