Minnesota · 207th largest metro area

Buying a home in Rochester, Minnesota

In Rochester, the median value of owner-occupied homes is $310,500, Olmsted County's effective property tax rate is 1.06%, a purchase mortgage carried a median $5,233 in total loan costs in 2025, and median gross rent is $1,399 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Rochester home costs, fact by fact

About Rochester

The median gross rent is $1,399 per month, and 65.1% of homes are owner-occupied.

Reading the Rochester figures

Rochester is the home-ownership story among the three Minnesota cities covered: 65.1% of households own, while Minneapolis shows 47.7% and St. Paul 52.9%. Its $310,500 value sits below the statewide $353,800, above St. Paul's $294,500, and under Minneapolis's $362,200.

Rent is $1,399 a month, a touch higher than Minneapolis (rent $1,371) and St. Paul ($1,281). The county layer is Olmsted County: a 1.06% rate gives $3,525 a year, and its median value is $331,700. HUD's figure for the Rochester area is $1,422, only a little above the city rent, so benchmark and census barely disagree here. Across 1,636 loans in 2025 the middle cost was $5,233, and most fell between $4,100 and $7,000.

Calculate for Minnesota

If you buy

Minnesota state transfer tax

State deed tax (Minn. Stat. 287.21): 0.33% of net consideration when over $3,000; flat $1.65 for $3,000 or less. Change the price: the amount is recalculated instantly.

Price$353,800
State transfer tax$1,167.54
Share of the price0.33% of the price
Who paysThe seller

Default price: the Minnesota median value of owner-occupied homes, $353,800 (Census ACS 2025). Rule: 0.33% of net consideration (price minus any lien or mortgage that stays on the property) when consideration is over $3,000. A flat $1.65 applies to consideration of $3,000 or less, no consideration, and certain mergers and designated transfers. Who pays: The grantor is liable for the deed tax (287.24), so by law the seller owes it. The mortgagor (borrower) is liable for the mortgage registry tax (287.035). A purchase agreement may shift costs between the parties. Not included: county and city transfer taxes, the tax on the mortgage, recording fees, title insurance and lender charges. Minnesota transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Minnesota state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Rochester

How much is property tax in Rochester?

Homeowners in Olmsted County pay a median $3,525 a year in property tax, 1.06% of the county median home value of $331,700 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Rochester?

Home-purchase mortgages in Olmsted County carried median total loan costs of $5,233 in 2025; half of the 1,636 loans fell between $4,100 and $7,000 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Rochester?

Minnesota calls its transfer tax a deed tax: 0.33% of the net consideration when a deed is recorded, plus a mortgage registry tax of 0.23% of a new loan. Hennepin County adds 0.01% to each. By law the seller owes the deed tax and the borrower the mortgage tax.

Is it cheaper to rent or buy in Rochester?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Rochester ($310,500) equals 18.5 years of the median gross rent ($1,399 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Minnesota rules that apply in Rochester

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Sources

Minnesota · All states · Federal guides