Buy vs Rent in Duluth, MN (2026)
Median home price $230K · 1BR rent $1,200/mo · Price-to-rent ratio 16.0x.
Median home price
$230K
1BR rent
$1,200/mo
Price-to-rent ratio
16.0x
Verdict
Neutral
Monthly cost of buying — 3 scenarios
30-year mortgage at 7% · Includes property tax, insurance, and maintenance estimates
| 3.5% down (FHA) | 10% down | 20% down (conventional) | |
|---|---|---|---|
| Down payment | $8,050 | $23,000 | $46,000 |
| Mortgage (P&I) | $1,477/mo | $1,377/mo | $1,224/mo |
| Property tax (est.) | $211/mo | $211/mo | $211/mo |
| Insurance (est.) | $96/mo | $96/mo | $96/mo |
| Maintenance (est.) | $192/mo | $192/mo | $192/mo |
| Total monthly cost | $1,976vs rent: +$776/mo | $1,876vs rent: +$676/mo | $1,723vs rent: +$523/mo |
| Income to qualify | $63,300/yr | $59,014/yr | $52,457/yr |
| Break-even (approx.) | ~1 yrs | ~3 yrs | ~7 yrs |
Duluth housing context
$54K
Median HH income
per year
$52,457
Income needed (20% down)
per year
Qualified
Affordability gap
vs median income
Frequently asked questions
Is it better to buy or rent in Duluth?
Duluth's price-to-rent ratio of 16.0x is in the neutral zone (15-20x). Whether to buy or rent depends on how long you plan to stay, your down payment, and your personal finances.
How much do I need to earn to buy a home in Duluth?
With a median home price of $230K in Duluth, you'd need an annual income of roughly $52,457 to qualify with 20% down (at 7% rate, 28% housing ratio). With 10% down, you'd need about $59,014/year.
Duluth full cost of living breakdownCheaper cities near DuluthHow much to retire in DuluthCompare mortgage rates
Mortgage at 7% 30-yr fixed · Property tax 1.1% est. · Maintenance 1% est. · Zillow, BLS · Q1 2026 · For general guidance only