Real Estate Investing in Minneapolis, Minnesota (55404)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55404 (Minneapolis, MN)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- Declining values: -1.5% 5-year CAGR — values have moved lower.
- Elevated vacancy: 10.3% vacancy may signal weakening demand.
- Elevated poverty: 26.2% poverty rate — can affect rent collection.
What’s happening in Minneapolis, MN (55404)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 55404 Minneapolis
The 55404 ZIP in Minneapolis, MN is a local-operator market. Outside capital chasing a $243K entry has to pair deep knowledge with the discount.
Distressed markets are won on execution, not on spreadsheets. ZIP 55404 posts the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Within MN, ZIP 55404 trails on several market indicators that neighboring Hennepin County submarkets outperform. The gap is real and resilient enough to shape underwriting.
Employment concentration in 55404 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
The 55404 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Minneapolis:
Property Strategy for 55404
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $172,289 | $1,300 | 5.4% | -2.1% | $172,289 |
| 2BR | $264,847 | $1,580 | 4.3% | -2.2% | $132,424 |
| 3BR | $272,907 | $2,090 | 5.5% | +0.1% | $90,969 |
| 4BR | $283,424 | $2,340 | 5.9% | +0.6% | $70,856 |
| 5BR | $395,054 | — | — | +2.0% | $79,011 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55404 Compare?
| Metric | 55404 | Minneapolis | Minnesota |
|---|---|---|---|
| Home Value | $242,504 | $291,832 | $340,597 |
| 5-Year CAGR | N/A | 1.0% | 4.9% |
| Avg Rent | $1,426 | $1,706 | - |
| Cap Rate | 4.6% | 4.3% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 55404 (Minneapolis, MN). Anonymous, moderated, never written by AI.
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Property managers serving Hennepin County
Manage rentals here? List your business →JJS Property Management of Central Minnesota offers a wide choice of apartments in various areas including Avon, Buffalo, Milaca, Monticello, Royalton, Sartell, Sauk Rapids, St. Cloud, and St. Joseph. summary from their website
MGM Property Management, LLC provides property management services for rental properties, homeowner associations, and commercial tenants in the Twin Cities, Rochester, and St. Cloud areas. summary from their website
Simply Residential Property Management offers expert management of single-family, condominiums, and multi-family dwellings throughout the Twin Cities. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $242,504 |
| Monthly Rent | $1,426 |
| Price-to-Rent | 14.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.1% |
| Cap Rate | 4.6% |
| 5-Year IRR | 3.1% |
📈 Home Appreciation
| 1-Year | +3.3% ▲ |
| 3-Year CAGR | +0.3% ▲ |
| 5-Year CAGR | -1.5% ▼ |
| 10-Year CAGR | +2.6% ▲ |
🏠 Rent Trends
| 1-Year | +8.0% ▲ |
| 3-Year CAGR | +3.4% ▲ |
| 5-Year CAGR | +2.9% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.6%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 55404
Population: 28,071
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 55404
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 7,140 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What is the typical rental rate in Minneapolis, MN?
Rent in Minneapolis, MN is around $1,426/mo. The resulting rent-to-value relationship with $243K pricing is reasonable for most investor models.
What is it like being a landlord in Minneapolis, MN?
Landlord-friendliness in Minneapolis, MN is balanced. Eviction timelines and lease enforcement are considered reasonable by most property managers.
What is the rental occupancy rate in Minneapolis, MN?
Rental vacancy in Minneapolis, MN is elevated. Investors should budget normal turnover but not chronic empty units.
Does house hacking make sense in Minneapolis, MN?
For house hackers, Minneapolis, MN is a challenging. The $1,426/mo rent on a unit helps defray the mortgage on a $243K property.
Should investors consider Minneapolis, MN?
Yes - Minneapolis, MN a 3.0/5 investability score. With $243K home prices against $1,426/mo monthly rent, the market delivers a reasonable entry point for new investors.
You know 55404 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 55404 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 55404 ranks in Minneapolis-St. Paul-Bloomington, MN-WI
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