Market Analysis
Minneapolis Rental Market
Rental investment market data and analysis · Updated November 2026
Median Home Price
$400,000
Average Monthly Rent
$1,831
Estimated Cap Rate
5.5%
Rent-to-Price Ratio
0.5%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · November 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 55412 | $245,000 | $1,700 | 0.69% |
| 55408 | $325,000 | $1,275 | 0.39% |
| 55419 | $475,000 | $1,800 | 0.38% |
| 55410 | $675,000 | $2,549 | 0.38% |
Context · FRED home price index
Market Trends
Minneapolis metro area — % change since 2018
Home Prices
+56.7%
Rent Index
+31.5%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $1,356/mo |
| Condo | $1,524/mo |
| Townhouse | $1,917/mo |
| Multi-Family | $2,210/mo |
| Single Family | $2,700/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$400,000
Down Payment (20%)$80,000
Monthly P&I$2,086
Monthly Rent$1,831
Est. NOI$13,183/yr
Est. Cash Flow-$988/mo
Cash on Cash-13.5%
The Minneapolis market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.
What Investors Should Know About Minneapolis
- 1Moderate cap rates suggest balanced cash flow and appreciation
- 21% Rule fails at median prices — need rent of $4,000/mo to pass
- 3Below-average rents keep entry costs low for new investors
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