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City · 26,498 residents · Steele County, Minnesota

Owatonna , Minnesota

In Owatonna, a typical home is worth $245,200 and typical rent is $1,067 a month. Home values, rent and income are very close to those of all of Steele County.

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  • Typical home value

    $245,200

    About the same as the county

    26% below Minnesota

    • Owatonna
    • Steele
    • Minnesota

  • Typical rent

    $1,067a month

    About the same as the county

    17% below Minnesota

    • Owatonna
    • Steele
    • Minnesota

  • Typical household income

    $80,750a year

    4% below the county

    9% below Minnesota

    • Owatonna
    • Steele
    • Minnesota

  • Households that own their home

    76%

    4 points below the county

    3 points above Minnesota

    • Owatonna
    • Steele
    • Minnesota

Source: U.S. Census Bureau, Average 2020–2024

Market now, with Zillow data

Zillow data
Typical home value
$295,050
1.7% more than 12 months ago
Typical rent
$1,081 a month

From Zillow (ZHVI/ZORI), September 2026. The Census figures above are 5-year averages (2020–2024).

Owatonna is in Steele County. The FHA loan limit ($541,287 for a one-unit home), the fair market rents and the help on this page are those of all of Steele County. See the county

Data updated: October 1, 2026 11 official sources

Only here

What sets Owatonna apart

What this place has that others do not, from public data, most unusual first.

  1. Owatonna has the 8th largest share of rent-burdened renters of the 139 cities in Minnesota with more than 5,000 people (65%).

  2. Nearby, in Waseca, the typical home value is $189,200: 23% less than in Owatonna ($245,200).

  3. Nearby, in Waseca, the typical rent is $903: 15% less than in Owatonna ($1,067).

Sources: U.S. Census Bureau (Average 2020–2024).

The homes here

Housing in Owatonna

What homes there are in Owatonna, what they cost, how that changed and how people live, from Census figures (2020–2024).

What homes there are

U.S. Census Bureau, ACS 5-year, 2020–2024

Kind of home

The detached house is still the most common home in Owatonna, but it weighs less than in Steele County: 70% against 75%.

Year built

In Owatonna, half of the homes were built before 1978; in Steele County, before 1975.

Much as in Steele County, 69% of homes in Owatonna have 3 bedrooms or more.

All homes, occupied or empty. A figure the Census cannot measure precisely enough here is not shown.

Census tables: B25024, B25034, B25035, B25041

What it costs here

U.S. Census Bureau, ACS 5-year, 2020–2024

Value of owner-occupied homes

The FHA loan limit for Steele County is $541,287, and about 95% of owner-occupied homes in Owatonna are worth less than that.

Monthly rent with utilities

With a mortgage

$1,661 a month

Steele County: $1,664 a month

Without a mortgage

$654 a month

Steele County: $662 a month

Owners with a mortgage

62%

Steele County: 61%

Owning costs about the same in Owatonna as in Steele County: with a mortgage, $1,661 a month; without one, $654.

Value: what owners think their home is worth. Rent: rent plus utilities, for homes of every size. The FHA limit is the most an FHA loan (Federal Housing Administration) lends for a one-unit home; the fair market rent (FMR) is the one HUD uses for housing vouchers.

Census tables: B25075, B25063, B25088, B25081

How it changed

U.S. Census Bureau, ACS 5-year, 2015–2019 and 2020–2024

Change since 2015–2019

The typical home value in Owatonna rose 47% since 2015–2019, about the same as in Steele County (45%).

Much as in Steele County, the typical rent in Owatonna rose 38% since 2015–2019.

The typical household income in Owatonna rose 29%: less than home values (+47%) and rent (+38%).

Change between two 5-year periods that do not overlap, in each period's dollars, not adjusted for inflation.

