Minneapolis, MN Rental Market Analysis
Updated March 2026 — Investment metrics, cap rates, rent data, and neighborhood analysis for rental property investors in Minneapolis, Minnesota.
Minneapolis Rental Market Overview
Minneapolis has a diversified Fortune 500 economy with strong rental demand from young professionals and University of Minnesota students.
With a median home price of $325,000 and average monthly rents around $1,650, Minneapolis offers investors a rent-to-price ratio of 0.51%. At current market conditions, a typical rental property in Minneapolis generates an estimated cap rate of 6.1% and a cash-on-cash return of approximately 9.2% with 25% down financing at 6.5%.
Major Employers in Minneapolis
Rental demand in Minneapolis is supported by major employers including UnitedHealth, Target, 3M, General Mills, US Bancorp. These institutions provide the job base that drives consistent tenant demand for rental housing in Hennepin County.
Minneapolis ZIP Codes for Investors
Key ZIP codes in the Minneapolis metro area: 55401,55402,55403,55404,55405,55406,55407,55408,55409,55410,55411,55412,55413,55414,55415,55416,55417,55418,55419. Each neighborhood carries different risk/return profiles — use becvio's property analysis tools to evaluate specific deals.
Analyze a Minneapolis Rental Property
Why Invest in Minneapolis, MN Rental Properties?
Minneapolis stands out for rental property investors because of its competitive cap rates averaging 6.1%, combined with solid annual appreciation of 3.9%. The $325,000 median home price makes Minneapolis accessible for investors at various capital levels, while $1,650/month rents provide meaningful cash flow.
With a gross rent multiplier of 16.4x and estimated DSCR of 0.41 on conventional financing, Minneapolis rental properties may require careful underwriting to ensure positive cash flow. Investors using becvio can track these metrics in real-time across their entire portfolio.