Minnesota Military Retirement: Best Cities, Housing Costs & Quality of Life
Where to retire in Minnesota as a veteran: best cities ranked by benefits, housing costs, veteran population, and quality of life for 2025.
Minnesota Military Retirement: Best Cities, Housing Costs & Quality of Life
Minnesota ranks among the top states for veterans thanks to the property tax Market Value Exclusion for disabled veterans (up to $300,000), partial military retirement tax exemption, exceptional schools, and one of the strongest economies in the nation.
But where should you actually live? Minnesota's cities vary significantly in housing costs, job opportunities, weather severity, and access to VA healthcare.
This guide ranks Minnesota's best cities for veterans with real data on home prices, veteran populations, and quality of life factors.
Bottom Line Up Front
Best overall for veterans: Minneapolis/Twin Cities (jobs, healthcare, quality of life, but expensive) Best for affordability: Duluth, Mankato, St. Cloud Best for healthcare access: Minneapolis (VA medical center) and Rochester (Mayo Clinic) Best college town: St. Cloud (St. Cloud State, affordable) Best small-city balance: Rochester (Mayo Clinic employment, manageable size)
Median home price range: $185,000 (Duluth) to $465,000 (Minneapolis) State average: $355,000
Top 10 Best Cities for Veterans in Minnesota
1. Minneapolis/St. Paul - "Twin Cities"
Overall Grade: A
Why it's #1: Minneapolis and St. Paul offer the best combination of employment opportunities, VA healthcare access, cultural amenities, and quality of life in Minnesota, despite high housing costs.
Veteran Population
- Hennepin County (Minneapolis): 45,000+ veterans
- Ramsey County (St. Paul): 25,000+ veterans
- Combined metro: 90,000+ veterans
- Concentration: Moderate (lower percentage due to large overall population)
Housing Market
Minneapolis:
- Median home price: $465,000 (highest in Minnesota)
- Property tax with Market Value Exclusion: Significantly reduced (save $3,600-$5,500/year)
- Property tax without exemption: ~$5,580/year (1.2% effective rate)
- Rental costs: $1,400-$2,300/month for 2BR apartment
St. Paul:
- Median home price: $360,000
- Property tax without exemption: ~$4,680/year (1.3% rate)
- Generally more affordable than Minneapolis
- Rental costs: $1,200-$1,900/month
Suburbs (Bloomington, Edina, Eden Prairie, Minnetonka, Eagan, Burnsville):
- Median home price: $350,000-$600,000 depending on suburb
- Generally excellent schools and lower crime
Cost of Living
- Overall index: 108.5 (8.5% above national average)
- Housing: Above national average (but wages are higher)
- Utilities: Near national average
- Groceries: Slightly above national average
- Healthcare: Above average (but excellent quality)
Employment Opportunities
Fortune 500 Headquarters (18 in metro area):
- UnitedHealth Group (healthcare, 80,000+ MN employees)
- Target Corporation (retail, headquarters)
- 3M Company (manufacturing, technology)
- General Mills (food)
- Best Buy (retail, technology)
- U.S. Bank (financial services)
- Ameriprise Financial
- Land O'Lakes
- C.H. Robinson (logistics)
- Medtronic (medical devices)
- Ecolab (chemical, cleaning)
- Supervalu/United Natural Foods
Industries:
- Healthcare (dominant)
- Medical devices (world capital)
- Technology
- Financial services
- Retail corporate headquarters
- Manufacturing
- Food processing
Average household income: $85,000+ (Minneapolis), $75,000+ (St. Paul)
Unemployment: Consistently below national average (3-4%)
VA Healthcare Access
- Minneapolis VA Medical Center: One Veterans Drive, Minneapolis, MN 55417
- Phone: (612) 467-3000
- Services: Full-service hospital, 24/7 emergency care, comprehensive mental health, PTSD residential treatment, surgery
- Maplewood VA Clinic: Eastern metro (Ramsey County)
- Vet Centers: Minneapolis and St. Paul
This is Minnesota's premier VA facility with excellent access to specialty care.
