Watertown, MN
Population 4,747 · Minnesota
About Watertown, MN
Watertown is a small town located in Minnesota with a population of 4,747 residents according to the latest US Census Bureau American Community Survey data. The median household income is $93,008 per year, which is 24% above the national median of $75,149. The median age of 34.5 years is notably younger the US median age of 38.9 years, indicating a younger, often more dynamic population base.
Housing Market Overview
The housing market in Watertown features a median home value of $315,200, which is 29% above the national median of $244,900. This positions Watertown in a moderately priced market relative to the rest of the country. Median monthly rent is $967, 17% below the national average of $1,163/month. Of the 1,877 total housing units, 79% are owner-occupied (1,435 units) and 21% are renter-occupied (374 units). The high homeownership rate suggests a stable, established residential community.
Economy & Employment
The local economy in Watertown shows an unemployment rate of 0.0%, which is lower than the national rate of 3.7%, indicating a relatively strong job market. The poverty rate stands at 10.1%, below the national average of 12.4%, reflecting generally favorable economic conditions. Workers in Watertown have an average one-way commute time of 26.9 minutes.
Education & Demographics
22.2% of Watertown residents aged 25 and older hold a bachelor's degree or higher, compared to the national average of 33.7%. The lower educational attainment rate may reflect the area's industry mix, with more employment in trades, manufacturing, or agricultural sectors. The community's demographic composition includes 2.1% White, 2.9% Hispanic or Latino, 0.0% Black or African American, and 0.5% Asian residents, with 1.0% of the population being foreign-born.
Cost of Living in Watertown, MN
Compared to national averages, Watertown has a median household income of $93,008 (24% above the national median of $75,149). Home values average $315,200, which is 29% above the national median. Monthly rent at $967 is 17% below the US average of $1,163. Within Minnesota, Watertown's income is 25% above the state average of $74,221, and home values are 54% above the state median of $204,472.
Why Live in Watertown, MN?
Watertown offers a strong local economy with a median household income of $93,008, well above the national average, and rent that’s lower than the national average at $967/month, and a strong job market with an unemployment rate of just 0.0%. Additionally, the city features a low poverty rate of 10.1%, better than the national average.
Watertown has a population of 4,747 with a median age of 34.5 years. Compare Watertown with other cities to see how it stacks up, or explore all cities in Minnesota.
Similar Cities Near Watertown
Cities in Minnesota with a similar population size.
| City | Population | Median Income | Home Value | |
|---|---|---|---|---|
| St. James | 4,740 | $57,031 | $109,600 | Compare |
| Chisholm | 4,731 | $54,815 | $108,100 | Compare |
| Oak Park Heights | 4,782 | $84,639 | $333,600 | Compare |
| Windom | 4,786 | $67,813 | $158,000 | Compare |
| Lonsdale | 4,789 | $91,719 | $327,100 | Compare |
| Dilworth | 4,664 | $89,577 | $268,100 | Compare |
| Sauk Centre | 4,589 | $65,763 | $196,000 | Compare |
| Luverne | 4,907 | $66,145 | $181,100 | Compare |
Demographics
Racial & Ethnic Composition
Economy & Education
Housing
Other Cities in Minnesota
Data source: US Census Bureau ACS 5-Year Estimates. Last updated: 2026-04-05.
Compare Watertown With Other Cities
Frequently Asked Questions about Watertown
What is the population of Watertown, MN?
The population of Watertown, MN is 4,747 according to the latest US Census Bureau American Community Survey estimates. This makes it a small town in Minnesota.
What is the median household income in Watertown?
The median household income in Watertown, MN is $93,008 per year, which is 24% above the national median of $75,149.
What is the median home value in Watertown?
The median home value in Watertown, MN is $315,200, which is 29% above the national median of $244,900. The majority of housing units are owner-occupied.
What is the average rent in Watertown?
The median monthly rent in Watertown, MN is $967, which is 17% below the national average of $1,163/month.
What is the unemployment rate in Watertown?
The unemployment rate in Watertown, MN is 0.0%, compared to the national average of 3.7%. This lower-than-average rate suggests a relatively healthy local job market.
Is Watertown, MN a good place to live?
Watertown offers above-average incomes, a competitive housing market, and a strong job market. With a population of 4,747 and a median age of 34.5, the city appeals to young professionals and families.
How educated is Watertown, MN?
22.2% of residents in Watertown aged 25 and older hold a bachelor's degree or higher, compared to the national average of 33.7%. The educational profile reflects the area's industry mix and employment landscape.
What is the cost of living in Watertown?
Key cost-of-living indicators for Watertown, MN: median home value is $315,200 (29% above national), median rent is $967/month, and median household income is $93,008. The home-value-to-income ratio is 3.4x, indicating relatively affordable housing relative to local incomes.
What is the poverty rate in Watertown?
The poverty rate in Watertown, MN is 10.1%, compared to the national average of 12.4%. This below-average poverty rate reflects generally favorable economic conditions in the community.
How diverse is Watertown, MN?
Watertown's population is 2.1% White, 2.9% Hispanic or Latino, 0.0% Black or African American, 0.5% Asian, and 0.0% two or more races. 1.0% of residents are foreign-born.