C
6%
Overall NAT. AVG.
9%
Goods & Services NAT. AVG.
10%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Buffalo Minnesota National
Cost of living10699100
Goods & Services109100100
Groceries9798100
Health care124109100
Housing110100100
Transportation9997100
Utilities9393100

An Overview of Cost of Living in Buffalo, MN

Understanding the cost of living in Buffalo can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Buffalo cost of living index is 106, which is 6% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

Everyday expenditures like food, housing, goods and services, transportation and health care in Buffalo are priced in a manner consistent with other areas. This means that residents of Buffalo can anticipate their daily expenses remaining reasonably similar to those in an average city, thereby supporting a manageable cost of living.

Is Buffalo Affordable?

Is Buffalo an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Buffalo is 12% higher than the national average, while the average monthly rent prices are 6.3% higher than average. The affordability of any location can also be influenced by median income levels. Buffalo has a median household income of $68,371, which is 23.6% higher than the national average.

What Factors can Influence the Cost of Living in Buffalo?

Utilities: Like everything else, utilities costs can range significantly depending on factors like climate, energy sources available, location and even state regulations. Things like electricity, water, heating and waste disposal costs can be higher or lower, depending on the city or state. The utilities index in Buffalo comes in at 6.8% lower than the national average.

Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In Buffalo, healthcare costs are 24.3% higher than the national average.

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Buffalo, the general sales tax rate starts at 6.875%, and income tax rates begin at 5.35%.

Where is the Data From?

The cost of living data in Buffalo displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in Buffalo is 7% higher than the Minnesota average
  • The cost of living in Buffalo is 6% higher than the national average
  • Buffalo housing is 10% higher than the national average
  • Minnesota general sales tax is 35% higher than the national average
  • Minnesota state income tax is 106% higher than the national average

Most Affordable Places to Live in and Around Buffalo

See all the best places to live around Buffalo

Compare Buffalo, MN Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$92,983$7,749$2,169$2,790
      Renters$35,721$2,977$833$1,072
      The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Buffalo, MN, as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Buffalo homeowners, is $92,983. This would allow for a maximum of $2,169 per month to be spent on housing costs. For renters, the median monthly income is $35,721 which would result in a maximum of $833 to be spent on rental costs.

      Minnesota Sales Tax

      State General Sales Tax With Max Surtax
      Minnesota 6.875% 7.875%

      Minnesota Income Tax

      State Income Tax (Low) Income Tax (High)
      Minnesota 5.35% 9.85%

      Goods & Services

      Item Buffalo National avg. Difference
      Haircut $27.97$24.2615.3%
      Beauty Salon $37.17$45.5618.4%
      Toothpaste $3.62$3.702.2%
      Shampoo $1.52$1.2818.6%
      Movie $11.24$12.137.4%
      Bowling $26.39$18.0046.6%

      Groceries

      Item Buffalo National avg. Difference
      Ground Beef $5.75$5.841.5%
      Fried Chicken $1.35$1.5713.9%
      Milk $4.58$4.672.0%
      Potatoes $4.86$4.931.4%
      Pizza $13.07$12.098.2%
      Beer $9.52$10.418.5%

      Health Care

      Item Buffalo National avg. Difference
      Optometrist $109.94$125.6812.5%
      Doctor $162.98$135.7820.0%
      Dentist $96.90$113.2914.5%
      Ibuprofen $10.88$10.652.1%
      Lipitor $492.95$468.605.2%

      Housing

      Item Buffalo National avg. Difference
      Home Price $206,800.00$184,700.0012.0%
      Avg. Mortgage Payment $1,954.72$2,346.6916.7%
      Apartment Rent $1,009.00$949.006.3%

      Transportation

      Item Buffalo National avg. Difference
      Gasoline $3.31$3.464.3%
      Tire Balancing $61.97$59.923.4%

      Utilities

      Item Buffalo National avg. Difference
      All Electricity $175.69$193.999.4%
      Phone $188.55$192.251.9%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Maple Lake, MN2,162991.0%
      Annandale, MN3,420990.6%
      Howard Lake, MN1,8971000.2%
      Silver Creek, MN1971022.1%
      Becker, MN4,9191032.9%
      Buffalo, MN16,4131065.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Palmetto Estates, FL16,41911817.9%
      Vincent, CA16,40514847.9%
      Ammon, ID16,4031000.4%
      East Riverdale, MD16,39512322.7%
      Troutdale, OR16,43312525.5%
      Buffalo, MN16,4131065.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.