Quality of Life
- Climate: Cold winters (-5 to 25°F), warm summers (70-85°F), four distinct seasons
- Outdoor recreation: 10,000+ lakes, extensive trails (bike, hike, ski), Mississippi River
- Culture: World-class arts (Guthrie Theater, Walker Art Center), music (Prince legacy), museums
- Sports: Vikings (NFL), Twins (MLB), Timberwolves (NBA), Wild (NHL), Minnesota United (MLS)
- Education: Excellent public schools in suburbs, University of Minnesota (2,000+ student veterans)
- Crime: Low in suburbs, moderate to high in some urban neighborhoods
- Economy: One of the strongest regional economies in the U.S.
- Diversity: Increasingly diverse, particularly Somali, Hmong, and Latino communities
Transportation
- Minneapolis-St. Paul International Airport (MSP): Major hub with direct flights worldwide
- Public transit: Light rail, buses (better than most Midwest cities)
- Biking: Excellent bike infrastructure (top 10 bike-friendly cities in U.S.)
Pros:
- Best VA healthcare in Minnesota
- Strongest job market in state (Fortune 500 headquarters)
- World-class culture and amenities
- Excellent schools (suburbs)
- Strong economy with veteran hiring
- Major airport hub
- Medical device industry actively recruits veterans
- Property tax exclusion saves $3,600+/year for 100% disabled
Cons:
- Highest housing costs in Minnesota ($465K Minneapolis, $360K St. Paul)
- High overall cost of living
- Brutal winters (-20°F wind chills common)
- Higher taxes overall (state + local)
- Some high-crime neighborhoods (research carefully)
- Traffic congestion growing
Bottom line: If you can afford the housing, the Twin Cities offer unmatched employment opportunities and quality of life. Target companies like UnitedHealth, Target, 3M, and Medtronic actively recruit veterans. The property tax exclusion for 100% disabled veterans saves thousands annually, helping offset higher costs.
2. Rochester - "Med City"
Overall Grade: A-
Why it ranks #2: World-renowned healthcare employment (Mayo Clinic), manageable size, excellent schools, strong economy, lower costs than Twin Cities.
Veteran Population
- Olmsted County veterans: 12,000+
- Concentration: Moderate
- Growing veteran community due to Mayo employment
Housing Market
- Median home price: $315,000
- Property tax with Market Value Exclusion: Significantly reduced (save $3,300+/year for 100% disabled)
- Property tax without exemption: ~$3,465/year (1.1% rate)
- Rental costs: $1,100-$1,700/month for 2BR
Cost of Living
- Overall index: 101.3 (1.3% above national average)
- Housing: Slightly above national average (but lower than Twin Cities)
- Healthcare: Above average (but access to Mayo)
- Groceries: Near national average
Employment Opportunities
Mayo Clinic dominates:
- Employees: 70,000+ worldwide (35,000+ in Rochester)
- Veteran programs: Values military healthcare experience
- Typical roles: Nursing, medical technicians, research, administration, facilities, IT
- Average salary: $50,000-$100,000 depending on role
- This is the world's premier medical center
Other major employers:
- IBM (technology center)
- University of Minnesota Rochester
- Walmart distribution
- Rochester Public Schools
Industries: Healthcare (95% connected to Mayo), technology, education
VA Healthcare Access
- Rochester VA Clinic: 5940 Corporate Drive NW, Rochester, MN 55901
- Phone: (507) 252-0885
- Services: Primary care, mental health, specialty clinics
- Closest VA Hospital: Minneapolis (1.5 hours north)
Note: While Rochester lacks a VA hospital, Mayo Clinic provides world-class healthcare. Many veterans use VA for primary care and Mayo for specialty care.
Quality of Life
- Climate: Cold winters (0-25°F), warm summers, slightly milder than Twin Cities
- Outdoor recreation: Parks, trails, lakes nearby, Whitewater State Park
- Culture: Growing arts scene, Mayo Civic Center events, family-friendly
- Education: Excellent public schools (top-rated in Minnesota)
- Crime: Very low (one of safest cities in Minnesota)
- Community: Professional, educated, stable
- Diversity: Growing international community due to Mayo
Pros:
- Mayo Clinic employment (best healthcare employer in world)
- Excellent schools and very safe
- Lower housing costs than Twin Cities
- Strong, stable economy
- International community
- Good work-life balance
- Property tax exclusion saves $3,300+/year
Cons:
- No VA hospital (must travel to Minneapolis for complex care)
- Limited job market outside healthcare
- Cold winters
- Smaller city (fewer entertainment options than Twin Cities)
- Mayo Clinic dominates everything (good or bad depending on perspective)
Bottom line: Rochester is ideal for veterans with healthcare experience or training who want Mayo Clinic employment. The city offers excellent quality of life, safety, and schools with lower costs than the Twin Cities. Perfect for families prioritizing stability and education.
