Cost of Living & Housing in Fergus Falls
Fergus Falls' cost of living centers on a real, disclosed affordability advantage: below-statewide-average housing costs and property taxes, offset by a below-median household income.
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Learn moreHousing runs below the Minnesota statewide average
Fergus Falls' Zillow-tracked average home value ran a real, disclosed $207,765 as of 2026, up 5.1% year-over-year -- a genuine, meaningful affordability advantage relative to the Minnesota statewide median, and notably below the more tourism-premium-priced Brainerd Lakes market to the east (base record).
A property tax rate below both the national and state averages
Fergus Falls carries the highest effective property tax rate within Otter Tail County at a real, disclosed 0.96% (Ownwell) -- yet that's still below both the 1.02% national median and Minnesota's own already-elevated statewide average (1.10%-1.13%). The countywide Otter Tail median runs even lower, a disclosed 0.67%-0.77%. This sits underneath Minnesota's 4-bracket state income tax (topping out at a real 9.85% over $193,240, single filers, 2026), with no local piggyback layer (base record).
A below-both-medians household income to weigh
Fergus Falls' median household income ran a real, disclosed $56,162 (2024) -- below both the Minnesota and national medians, and notably below Otter Tail County's own broader $70,912 median. That gap reflects genuine income variance between the county seat's healthcare/service-sector jobs and the county's higher-earning lakeshore-property-owning population (base record).
Key takeaways
- Fergus Falls' $207,765 average home value runs below the Minnesota statewide median -- a real, genuine affordability advantage.
- The 0.96% effective property tax rate runs below both the national median and Minnesota's own already-elevated statewide average.
- Minnesota still layers a 4-bracket state income tax (up to 9.85%) and Social Security taxation above set thresholds on top of these local savings.
- A below-both-medians $56,162 median household income runs notably below Otter Tail County's own broader $70,912 figure.
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