Real Estate Investing in Minneapolis, Minnesota (55407)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55407 (Minneapolis, MN)? Our answer, based on the numbers below.
Mixed — values have been flat. OK for long-horizon buyers, less attractive if you may need to sell soon.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- Flat appreciation: Values have barely moved over 5 years (1.0% CAGR).
What’s happening in Minneapolis, MN (55407)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 55407 Minneapolis
ZIP 55407 in Minneapolis, MN carries a solid set of headwinds. Home values near $321K and rents of $1,451/mo sit inside a market where underwriting has to be tight.
The investment case in 55407 is healthy only for operators who understand what they are buying. A $321K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
In the broader MN picture, 55407 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
The 55407 ZIP's population of 36,992 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that comes in at the need for careful underwriting.
Strategically, 55407 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Minneapolis:
Property Strategy for 55407
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $144,713 | $1,250 | 6.2% | +0.3% | $144,713 |
| 2BR | $268,086 | $1,520 | 4.1% | +1.9% | $134,043 |
| 3BR | $331,848 | $2,020 | 4.4% | +2.1% | $110,616 |
| 4BR | $361,888 | $2,270 | 4.5% | +2.4% | $90,472 |
| 5BR | $381,681 | — | — | +2.9% | $76,336 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55407 Compare?
| Metric | 55407 | Minneapolis | Minnesota |
|---|---|---|---|
| Home Value | $320,928 | $291,832 | $340,597 |
| 5-Year CAGR | 1.0% | 1.0% | 4.9% |
| Avg Rent | $1,451 | $1,706 | - |
| Cap Rate | 3.5% | 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 55407 (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 | $320,928 |
| Monthly Rent | $1,451 |
| Price-to-Rent | 18.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.4% |
| Cap Rate | 3.5% |
| 5-Year IRR | 4.6% |
📈 Home Appreciation
| 1-Year | +4.6% ▲ |
| 3-Year CAGR | +2.1% ▲ |
| 5-Year CAGR | +1.0% ▲ |
| 10-Year CAGR | +4.2% ▲ |
🏠 Rent Trends
| 1-Year | -7.2% ▼ |
| 3-Year CAGR | +0.6% ▲ |
| 5-Year CAGR | +1.5% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.5%). 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 55407
Population: 36,992
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 55407
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
Is Minneapolis, MN a good market for buy-and-hold investors?
Minneapolis, MN rates 2.0/5 for investability. With median values at $321K and rents near $1,451/mo, the market offers reasonable fundamentals for rental investors.
Are renters plentiful in Minneapolis, MN?
Expect a solid tenant pool in Minneapolis, MN. The rental market absorbs $1,451/mo rents without meaningful friction.
How should investors approach Minneapolis, MN?
Investors usually favor careful cash-flow rentals with hands-on management in Minneapolis, MN. With home values at $321K and rents near $1,451/mo, other strategies can work but produce reliable rather than outsized returns.
Is house hacking profitable in Minneapolis, MN?
The a challenging house-hack environment in Minneapolis, MN reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
What do landlords charge for rent in Minneapolis, MN?
Investors in Minneapolis, MN typically see rents near $1,451/mo per month against $321K home values - a solid setup for rental cash flow.
You know 55407 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 55407 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 55407 ranks in Minneapolis-St. Paul-Bloomington, MN-WI
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