3. Duluth - "Zenith City"
Overall Grade: B+
Why it ranks #3: Most affordable major city, beautiful Lake Superior location, strong veteran community, but limited jobs and harsh winters.
Veteran Population
- St. Louis County veterans: 20,000+
- Concentration: High (9-10% of adult population)
- Strong military culture and veteran community
Housing Market
- Median home price: $275,000
- Property tax with Market Value Exclusion: Significantly reduced (save $3,000+/year)
- Property tax without exemption: ~$3,300/year (1.2% rate)
- Rental costs: $900-$1,400/month for 2BR
- Most affordable Minnesota city with VA services
Cost of Living
- Overall index: 92.8 (7.2% below national average)
- Housing: Below national average
- Groceries: Near national average
- Utilities: Slightly above (heating costs in winter)
Employment Opportunities
Major employers:
- Essentia Health (8,000+ employees in region)
- St. Luke's Hospital
- University of Minnesota Duluth
- St. Louis County government
- Duluth Public Schools
- Cirrus Aircraft (aviation manufacturing)
- Port of Duluth (shipping, maritime)
Industries: Healthcare, education, shipping/maritime, tourism
Economic challenges: Duluth has faced economic decline but is recovering with tourism and healthcare growth.
Average salary: $52,000 (lower than Twin Cities)
VA Healthcare Access
- Duluth VA Clinic: 4402 Haines Road, Duluth, MN 55811
- Phone: (218) 723-7773
- Services: Primary care, mental health, telehealth, laboratory
- Vet Center: Duluth Vet Center for counseling
- Closest VA Hospital: Minneapolis (2.5 hours south) or St. Cloud (2 hours southwest)
Healthcare: Excellent civilian healthcare through Essentia and St. Luke's
Quality of Life
- Climate: Very cold winters (-10 to 20°F, lake effect), cool summers (60-75°F)
- Outdoor recreation: Lake Superior (stunning), hiking, skiing, mountain biking, kayaking, fishing
- Natural beauty: Among the most beautiful cities in Midwest
- Culture: Arts community, music scene, breweries
- Education: Good public schools, UMD
- Crime: Low to moderate
- Community: Tight-knit, outdoorsy, liberal arts vibe
Pros:
- Most affordable Minnesota city with VA clinic
- Stunning natural beauty (Lake Superior)
- Exceptional outdoor recreation
- Strong veteran community
- Safe and welcoming
- Property tax exclusion saves $3,000+/year
- Growing arts and culture scene
Cons:
- Very cold winters (coldest major city in Minnesota)
- Limited job market beyond healthcare/education
- No VA hospital (2.5 hours to Minneapolis)
- Economic challenges in some sectors
- Remote location (2.5 hours from Twin Cities)
Bottom line: Duluth is perfect for veterans prioritizing affordability, natural beauty, and outdoor recreation over employment opportunities. The strong veteran community and beautiful Lake Superior setting make it attractive for retirees or remote workers. Winters are brutal but manageable if you embrace winter activities.
4. St. Cloud - "Granite City"
Overall Grade: B+
Why it ranks #4: Affordable, VA health care campus, college town, central Minnesota location, growing economy.
Veteran Population
- Stearns, Benton, Sherburne counties: 15,000+ combined
- Growing veteran population
Housing Market
- Median home price: $280,000
- Property tax with Market Value Exclusion: Reduced (save $3,000+/year)
- Property tax without exemption: ~$3,360/year (1.2% rate)
- Rental costs: $900-$1,300/month
- Very affordable for a city with VA campus
Cost of Living
- Overall index: 91.5 (8.5% below national average)
- Housing: Below national average
- Overall: Very affordable
Employment Opportunities
Major employers:
- St. Cloud VA Health Care System (major employer)
- CentraCare Health (hospitals, clinics)
- St. Cloud State University (800+ student veterans)
- St. Cloud Public Schools
- Marco Technologies
- Electrolux
- GE Appliances
Industries: Healthcare, education, manufacturing, technology
VA Healthcare Access
- St. Cloud VA Health Care System: 4801 Veterans Drive, St. Cloud, MN 56303
- Phone: (320) 252-1670
- Services: Comprehensive outpatient and some inpatient care, primary care, mental health, surgery, specialty clinics
- This is a full VA campus, not just a clinic
This is a major advantage - St. Cloud has more comprehensive VA services than most Minnesota cities outside Minneapolis.