Census tables: B25077, B25064, B19013

How people live

U.S. Census Bureau, ACS 5-year, 2020–2024

MeasureOwatonnaSteele CountyMinnesotaUnited States
Rental vacancy Unreliable estimateUnreliable estimate5.3%5.5%
Homeowner vacancy Unreliable estimateUnreliable estimate0.6%0.9%
More than one person per room Unreliable estimateUnreliable estimate2.3%3.4%
People per household 2.362.442.432.53
Drive alone 82%80%69%69%
Carpool 6%7%8%9%
Public transit Unreliable estimateUnreliable estimate2%3%
Walk or bike 2%3%3%3%
Work from home 8%9%18%15%
Other means Unreliable estimate1%1%2%
Typical commute 10 to 19 minutes10 to 19 minutes20 to 29 minutes20 to 29 minutes

Much as in Steele County, a household in Owatonna has 2.36 people on average.

The car rules in Owatonna: 82% of workers drive to work alone, and the typical trip takes 10 to 19 minutes.

Vacancy: empty homes offered for rent or for sale. Rooms: every room in the home, not only bedrooms. Commute: the minute range of the typical worker.

Census tables: B25004, B25003, B25014, B25010, B08301, B08303

Do the math

What would you pay each month for a home in Owatonna?

A typical home is tight for the typical income

We start with a typical home in Owatonna, worth $245,200, an FHA loan with 3.5% down and the latest average rate (7.18%). That payment would take 31% of the typical household income in Owatonna, which is $80,750 a year. For that payment to be 28% of income, a household would need to earn about $90,398 a year.

The calculator's FHA and conventional loan limits are those of all of Steele County.

Your numbers

Local data
$

Starts at the typical home value in Owatonna. Change it to the price you have in mind.

Loan type
Your credit score

Your score changes which loans apply and FHA's minimum down payment. Your real rate also depends on your credit.

Down payment
%

That is $8,582 (3.5% of the price). The usual minimum for this loan is 3.5%.

This week's average ± a quarter or half point.

Term

National average as of November 5, 2026 (Freddie Mac); your rate may be different.

Adjust advanced details

Estimated monthly payment

Local data

$2,109

at 7.18% · 30 years

Loan amount
$240,759
Total interest
$346,395
Paid off in
November 2056

Includes $4,141 FHA upfront mortgage insurance premium.

Does it fit the income?

  • Comfortable

    up to $1,884 a month

  • Tight

    $1,884 to $2,423 a month

    Your payment · 31%

  • Hard

    more than $2,423 a month

Compared with the typical household income in Owatonna ($80,750 a year). Reference: HUD calls paying more than 30% of income for housing a cost burden.

Show the result as
per month$2,109
Principal & interest$1,631
Property tax$268
Home insurance$102
FHA mortgage insurance (MIP)$108

You need at least $8,582 for the down payment, plus closing costs.

Next step

This is an estimate to give you an idea, not a loan offer. Your real payment depends on your rate, your credit, and the insurance and taxes on the home you buy.

The city and its county

Owatonna and Steele County

Owatonna is in Steele County, Minnesota. The U.S. Census Bureau publishes its own numbers for the city: home values, rent, household income, how many households own their home and the property tax. They are American Community Survey estimates (average 2020–2024).

Owatonna's own numbers

Typical home value
$245,200
Typical monthly rent
$1,067
Typical yearly household income
$80,750
Households that own their home
76%
Effective property tax rate
1.31%

U.S. Census Bureau, American Community Survey (average 2020–2024).

Numbers for all of Steele County

FHA limit, one-unit home
$541,287
Conventional limit, one unit
$832,750
HUD fair market rent, 2 bedrooms
$1,244
Price change over 5 years (FHFA)
+47%
Homes in a high flood-risk zone
1%

HUD, FHFA and FEMA don't publish these numbers by city.

Other numbers are not published by city, only for the whole county: FHA and conventional loan limits, HUD’s fair market rents, FHFA’s price index and FEMA’s flood data. On this page, those numbers always say they are for all of Steele County.

Everything about Steele County

Buying

Buying a home in Owatonna

A typical home in Owatonna is worth $245,200: about the same as the county and 26% below Minnesota. With the typical household income in Owatonna ($80,750 a year), a typical home costs 3.0 times what the household earns in a year.

Years of income to pay for a typical home

The typical home value divided by the typical household income for one year. The lower it is, the less buying weighs.

