Appreciation Investing in Minneapolis, MN
Data-driven appreciation analysis for Minneapolis, MN — score breakdown, key investment metrics, and how it compares to other markets.
Last updated: May 2026
Score Breakdown
Key Metrics for Appreciation
Pop. Growth
+2.5%
Moderate
Median Income
$96,339
Household income
Vacancy Rate
5.3%
Very tight supply
Population
1.3M
Metro demand indicator
Appreciation Investment Thesis
Minneapolis has a strong economy anchored by Fortune 500 companies and healthcare. Low vacancy and high income levels support premium rents, though winters limit the tenant pool to committed residents.
How Minneapolis Compares
| Rank | City | Appreciation Score | Cap Rate | Median Price |
|---|---|---|---|---|
| #15 | Houston, TX | 5.5 | 6.3% | $265,000 |
| #16 | Denver, CO | 5.5 | 4.4% | $525,000 |
| #17 | Columbus, OH | 5.4 | 6.8% | $240,000 |
| #18 | Minneapolis, MN | 5.4 | 6.1% | $295,000 |
| #19 | San Antonio, TX | 5.2 | 6.5% | $250,000 |
| #20 | Nashville, TN | 5.2 | 5.2% | $400,000 |
| #21 | Los Angeles, CA | 5.1 | 3.2% | $900,000 |
Showing markets ranked near Minneapolis for this strategy.
Quick Math: Estimated Annual Return
Based on median market data. Your actual returns will vary based on specific property, financing, and management costs. Always run your own analysis before investing.
Frequently Asked Questions
What is the appreciation score for Minneapolis, MN?
Minneapolis, MN scores 5.4 out of 10 on our appreciation score, ranking #18 out of 52 markets we track. Weighted composite: population growth (40%), median household income (25%), low vacancy (20%), metro size/demand (15%). Scale 0–10.
Is Minneapolis a good city for appreciation investing?
Minneapolis, MN ranks #18 for appreciation investing — a solid mid-tier market with a score of 5.4/10. The median home price is $295,000 with a 6.1% average cap rate.
What is the average cap rate in Minneapolis?
The average cap rate in Minneapolis, MN is 6.1%. The median home price is $295,000 with a median monthly rent of $1,550, resulting in a rent-to-price ratio of 0.53%.
What are the property taxes in Minneapolis?
The effective property tax rate in Minneapolis, MN is 1.28%. On a $295,000 property, that translates to approximately $3,776 per year in property taxes.
How does Minneapolis compare to other appreciation markets?
Among our 52 tracked markets, Minneapolis, MN ranks #18 for appreciation investing. It falls in the middle of the pack for this strategy.
What is driving population growth in Minneapolis?
Minneapolis, MN has a 5-year population growth rate of +2.5% and a median household income of $96,339. Moderate population growth combined with economic diversification supports steady long-term appreciation potential.
Run Your Own Numbers for Minneapolis
Use our free calculators pre-filled with Minneapolis, MN market data, or adjust the numbers for your specific deal.
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