Real Estate Investing in Minneapolis, Minnesota (55406)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55406 (Minneapolis, MN)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
No major risk flags on the data we track.
What’s happening in Minneapolis, MN (55406)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 55406 Minneapolis
ZIP 55406 inside Hennepin County looks affordable on the surface — median value of $351K — but the discount exists for reasons that a careful buyer should understand before committing.
Distressed markets are won on execution, not on spreadsheets. ZIP 55406 stands at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
The gap between 55406 and stronger Minneapolis ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Resident income in 55406 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Strategy in 55406 is an operator game, not a passive one. Meanwhile, entry prices of $351K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Minneapolis:
Property Strategy for 55406
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $204,687 | $1,350 | 4.7% | +2.8% | $204,687 |
| 2BR | $291,486 | $1,640 | 4.1% | +2.9% | $145,743 |
| 3BR | $360,387 | $2,170 | 4.3% | +2.9% | $120,129 |
| 4BR | $429,117 | $2,430 | 4.1% | +3.2% | $107,279 |
| 5BR | $474,421 | — | — | +3.2% | $94,884 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55406 Compare?
| Metric | 55406 | Minneapolis | Minnesota |
|---|---|---|---|
| Home Value | $350,902 | $291,832 | $340,597 |
| 5-Year CAGR | 2.0% | 1.0% | 4.9% |
| Avg Rent | $1,497 | $1,706 | - |
| Cap Rate | 3.3% | 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 55406 (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 | $350,902 |
| Monthly Rent | $1,497 |
| Price-to-Rent | 19.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.1% |
| Cap Rate | 3.3% |
| 5-Year IRR | 5.3% |
📈 Home Appreciation
| 1-Year | +6.3% ▲ |
| 3-Year CAGR | +2.7% ▲ |
| 5-Year CAGR | +2.0% ▲ |
| 10-Year CAGR | +4.7% ▲ |
🏠 Rent Trends
| 1-Year | -2.5% ▼ |
| 3-Year CAGR | +1.0% ▲ |
| 5-Year CAGR | +2.3% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.3%). 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 55406
Population: 35,863
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 55406
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 4,006 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What approach is best for Minneapolis, MN real estate?
For Minneapolis, MN, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
Is Minneapolis, MN a friendly market for rental owners?
Minneapolis, MN operates under MN law, which is balanced overall for landlords. Expect stable treatment in typical lease and eviction cases.
What are rental rates like in Minneapolis, MN?
Minneapolis, MN rentals go for roughly $1,497/mo a month. That puts gross yield in solid territory relative to $351K acquisition costs.
Are tenants stable in Minneapolis, MN?
Expect a solid tenant pool in Minneapolis, MN. The rental market absorbs $1,497/mo rents without meaningful friction.
How does Minneapolis, MN rate as a rental market?
Our data puts Minneapolis, MN at 2.0/5 for investability. Home prices of $351K and rents around $1,497/mo create a solid backdrop for investor activity.
You know 55406 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 55406 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 55406 ranks in Minneapolis-St. Paul-Bloomington, MN-WI
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