Rent vs Buy in Duluth, Minnesota

Average rent in Duluth in 2026

The typical Duluth rent is $1,575 per month, or $18,895 a year. That is 9% below the national typical rent, and rents here moved up (3.0%) over the past year. Against the median household income of $36,227, that rent takes about 52% of gross income, above the 30% rule of thumb.

Rent figure is the metro-level Zillow Observed Rent Index (ZORI), a typical asking rent across unit sizes; a specific one-bedroom or three-bedroom will sit below or above it. For rent by ZIP code and bedroom count, see average rent in Duluth.

What owning the median Duluth home costs per month

At the $241,512 median price, a buyer putting 20% down ($48,302) and financing the rest at 6.5% on a 30-year fixed loan pays about $1,720 a month all-in, versus $1,575 to rent. That is $146 a month more than renting, before counting the equity the owner builds or the return a renter could earn on the down payment.

Assumptions: 30-year fixed at 6.5%, insurance 0.35% and maintenance 1% of price per year, PMI 0.5% of the loan when the down payment is under 20%. Change any of them in the buy vs rent calculator, which also models appreciation, rent growth, taxes, and what the down payment earns if invested.

Duluth price-to-rent ratio: 12.8

Price-to-rent divides the median home price by a year of median rent: $241,512 ÷ $18,895 = 12.8. Put differently, buying the median home costs about 13 years of rent up front. Ratios under 15 usually favor buying, 15 to 20 is a toss-up, and above 20 the math tilts toward renting and investing the difference. The national ratio is about 19.4, so Duluth is cheaper to buy relative to rents than the typical US market.

The ratio is a screen, not a verdict. It ignores mortgage rates, property tax, how long you stay, and what home prices and rents do next, which is why the verdict above comes from the full model and not from this one number.

What would change the answer in Duluth

• Mortgage rates. A one-point drop from 6.5% to 5.5% cuts the 20%-down payment by $124 a month, to $1,596 all-in.
• How long you stay. The model's break-even in Duluth is about 4 years. Sell earlier and transaction costs (typically 6 to 8% of the price, or $16,906 here) swamp the equity you built.
• Price growth versus rent growth. Over the past year Duluth prices moved 6.0% and rents 3.0%. Prices outrunning rents makes buying dearer each year you wait, but also stretches the price-to-rent ratio further into renting territory.
• Down payment size. Going from 20% to 10% down adds $243 a month in payment and PMI, but keeps $24,151 in your pocket to invest or hold as reserves.