Rental Property for Minnesota (2026)
Minnesota (MN) Key Facts
Average Cap Rate
6%
Average 1 B R Rent
$1,100
Rent to Price Ratio
4.00%
Landlord Friendly
Moderate
Average Property Tax Rate
1.12%
How This Calculator Works in Minnesota
This rental property calculator helps you analyze potential investment properties in Minnesota by estimating cash flow, cap rate, and return on investment. It is pre-loaded with Minnesota's average rent and property values so you can quickly evaluate whether a property meets your investment criteria. Adjust the rental income, expenses, and financing terms to match a specific property.
Minnesota Overview
Minnesota offers a cap rate of 6% with median home prices of $330,000 and average 1BR rents of $1,100/month. Minnesota leans tenant-friendly, with stronger renter protections and longer eviction timelines. Factor this into your risk and vacancy assumptions. There is no statewide rent control, allowing market-rate adjustments at lease renewal.
How Minnesota Compares
Minnesota's cap rate of 6% is comparable to nearby states. Wisconsin has a cap rate of 6.5% and Iowa has a cap rate of 7%. Investors often compare multiple states to find the best risk-adjusted returns for their strategy.
| State | Top Rate | Notes |
|---|---|---|
| Wisconsin | 6.5% | Average cap rate of 6.5% with median home price of $270,000 and average 1BR rent of $950. Moderate landlord-tenant regulations. |
| Iowa | 7% | Average cap rate of 7% with median home price of $210,000 and average 1BR rent of $800. Moderate landlord-tenant regulations. |
| North Dakota | 6.5% | Average cap rate of 6.5% with median home price of $250,000 and average 1BR rent of $850. Moderate landlord-tenant regulations. |
Minnesota has an average cap rate of 6%, which is near the national average for investment returns. The rent-to-price ratio of 4.00% helps investors gauge monthly cash flow potential relative to the property's value.
Tips for Minnesota Residents
- 1The average cap rate in Minnesota is 6%. This is above average nationally, indicating relatively strong cash-flow potential.
- 2Minnesota leans tenant-friendly, with stronger renter protections and longer eviction timelines. Factor this into your risk and vacancy assumptions.
- 3Minnesota does not have statewide rent control, allowing landlords to set and raise market-rate rents freely at lease renewal.
- 4Budget for operating expenses of 40-50% of gross rent in Minnesota, covering property taxes (1.12%), insurance, maintenance (1-2% of property value/year), vacancy (5-8%), and property management (8-10% of rent if hiring a manager).
- 5Average 1BR rent in Minnesota is $1,100/month against a median home price of $330,000. The rent-to-price ratio helps you quickly screen properties: higher ratios suggest better cash-flow potential.
Frequently Asked Questions
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