In this paper, we consider the optimal design of networked estimators to minimize the communication/measurement cost under the networked observability constraint. This problem is known as the minimum-cost networked estimation problem, which is generally claimed to be NP-hard. The main contribution of this work is to provide a polynomial-order solution for this problem under the constraint that the underlying dynamical system is self-damped. Using structural analysis, we subdivide the main problem into two NP-hard subproblems known as (i) optimal sensor selection, and (ii) minimum-cost communication network. For self-damped dynamical systems, we provide a polynomial-order solution for subproblem (i). Further, we show that the subproblem (ii) is of polynomial-order complexity if the links in the communication network are bidirectional. We provide an illustrative example to explain the methodologies.