Is it cheaper to live in Bozeman or Rochester?

Rochester, MN is cheaper. Its monthly baseline of $1,290 (1BR rent + utilities) runs about 5% below Bozeman, MT's $1,360, mainly because of rent.

How much more do you need to earn to live in Bozeman than in Rochester?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Bozeman versus $44,000 in Rochester.

Which has lower taxes, Bozeman or Rochester?

Bozeman is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Rochester under Minnesota's (a top state income tax rate of 9.85% and a 6.875% state sales tax).

Bozeman vs Rochester Cost of Living 2026

Bozeman

Montana

$1,360/mo est.

Rochester

Minnesota

$1,290/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,360 in Bozeman, MT versus $1,290 in Rochester, MN. Overall, Rochester, MN is roughly 5% cheaper to live in day-to-day than Bozeman, MT, driven mainly by rent.

Median household income is $79,903 in Bozeman, MT and $87,767 in Rochester, MN — about 9% higher in Rochester, MN. Montana has a top state income tax rate of 5.65% and no state sales tax; Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.

Bozeman, MT

Rochester, MN

Rent

Studio

$1,064

$1,080

+2% in Rochester, MN

1 Bedroom

$1,214

$1,106

+9% in Bozeman, MT

2 Bedroom

$1,528

$1,243

+19% in Bozeman, MT

3 Bedroom

$2,057

$1,646

+20% in Bozeman, MT

Buying a Home

Median Home Value

$614,900

$287,500

+53% in Bozeman, MT

Income

Median Household Income

$79,903

$87,767

+10% in Rochester, MN

Metro Median Wage (annual)

$54,830

$60,620

+11% in Rochester, MN

People & Lifestyle

Median Age

28.6 yr

36.4 yr

+7.8 yr in Rochester, MN

Homeownership

44.6%

65.4%

+20.8 pp in Rochester, MN

Bachelor's+ (25+)

65.1%

50.1%

+15.0 pp in Bozeman, MT

Avg Commute

15.4 min

17.2 min

+1.8 min in Rochester, MN

Crime (per 100k/yr)

Violent Crime

451.2

158.9

+65% in Bozeman, MT

Property Crime

1,808.3

1,379

+24% in Bozeman, MT

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

45.3°F

45.4°F

+0.1°F in Rochester, MN

Annual Precipitation

14.0 in

33.0 in

+19.0 in in Rochester, MN

Gas

Regular Gasoline

$4.27/gal

$3.96/gal

+7% in Bozeman, MT

Area: Rocky Mountain (PADD 4) vs Minnesota.

Utilities

Electricity (¢/kWh)

15.1

17.5

+16% in Rochester, MN

Natural Gas ($/MCF)

$10.12

$14.79

+46% in Rochester, MN

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.82

$4.31

+10% in Bozeman, MT

Bread (lb)

$2.04

$1.66

+19% in Bozeman, MT

Eggs (doz)

$2.19

$3.63

+66% in Rochester, MN

Ground Beef (lb)

$7.36

$6.77

+8% in Bozeman, MT

Chicken (lb)

$2.01

$2.10

+4% in Rochester, MN

Bananas (lb)

$0.70

$0.62

+12% in Bozeman, MT

Average prices — West vs Midwest (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MT / MN)

None

6.875%

+6.9 pp in MN

Income Tax (top rate)

5.65%

9.85%

+4.2 pp in MN

Bozeman vs Rochester — FAQ

Is it cheaper to live in Bozeman or Rochester?: Rochester, MN is cheaper. Its monthly baseline of $1,290 (1BR rent + utilities) runs about 5% below Bozeman, MT's $1,360, mainly because of rent.
How much more do you need to earn to live in Bozeman than in Rochester?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Bozeman versus $44,000 in Rochester.
Which has lower taxes, Bozeman or Rochester?: Bozeman is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Rochester under Minnesota's (a top state income tax rate of 9.85% and a 6.875% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).