Short answer: In Minneapolis, MN, the median home value is $368,300 and the median 3-bedroom rents for $1,748/mo (Census ACS 2024). That's a rent-to-price ratio of 0.47%, so it misses the 1% rule and ranks #26 of the 50 largest US rental markets. With 20% down at 7.40%, FirstDoor scores a median-priced home Pass (−$1,203/mo cash flow).
Key numbers
The 1% rule in Minneapolis
A quick screen many investors start with: is monthly rent at least 1% of the price? In Minneapolis, here's the answer on typical numbers.
Across all rentals (not just 3-bedrooms) the ratio is 0.36%. A home renting for the median 3-bedroom rent would need to cost about $175,000 or less to pass.
A typical Minneapolis home, scored
We took a home at the median value, gave it the median 3-bedroom rent, and ran it through the same math as the FirstDoor calculator: 20% down, a 30-year loan at 7.40%, the city's median tax rate, and standard expense budgets.
| 3-bedroom rent (median) | $1,748 |
| Property tax ($4,471/yr, local median) | −$373 |
| Insurance ($1,840/yr, assumed) | −$153 |
| Vacancy 9% · Maintenance 5% · Management 8% | −$385 |
| Net operating income | $838 |
| Mortgage (P&I on $294,640 at 7.40%) | −$2,040 |
| Monthly cash flow | −$1,203 |
What price works in Minneapolis?
How low would the price need to be? With the median Minneapolis 3-bedroom rent, here's where each result kicks in.
Takeaways
- Minneapolis's 0.47% ratio is a long way from the 1% rule (#26 of 50). Most investors here are betting on appreciation, not monthly income.
- A median-priced home here would cost you about $1,203/mo out of pocket after the mortgage and every expense. To break even you'd need to pay about $195,000, 47% below the median.
- Prices are outrunning rents: home values rose 3.6% from 2023 to 2024 while 3-bedroom rent fell 7.4%. The 1% math got tougher.
- Rental vacancy is high at 8.6% (US: 5.7%), so we budgeted 9% vacancy instead of 5%. Price in a longer wait for tenants.
Frequently asked questions
Does Minneapolis pass the 1% rule?
No, on typical numbers. The median 3-bedroom gross rent is $1,748/mo and the median home value is $368,300 (Census ACS 2024 1-year), a ratio of 0.47%. To pass at that rent, a home would need to cost about $175,000 or less.
What is the typical rent for a 3-bedroom in Minneapolis?
The median gross rent for a 3-bedroom in Minneapolis, MN is $1,748 a month, and $1,340 across all rentals (Census ACS 2024 1-year). Gross rent includes utilities the renter pays, so the landlord's share can be a bit lower. The 3-bedroom median fell 7.4% from 2023.
Can you cash flow a rental in Minneapolis?
At the median price, not easily. With 20% down at 7.40% and realistic expenses, a $368,300 home renting for $1,748 loses about $1,203/mo. It breaks even at roughly $195,000.
How much cash do you need to buy a typical rental in Minneapolis?
About $84,660: a 20% down payment of $73,660 plus closing costs we assume at 3% ($11,000). Lenders often also want several months of reserves. Investment loans commonly need 15–25% down.
Is Minneapolis a good place to buy a first rental?
FirstDoor scores a median-priced home in Minneapolis as Pass (0 of 8 points). That's a starting point, not a verdict on every listing: neighborhoods vary, and buying below the median changes the math. Run any listing through the free calculator.
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Sources
Data: U.S. Census Bureau, 2024 American Community Survey 1-year estimates (released September 2025); year-over-year changes compare with 2023. Mortgage rate: Freddie Mac PMMS, week of October 15, 2026. Retrieved October 15, 2026. Insurance ($1,840/yr), closing costs (3%), maintenance (5%) and management (8%) are FirstDoor assumptions, not local data. Investment-property loans often price above the PMMS average. Medians describe the whole city, not any one home. Educational content, not financial advice.