What's a good cap rate in Minneapolis?

In Minneapolis, cap rates typically run around 6.0% (Minneapolis metro median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Minneapolis deal lands versus this benchmark.

What's the average rent for a rental in Minneapolis?

A typical rental in Minneapolis runs about $1,709–$2,262/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Minnesota?

Minnesota's effective property tax rate is about 1.11% of value per year — the figure TrueCap applies by default for Minneapolis deals. You can override it with the exact local rate.

Minneapolis, MN

Minneapolis rental property analysis

Minneapolis pairs a strong, diversified economy with deep rental demand — but high property taxes and tenant-friendly rules require careful underwriting.

Minneapolis market snapshot

Balanced market

Mid-range cap rates — cash flow and appreciation are both realistically on the table.

Typical cap rate

6.0%

Minneapolis metro median

Typical rent

$1,709–$2,262/mo

HUD FMR · 2–3BR · 2026

Typical price

$260,000–$380,000

est., all-in

Property tax

1.11%

Minnesota effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Minneapolis a good place to buy rentals?

A solid metro for buy-and-hold if you model the real tax bill and tenant-protection rules. Duplexes and small multis are plentiful and house-hack well.

See the full Minnesotainvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Minneapolis

Northeast Minneapolis

Popular, walkable, strong demand.

St. Paul (Midway)

Affordable, central, steady rentals.

Brooklyn Park

Suburb with newer stock, family renters, low vacancy.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Minneapolis deal in 60 seconds

Paste a Minneapolis address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Minnesota tax and HUD rent so you start from the right assumptions.

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