The typical owner-occupied home in Heron Lake is worth about $88,600, 73% below the Minnesota median of $329,300 and 73% below the national median of $332,700. Owners pay a median $1,193 a year in property taxes, about 1.35% of their home's value, higher than the Minnesota rate of 1.02%. The median household earns $68,000 a year, so the median home costs 1.3 times the median income (3.7 times for Minnesota). 83% of occupied homes here are lived in by their owners, and 48% of those owners still have a mortgage.
Heron Lake at a glance
| Heron Lake | Minnesota | U.S. | |
|---|---|---|---|
| Median home value | $88,600 | $329,300 | $332,700 |
| Median property tax paid per year | $1,193 | $3,357 | $3,119 |
| Property tax as a share of value | 1.35% | 1.02% | 0.94% |
| Median household income | $68,000 | $89,062 | $80,734 |
| Homes lived in by their owners | 83% | 72% | 65% |
| Owner homes with a mortgage | 48% | 64% | 61% |
| Median monthly costs, owners with a mortgage | $842 | $1,947 | $1,963 |
| Those costs as a share of the owners' income | 13.5% | 19.7% | 21.0% |
| Median rent | $833 | $1,280 | $1,413 |
| Rent as a share of renters' income | 18.9% | 29.2% | 30.6% |
| Median year homes were built | 1953 | 1979 | 1980 |
| Vacant homes | 10.5% | 9.3% | 10.1% |
| Population | 593 | 5,739,445 | 334,922,499 |
What a typical home costs per month in Heron Lake
At this week's average 30-year rate of 7.11%, buying the median Heron Lake home of $88,600 with 20% down costs about $613 a month, including property taxes and insurance. With an FHA loan and 3.5% down, it's about $761, because the loan is bigger and FHA adds mortgage insurance.
Lenders usually want housing costs under about 28% of gross income, which means an income of roughly $26,289 for the 20%-down payment. That payment is 11% of the median Heron Lake household income of $68,000; at that income and 20% down, the 28% guideline points to a home of about $229,000.
The median rent here is $833 a month, a little more than the monthly cost of owning the median home with 20% down.
| Down payment | $17,720 |
|---|---|
| Loan amount | $70,880 |
| Principal and interest | $477 |
| Property taxes (1.35% a year) | $100 |
| Homeowners insurance (our estimate, 0.5% a year) | $37 |
| PMI | $0 |
| Total per month | $613 |
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| Down payment | $3,101 |
|---|---|
| Loan amount | $86,995 |
| Principal and interest | $585 |
| Property taxes (1.35% a year) | $100 |
| Homeowners insurance (our estimate, 0.5% a year) | $37 |
| FHA mortgage insurance | $39 |
| Total per month | $761 |
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Questions about home buying in Heron Lake
What is the median home value in Heron Lake?
About $88,600 for owner-occupied homes, according to the Census Bureau's 2020–2024 American Community Survey.
How much are property taxes in Heron Lake?
Homeowners pay a median $1,193 a year, which is about 1.35% of the median home value. Your bill depends on your home's assessed value and local rates.
What income do you need to buy a home in Heron Lake?
For the median home with 20% down at 7.11%, the payment is about $613 a month. Keeping that under 28% of gross income takes about $26,289 a year.
More about Heron Lake
- Mortgage Refinance in Heron Lake
- Debt Relief in Heron Lake
- Home Equity Loans in Heron Lake
- Guides and quotes for mortgage refinance on our sister site, MortgageRefinance.com
Sources: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates; Freddie Mac Primary Mortgage Market Survey, week of November 12, 2026. Estimates for small places have wide margins of error. About our data