Quality of Life
- Climate: Cold winters, warm summers (similar to Twin Cities)
- Outdoor recreation: Mississippi River, lakes, trails
- Culture: College town atmosphere, growing arts scene
- Education: St. Cloud State University, good public schools
- Crime: Moderate (varies by neighborhood)
- Community: Diverse, college town feel
Pros:
- VA health care campus (not just clinic)
- Very affordable housing
- College town amenities
- Central Minnesota location (1 hour from Twin Cities)
- Growing economy
- Property tax exclusion saves $3,000+/year
Cons:
- Limited high-paying job market compared to Twin Cities
- Cold winters
- Some higher-crime areas
- Smaller cultural scene than Twin Cities
Bottom line: St. Cloud offers the best balance of VA healthcare access and affordability. The VA campus provides comprehensive services without Minneapolis traffic and costs. Ideal for veterans wanting central Minnesota location with easy Twin Cities access.
5. Bloomington - "Mall of America City"
Overall Grade: B+
Why it ranks #5: Twin Cities suburb with excellent schools, close to Minneapolis VA, major employers, but expensive.
Housing Market
- Median home price: $410,000
- Property tax with Market Value Exclusion: Reduced significantly
- Excellent schools and safety
Employment
- Mall of America (retail, tourism)
- Target headquarters (nearby)
- Minneapolis-St. Paul Airport (major employer)
- Healthcare systems
- Easy commute to all Twin Cities jobs
VA Healthcare Access
- 15 minutes to Minneapolis VA Medical Center
- Excellent access
Best for: Families wanting excellent schools with easy VA access and Twin Cities employment.
6. Mankato - "Greater Mankato"
Overall Grade: B
Why it ranks #6: Affordable college town, southern Minnesota location, growing economy.
Housing Market
- Median home price: $265,000
- Very affordable
Employment
- Minnesota State University, Mankato (700+ student veterans)
- Healthcare
- Manufacturing
- Education
VA Healthcare Access
- Mankato VA Clinic: 1250 East Adams Street
- Phone: (507) 385-5600
- Closest VA Hospital: Minneapolis (1.5 hours)
Best for: Veterans seeking affordable college town with VA clinic access.
7. Eden Prairie (Twin Cities Suburb)
Overall Grade: B
Why it ranks #7: Top-rated schools, very safe, corporate headquarters, but expensive.
Housing Market
- Median home price: $520,000 (very expensive)
Employment
- Corporate headquarters (Supervalu, C.H. Robinson)
- Technology companies
- Easy commute to Twin Cities jobs
Best for: High-income veteran families prioritizing schools and safety.
8. Woodbury (Twin Cities Suburb)
Overall Grade: B
Why it ranks #8: Fast-growing eastern suburb, good schools, newer development.
Housing Market
- Median home price: $440,000
Employment
- 3M nearby
- Healthcare
- Easy commute to St. Paul
Best for: Veterans wanting newer suburban development with good schools.
9. Moorhead - "Gateway to the West"
Overall Grade: B-
Why it ranks #9: Affordable, college town (Minnesota State Moorhead), North Dakota border.
Housing Market
- Median home price: $250,000
- Very affordable
Employment
- Minnesota State University Moorhead (350+ student veterans)
- Healthcare
- Education
- Fargo-Moorhead metro economy
VA Healthcare Access
- Fargo VA (across river in North Dakota)
Best for: Veterans wanting affordable living near Fargo-Moorhead metro.
10. Burnsville (Twin Cities Suburb)
Overall Grade: B-
Why it ranks #10: Southern Twin Cities suburb, affordable for metro, good location.
Housing Market
- Median home price: $370,000
- More affordable than western suburbs
Employment
- Easy commute to Twin Cities and Mall of America area
Best for: Veterans wanting Twin Cities access with slightly lower costs.
