Real Estate Investing in Minnesota — 2026

We track 1 market in Minnesota with detailed investment metrics. Most cities here score highest for appreciation investing.

Last updated: May 2026

Avg Cap Rate

6.1%

Avg Home Price

$295,000

Avg Rent

$1,550/mo

Avg Vacancy

5.3%

Minnesota Investment Markets

CityCap RateMedian PriceRentGrowthBest Strategy
Minneapolis6.1%$295,000$1,550+2.5%Appreciation

Best Strategy for Minnesota

Based on our analysis, the dominant strategy across Minnesota markets is Appreciation investing. 1/1 cities in the state score highest for this approach. Markets ranked by appreciation potential — factoring in population growth, income growth, low vacancy, and economic momentum.

View Appreciation Rankings

Frequently Asked Questions

How many real estate investment markets do you track in Minnesota?

We track 1 market in Minnesota: Minneapolis. Each market is analyzed across 10+ metrics including cap rates, rent-to-price ratios, vacancy rates, and population growth.

What is the average cap rate in Minnesota?

The average cap rate across our tracked Minnesota markets is 6.1%. Minneapolis has the highest cap rate at 6.1%. Average median home price is $295,000.

Is Minnesota good for real estate investing?

Minnesota offers investment potential. The average vacancy rate is 5.3% and average property tax rate is 1.28%. Positive population growth signals healthy demand.

Which city in Minnesota has the best cap rate?

Minneapolis, MN has the highest average cap rate in Minnesota at 6.1%, with a median home price of $295,000 and median rent of $1,550.

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Minnesota Cities

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