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Houston County, MN

Rent vs Own in Houston County, Minnesota

HUD prices a 2-bedroom in Houston County at $1,166/mo while the ownership stack lands near $1,508/mo. That mid-sized gap is large enough that rate or down-payment tweaks usually cannot close it alone. Owner-occupied homes: 6,782.

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Renting is cheaper in Houston County

A 2-bedroom rental here runs $1,166/mo, meaningfully below the $1,508/mo ownership stack on the default assumptions. That is a $342/mo difference.

Based on 20% down, 6.5% rate, 30-year mortgage. Adjust below.

What This Data Tells Us About Renting vs Owning in Houston County

Primary driver

Income supports the median purchase price

Median household income is $79,825, and the 3.0x home-price-to-income ratio leaves room for the ownership stack (property tax alone is 3.5% of median income). The monthly gap above is more about mortgage rate and insurance assumptions than about the purchase price being out of reach.

Decision signal 2

Renting wins by a mid-sized monthly gap

Houston County lists a $239,000 median home with $2,756/yr property tax (1.15%). HUD's $1,166/mo 2-bedroom rent undercuts the ~$1,508/mo ownership stack by a mid-range margin of about $342/mo. Closing that gap usually takes more than a cosmetic rate tweak, price, tax load, or both.

Decision signal 3

HUD moved the rent benchmark down

HUD cut its 2-bedroom Fair Market Rent for Houston County from $1,197/mo in FY2025 to $1,166/mo in FY2026: it decreased by $31/mo (-2.6%). A falling benchmark narrows the case for buying here, and it usually reflects HUD re-estimating the local market rather than existing rents being cut.

Decision signal 4

The county sits near the state middle

Using the assumptions above, Houston County ranks 47 of 87 Minnesota counties for buy-vs-rent value (rank 1 = the best relative deal for buying). It sits ahead of 40 other Minnesota counties on this measure.

Methodology & disclaimer

This calculator is for informational purposes only and is not tax, legal, or financial advice. Property tax figures come from the U.S. Census Bureau ACS 5-Year Estimates and rent figures come from HUD Fair Market Rents; both describe area medians, not individual transactions. Insurance is estimated at 0.35% of home value annually and closing costs, maintenance, HOA, and PMI are not included. Consult a licensed mortgage, tax, or real-estate professional before making a buy-or-rent decision based on these numbers.

Monthly Cost Breakdown

Estimated Monthly Ownership
$1,508
Mortgage (P&I) $1,209
Property Tax $230
Insurance (est.) $70
Monthly Rent (2-BR FMR)
$1,166
Studio$804
1-Bedroom$889
2-Bedroom$1,166
3-Bedroom$1,515
4-Bedroom$1,903

Adjust Your Scenario

Affordability Context

Median Household Income
$79,825
$6,652/mo
Home Price / Income
3.0x
Affordable (≤3x)
Tax-to-Income Ratio
3.5%
National benchmark: 2-4%

Who actually pays it here

Even with the loan gone, the largest group of Houston County owners still owes $3,000 or more every year - a recurring holding cost of a few hundred dollars a month, which is why "paid off" understates the real cost of keeping property here.

Houston County matches the national pattern: six-figure earners between $100,000 and $200,000 account for more of these write-offs than any other local group.

With ownership already mid-range more expensive than rent month-to-month, that annual bill reinforces why cash-flow renters stay put unless they are deliberately buying for tenure rather than monthly savings.

Bill bands are Census ACS counts of owner-occupied homes without a mortgage. Income brackets are IRS Statistics of Income county data for tax year 2022, counted over FILERS reporting real-estate taxes on Schedule A, which is a smaller group than homeowners: most filers take the standard deduction.

Nearby Counties

Hennepin County
Home: $392,900 Tax: $4,480/yr
Ramsey County
Home: $326,600 Tax: $3,966/yr
Dakota County
Home: $381,000 Tax: $3,749/yr
Anoka County
Home: $346,500 Tax: $3,271/yr
Washington County
Home: $422,000 Tax: $4,164/yr
St. Louis County
Home: $221,400 Tax: $2,271/yr

Frequently Asked Questions

What is the average rent in Houston County? ▼
HUD prices a 2-bedroom unit at $1,166/mo here. Sizing up matters: going from a studio to a 4-bedroom adds about $1,099/mo, so the per-bedroom jump is worth checking against your actual space needs before assuming the 2-BR figure applies to your situation.
Is it cheaper to rent or buy in Houston County, Minnesota? ▼
Renting the HUD 2-bedroom is the clearer monthly path in Houston County by roughly $342/mo under default loan assumptions. Closing a gap this size usually needs a meaningfully lower price or rate, not a cosmetic tweak.
How much house can you afford in Houston County? ▼
On the common 3x-income guideline, a $79,825 household here can afford up to $239,475, which comfortably covers this county's $239,000 median home price -- a healthier affordability picture than many of the counties tracked on this site.
What is the median home price in Houston County? ▼
$239,000, per the Census Bureau's ACS 5-Year Estimates. The property tax on that value works out to roughly 1.15% a year, in line with typical rates for the area.
Is rent going up or down in Houston County? ▼
HUD's 2-bedroom Fair Market Rent figure has fallen 2.6% between the FY2025 and FY2026 publications, the two most recent years tracked here.
How does Houston County compare to other Minnesota counties for renting vs buying? ▼
Out of 87 Minnesota counties ranked here on buy-vs-rent value, Houston County lands at spot 47, roughly in the middle of the pack statewide. The <a href="/states/minnesota">Minnesota state page</a> lists every peer county's tax bill beside this one.

Read our methodology - how this data is sourced, computed, and verified.

Data sourced from the U.S. Census Bureau (American Community Survey). See our methodology for details. Retrieved and formatted by PlainPropertyTax

Source: U.S. Census Bureau, Government Finances State and local property tax revenue by jurisdiction · 2025

Verify with HUD →