Real Estate Investing in Minneapolis, Minnesota (55405)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55405 (Minneapolis, MN)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- High price-to-rent: Price-to-rent ratio 27.9 — hard to cash-flow at these prices.
What’s happening in Minneapolis, MN (55405)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 55405 Minneapolis
ZIP 55405 in Minneapolis, MN carries a robust set of headwinds. Home values near $473K and rents of $1,411/mo sit inside a market where underwriting has to be tight.
Distressed markets are won on execution, not on spreadsheets. ZIP 55405 posts the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Within MN, ZIP 55405 trails on several market indicators that neighboring Hennepin County submarkets outperform. The gap is real and sturdy enough to shape underwriting.
Who lives in 55405 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
The 55405 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 55405
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $161,802 | $1,340 | 6.0% | -3.2% | $161,802 |
| 2BR | $312,723 | $1,630 | 3.8% | +1.6% | $156,362 |
| 3BR | $449,754 | $2,160 | 3.5% | +3.0% | $149,918 |
| 4BR | $695,462 | $2,410 | 2.5% | +3.2% | $173,866 |
| 5BR | $1,001,470 | — | — | +3.1% | $200,294 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55405 Compare?
| Metric | 55405 | Minneapolis | Minnesota |
|---|---|---|---|
| Home Value | $472,783 | $291,832 | $340,597 |
| 5-Year CAGR | 1.8% | 1.0% | 4.9% |
| Avg Rent | $1,411 | $1,706 | - |
| Cap Rate | 2.3% | 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 55405 (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 | $472,783 |
| Monthly Rent | $1,411 |
| Price-to-Rent | 27.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.6% |
| Cap Rate | 2.3% |
| 5-Year IRR | 4.2% |
📈 Home Appreciation
| 1-Year | +5.3% ▲ |
| 3-Year CAGR | +2.5% ▲ |
| 5-Year CAGR | +1.8% ▲ |
| 10-Year CAGR | +3.6% ▲ |
🏠 Rent Trends
| 1-Year | +11.3% ▲ |
| 3-Year CAGR | +5.4% ▲ |
| 5-Year CAGR | +4.2% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.3%). 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 55405
Population: 16,915
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 55405
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
LYNDALE ELEMENTARY
North High
Whittier Elementary
BETHUNE ELEMENTARY
Hall Academy Elementary
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 3,134 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How do experienced investors play Minneapolis, MN?
Most investors in Minneapolis, MN run a careful cash-flow rentals with hands-on management strategy. It aligns with the 2.0/5 investability profile and the market fundamentals.
What kind of tenants rent in Minneapolis, MN?
The tenant pool in Minneapolis, MN is solid, supported by local employment and population fundamentals. Rents of $1,411/mo are well-absorbed by the market.
Is real estate in Minneapolis, MN a good investment right now?
Minneapolis, MN reflects an investability rating of 2.0/5, with median home values near $473K and average rents around $1,411/mo. That combination puts it in the significant tier for investor interest.
Are eviction rules reasonable 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 typical rental rate in Minneapolis, MN?
Minneapolis, MN rentals go for roughly $1,411/mo a month. That puts gross yield in solid territory relative to $473K acquisition costs.
You know 55405 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 55405 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 55405 ranks in Minneapolis-St. Paul-Bloomington, MN-WI
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