Housing Market Analysis
Median Home Prices by City (2025)
| City | Median Price | Property Tax (no exclusion) | Savings with $300K Exclusion |
|---|---|---|---|
| Eden Prairie | $520,000 | $6,240 | $3,600/year |
| Minneapolis | $465,000 | $5,580 | $3,600/year |
| Bloomington | $410,000 | $4,920 | $3,600/year |
| Woodbury | $440,000 | $5,280 | $3,600/year |
| Burnsville | $370,000 | $4,440 | $3,600/year |
| St. Paul | $360,000 | $4,680 | $3,900/year |
| Rochester | $315,000 | $3,465 | $3,300/year |
| St. Cloud | $280,000 | $3,360 | $3,000/year |
| Duluth | $275,000 | $3,300 | $3,000/year |
| Mankato | $265,000 | $3,180 | $2,900/year |
| Moorhead | $250,000 | $3,000 | $2,750/year |
State median: $355,000
Rental Market
2-bedroom apartment average rents:
- Minneapolis: $1,400-$2,300
- St. Paul: $1,200-$1,900
- Bloomington: $1,300-$2,000
- Rochester: $1,100-$1,700
- Duluth: $900-$1,400
- St. Cloud: $900-$1,300
- Mankato: $850-$1,200
- Moorhead: $800-$1,150
Affordability Analysis
Most affordable (low home prices, low cost of living):
- Moorhead
- Mankato
- Duluth
- St. Cloud
Best value (price vs. job market/quality of life):
- Rochester (Mayo employment)
- St. Cloud (VA campus, affordable)
- Duluth (natural beauty, affordable)
Least affordable (but highest wages):
- Eden Prairie
- Minneapolis
- Edina/western suburbs
Cost of Living Breakdown by City
Minneapolis/St. Paul
- Housing: 108-115 (8-15% above national)
- Groceries: 103
- Healthcare: 105
- Utilities: 98
- Transportation: 102
- Overall: 108.5
Rochester
- Housing: 102
- Groceries: 100
- Healthcare: 104
- Utilities: 97
- Transportation: 98
- Overall: 101.3
Duluth
- Housing: 85 (15% below national)
- Groceries: 99
- Healthcare: 95
- Utilities: 102
- Transportation: 90
- Overall: 92.8
St. Cloud
- Housing: 83
- Groceries: 97
- Healthcare: 92
- Utilities: 99
- Transportation: 92
- Overall: 91.5
Minnesota state average: 99.1 (about equal to national average)
Climate and Weather Considerations
Overall Minnesota Climate
- Winters: Very cold to brutal (0 to -20°F common, wind chills to -40°F)
- Summers: Warm to hot (75-90°F)
- Snowfall: 40-100+ inches annually
- Seasons: Four very distinct seasons
By Region
Twin Cities (Minneapolis/St. Paul)
- Cold winters (0-25°F typical)
- 50-60 inches of snow annually
- Warm, sometimes humid summers (80-90°F)
- Spring and fall are beautiful but short
Southern Minnesota (Rochester, Mankato)
- Slightly milder winters (5-30°F)
- Less snow than northern Minnesota (40-50 inches)
- Hotter summers
Northern Minnesota (Duluth)
- Very cold winters (-10 to 20°F)
- Lake effect snow (80-100 inches)
- Cool summers (60-75°F) - most comfortable
- Beautiful fall colors
Western Minnesota (Moorhead)
- Very cold winters with prairie winds
- Less snow but brutal wind chills
- Hot summers
Veteran Health Considerations
Extreme cold: Minnesota winters are among the coldest in the continental U.S. Veterans with cold-weather injuries, circulation issues, or respiratory conditions should consider this carefully.
Heating costs: Winter heating bills can be significant, especially in older homes.
Seasonal Affective Disorder (SAD): Long, dark winters can affect mental health. VA provides mental health services and light therapy.
Benefits of cold: Excellent for veterans who dislike heat and humidity. Summers are comfortable with low humidity most days.