  • Owatonna 3.0 years
  • Steele 2.9 years
  • Minnesota 3.7 years
  • United States 4.1 years
Source: U.S. Census Bureau, Average 2020–2024

How prices have changed in Steele County

According to FHFA’s house price index, home prices in Steele County rose 87% in the 10 years through 2025.

FHFA does not publish this index by city: these are the numbers for all of Steele County.

Period County Minnesota U.S.
Last year (2025) +5.0% +2.8% +2.9%
5 years (2020–2025) +47% +37% +47%
10 years (2015–2025) +87% +71% +85%

The index follows the price of the same homes over time (sales and appraisals with Fannie Mae and Freddie Mac loans). It is not the average price of a home. FHFA considers its annual county indexes experimental. Source: FHFA, 2025 data

Owatonna next to Steele County, Minnesota and the U.S.

Three numbers side by side. “Typical” means the median: half are above it and half below.

Typical home value
  • Owatonna $245,200
  • Steele $245,400
  • Minnesota $329,300
  • United States $332,700
Typical monthly rent
  • Owatonna $1,067
  • Steele $1,061
  • Minnesota $1,280
  • United States $1,413
Typical yearly household income
  • Owatonna $80,750
  • Steele $84,196
  • Minnesota $89,062
  • United States $80,734
See the full table
Owatonna next to Steele County and Minnesota
Measure Owatonna Steele County Minnesota U.S.
Typical home value $245,200 $245,400 $329,300 $332,700
Typical monthly rent $1,067 $1,061 $1,280 $1,413
Typical yearly household income $80,750 $84,196 $89,062 $80,734
Households that own their home 76% 79% 72% 65%
Typical yearly property tax $3,222 $2,964 $3,357 $3,119
Effective property tax rate 1.31% 1.21% 1.02% 0.94%
Renters with high rent for their income 65% 61% 48% 51%

“Typical” means the median: half are above and half are below. ▲ and ▼ say whether the city is above or below Steele County. “High rent” is the Census measure: renter households that pay 30% or more of their income in rent.

Four ways to pay for a typical home in Owatonna

For a typical $245,200 home in Owatonna, at Freddie Mac's average rate (7.18% as of November 5, 2026) over 30 years. The monthly payment adds principal and interest, Owatonna's typical property tax, an example home insurance and mortgage insurance when it applies.

  • FHA, 3.5% down $2,109a month

    Least cash to close
    Down payment
    $8,582
    Cash to close
    $15,938
    Rate
    7.18%
    Mortgage insurance
    FHA MIP · $108

  • Conventional, 5% down $2,064a month

    Down payment
    $12,260
    Cash to close
    $19,616
    Rate
    7.18%
    Mortgage insurance
    PMI · $116

  • Conventional, 20% down, no PMI $1,699a month

    Down payment
    $49,040
    Cash to close
    $56,396
    Rate
    7.18%
    Mortgage insurance
    None

  • ITIN, 15% down (example) $1,925a month

    Down payment
    $36,780
    Cash to close
    $44,136
    Rate
    8.18%
    Mortgage insurance
    None

The option that asks for the least cash to close is FHA, 3.5% down.

  • Cash to close = down payment plus 3% of the price in closing costs (example).
  • Minimum score: FHA requires 580 or higher for the minimum down payment (HUD Handbook 4000.1). * Fannie Mae requires 620 when a loan is underwritten by hand; its automated system has no fixed minimum.
  • The ITIN row is an example with a rate 1 percentage point higher: ITIN loans follow no federal rule and each lender sets its own down payment and rate. Nothing in this table promises an approval.

How much house can I afford? Estimate closing costs

Taxes and floods

Two costs that change from place to place

Property tax and flood insurance raise or lower what you pay each month. Here are the numbers for Owatonna and for Steele County.

Property tax

Effective rate in Owatonna

1.31%of the home’s value each year

$3,222 a year for the typical owner in Owatonna.

  • Owatonna 1.31%
  • Steele 1.21%
  • Minnesota 1.02%

What Minnesota publishes Homestead market value exclusion (Minnesota Office of the Revisor of Statutes (Minnesota Statutes))

Exemptions and deadlines in Minnesota

Flood risk in Steele County

FEMA does not publish these numbers by city: they are for all of Steele County.