Veteran Community Strength
Counties with Highest Veteran Concentration
- Hennepin County (Minneapolis): 45,000+ veterans
- Ramsey County (St. Paul): 25,000+ veterans
- Dakota County: 25,000+ veterans
- St. Louis County (Duluth): 20,000+ veterans
- Anoka County: 18,000+ veterans
VFW and American Legion Posts
Most posts: Twin Cities metro area
Veterans Day events: Major celebrations in Minneapolis, St. Paul, Rochester, Duluth
Veteran Organizations
- American Legion: 500+ posts statewide
- VFW: 400+ posts
- DAV: Chapters in all major cities
- Vietnam Veterans of America: Multiple chapters
- AMVETS: Posts throughout Minnesota
Quality of Life Factors
Recreation
Best outdoor recreation:
- Twin Cities: 10,000+ lakes, extensive trail systems, Mississippi River
- Duluth: Lake Superior, hiking, skiing
- Boundary Waters: World-class wilderness (northeastern Minnesota)
Best for fishing: Entire state (Minnesota is fishing paradise)
Best for hunting: Northern and central Minnesota
Best for winter sports: Duluth, northern Minnesota
Culture and Entertainment
Best food scenes: Minneapolis (excellent), St. Paul, Rochester (growing) Best music: Minneapolis (Prince, Bob Dylan legacy) Best museums: Minneapolis (Walker Art Center, Minneapolis Institute of Art) Best theater: Minneapolis (Guthrie Theater)
Education (for families)
Best school districts:
- Eden Prairie
- Wayzata
- Edina
- Minnetonka
- Rochester
- Stillwater
Best universities:
- University of Minnesota - Twin Cities (2,000+ student veterans)
- St. Cloud State (800+ student veterans)
- Minnesota State, Mankato (700+ student veterans)
Healthcare Access
Best overall healthcare:
- Rochester (Mayo Clinic - world's best)
- Minneapolis/St. Paul (University of Minnesota, multiple systems)
Best VA access:
- Minneapolis (VA Medical Center)
- St. Cloud (VA Health Care System campus)
Transportation
Airports:
- Minneapolis-St. Paul International (MSP) - major hub
- Rochester International - growing service
- Duluth International - limited service
Public transit: Light rail and buses in Twin Cities (better than most Midwest cities)
Decision Matrix: Which City is Right for You?
Choose Minneapolis/St. Paul if:
- You want the best job opportunities (Fortune 500)
- VA medical center access is important
- You value cultural amenities and diversity
- You can afford $360K-$465K homes
- You want a major airport hub
- Medical device or healthcare industry employment
Choose Rochester if:
- Mayo Clinic employment interests you
- You want excellent schools and safety
- You prefer mid-sized city over major metro
- Healthcare is your career field
- You want lower costs than Twin Cities
Choose Duluth if:
- Affordability is critical
- You love outdoor recreation and natural beauty
- You can handle very cold winters
- You want a strong veteran community
- Job market isn't primary concern (or you're retired/remote)
Choose St. Cloud if:
- You want VA campus access with affordability
- Central Minnesota location appeals
- College town atmosphere is attractive
- You want easy Twin Cities access without living there
Choose Suburbs (Bloomington, Eden Prairie, Woodbury) if:
- Excellent schools are #1 priority
- Safety and low crime are critical
- You have high income
- You work in Twin Cities but want suburban life
Key Takeaways
- Twin Cities lead for employment - 18 Fortune 500 headquarters, strongest economy
- Rochester leads for healthcare jobs - Mayo Clinic is world's premier medical employer
- Duluth leads for affordability - Beautiful Lake Superior setting, low cost of living
- St. Cloud offers best balance - VA campus + affordability + central location
- Property tax exclusion for disabled veterans saves $2,750-$3,900 annually
Minnesota offers exceptional quality of life with excellent schools, low crime, and strong economy. The trade-offs are high housing costs (Twin Cities) and brutal winters (statewide).
The best city for you depends on your priorities: jobs and culture (Twin Cities), healthcare employment (Rochester), affordability and beauty (Duluth), or balanced value (St. Cloud).
Additional Resources
- Minnesota Department of Veterans Affairs: 1-888-546-8742 | mn.gov/mdva
- Housing market data: Zillow.com/MN, Realtor.com/Minnesota
- Cost of living calculators: BestPlaces.net
- Job search: mn.gov/deed
- VA facility locator: VA.gov/find-locations
Information current as of January 2025. Housing prices and market conditions change frequently - verify current prices before making decisions.