Homes in the high-risk zone
1%
168
Of those, with NFIP insurance
28%
County Minnesota U.S.
Homes in the high-risk zone 1% 0.7% 3.5%
Of those, with NFIP insurance 28% 17% 48%

Most homeowners insurance policies do not cover flood damage.

Look up your address on FEMA’s map

Renting

Renting in Owatonna

Typical rent in Owatonna is $1,067 a month: about the same as the county. In Owatonna, 65% of renter households pay 30% or more of their income in rent.

HUD publishes a fair market rent for all of Steele County, by unit size. To pay the 2-bedroom one ($1,244 a month) without spending more than 30% of your income, you would need to earn $23.92 an hour working full time.

HUD fair market rent for all of Steele County

What you need to earn to pay it without spending more than 30% of income, working full time.

Size Fair rent a month Hourly wage Yearly income
Studio $866 $16.65 $34,640
1 bedroom $951 $18.29 $38,040
2 bedrooms $1,244 $23.92 $49,760
3 bedrooms $1,703 $32.75 $68,120
4 bedrooms $1,814 $34.88 $72,560

Includes basic utilities. It isn't the lowest or highest rent: it's a reference point. Source: HUD, Fiscal year 2027

By ZIP code

Fair market rent by ZIP code in Owatonna

HUD also publishes a fair market rent for each ZIP code (Small Area FMR, fiscal year 2027). Owatonna is in ZIP code 55060.

For 2 bedrooms it is $1,250: $6 more than the fair market rent for Steele County ($1,244).

  • 55060 $1,250$1,710

1 of these ZIP codes crosses the city line: HUD sets the rent by ZIP code, not by city. A ZIP code counts for Owatonna when at least 50% of its land is inside the city or it covers at least 15% of the city (Census 2020 boundaries). Source: Small Area Fair Market Rents (HUD) Fiscal year 2027 Small Area Fair Market Rents (HUD) Source: Census Bureau ZCTA-to-place relationship file Data from 2020 data Census Bureau ZCTA-to-place relationship file

Is your rent high for your ZIP?

Low-income apartments

Low-income apartments in Owatonna

HUD lists 11 buildings with rents for lower incomes in Owatonna. These are the largest.

  • Cedardale South 315 22nd St SE, Owatonna 55060 98 low-income homes · For families (507) 455-1693
  • Cedardale Place A/K/A Cedardale South Multiple Building Addresses, Owatonna 55060 98 homes, 97 low-income · 1 bd: 67 · 2 bd: 21 · 3 bd: 10 · In service since 2002
  • Ivanhoe Apartments 220 18th St SW, Owatonna 55060 76 homes, 68 low-income · For families (507) 455-0600
  • Parkview Heights Townhouses 402 Saint Paul Pl, Owatonna 55060 48 low-income homes · For families (507) 451-9680
  • Northgate Apartments 131 W Rose St, Owatonna 55060 36 low-income homes · 1 bd: 9 · 2 bd: 27 · In service since 2016

See all 14 buildings in Steele County Source: HUD, Retrieved November 6, 2026

Free help

Help to buy or rent in Owatonna

You do not have to do this alone. A HUD-approved housing counseling agency helps for free or at low cost: getting ready to buy, understanding your credit, or solving a problem with your rent.

We found no HUD-approved agencies with an office in Steele County. The nearest ones are below; many serve by phone or online.

Two women and a girl laugh together at the bus stop.

HUD counseling is free or low-cost

Assistance programs in Owatonna

No down payment, repair or rent-help program on our list is for Owatonna or Steele County. The ones below are statewide in Minnesota: they work in Owatonna the same as in the rest of the state.

Which programs do I qualify for? All programs in Minnesota

  • Deferred Payment Loan (Start Up)

    Statewide in Minnesota

    Minnesota state agency loan for the down payment and closing costs alongside the Start Up mortgage for first-time buyers: up to $14,000 (or $18,000 in the Plus version), with no interest or monthly payments, repaid at the end of the mortgage. Offered by Minnesota Housing (Minnesota Housing Finance Agency).

    Deferred

    See the program Official page

  • Monthly Payment Loan

    Statewide in Minnesota

    Minnesota Housing loan of up to $14,000 for the down payment and closing costs, which you repay over 15 years at the same rate as your Minnesota Housing mortgage; it works with Start Up (first-time buyers) or Step Up. Offered by Minnesota Housing (Minnesota Housing Finance Agency).

    Repayable

    See the program Official page

Housing counselors near Owatonna

The HUD-approved agencies closest to the center of Owatonna, in a straight line, nearest first. If one says it serves in Spanish, its card says so.

  • Three Rivers Community Action, Inc.

    1414 Northstar Dr, Zumbrota · 31 miles away · Spanish

    Also serves in other languages.

    • Pre-purchase counseling
    • Homebuyer education workshops
    (507) 696-4025

  • Southwest Minnesota Housing Partnership Mankato Branch

    140 Homestead Rd, Mankato · 38 miles away · Spanish

    • Mortgage delinquency and default
    • Budget and financial counseling
    • and 5 more
    (507) 836-1605

  • Lutheran Social Service of Minnesota

    710 South 2nd Street, Mankato · 39 miles away

    • Mortgage delinquency and default
    • Budget and financial counseling
    • and 2 more
    (218) 529-2227

All counseling agencies in Minnesota

Help in Spanish near Owatonna

2 of the 3 agencies on this list say they serve in Spanish.

Ask for service in Spanish

When you call, say “Spanish, please” or ask if someone speaks Spanish. If not, ask whether they offer an interpreter.

Housing authorities of Owatonna

HUD’s record names them for Owatonna or Steele County. They run public housing or Section 8 vouchers. Ask whether their waiting list is open.

All housing agencies in Minnesota Source: HUD

Cities

Nearby cities

The cities closest to Owatonna, with the typical home value.

Everything about Steele County Housing in Minnesota

Neighboring counties

If Steele County is out of reach, look next door. Each number is that county's own.

Keep going

Guides for your next step

Short explanations, in plain language and with official sources, for buying or renting in Owatonna.

All guides
A couple spread mulch under the avocado trees of their family orchard, he on the tractor and she with a shovel.

Questions

Housing questions about Owatonna

Short answers with the numbers for Owatonna and all of Steele County. If your case is different, a HUD-approved counseling agency can guide you for free or at low cost.

How much does a typical home cost in Owatonna?

The typical home value in Owatonna is $245,200, according to the U.S. Census Bureau (average 2020–2024). For comparison, in Steele County it is $245,400.

How much does it cost to rent in Owatonna?

Typical rent in Owatonna is $1,067 a month, according to the U.S. Census Bureau. HUD’s fair market rent for 2 bedrooms in Steele County is $1,244.

What is the FHA loan limit in Owatonna?

Owatonna uses the FHA limit for all of Steele County (2026): $541,287 for a one-unit home and $1,041,125 for a four-unit home.

How much property tax do owners pay in Owatonna?

The typical homeowner in Owatonna pays $3,222 a year, according to the U.S. Census Bureau. That is 1.31% of the home’s value; in Steele County, the rate is 1.21%.

Where can I find free help to buy or rent in Owatonna?

We found no HUD-approved counseling agencies with an office in Steele County; the nearest ones are on this page. They can help you get ready to buy, with your credit, or with rent.

Sources: American Community Survey (ACS) 5-year estimates (Average 2020–2024); FHA mortgage limits (HUD) (2026 data); Conforming loan limits (FHFA) (2026 data); Fair Market Rents (HUD) (Fiscal year 2027); Small Area Fair Market Rents (HUD) (Fiscal year 2027); Census Bureau ZCTA-to-place relationship file (2020 data); HUD-approved housing counseling agencies (Retrieved November 6, 2026); Public Housing Agencies (HUD) (Retrieved November 6, 2026); Freddie Mac Primary Mortgage Market Survey (PMMS) (As of November 5, 2026); FHFA House Price Index (HPI) (2025 data); Homes with flood insurance (NFIP, FEMA) (As of August 3, 2026).