Real Estate Investing in Minneapolis, Minnesota (55408)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55408 (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.
- Declining values: -0.2% 5-year CAGR — values have moved lower.
What’s happening in Minneapolis, MN (55408)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 55408 Minneapolis
The 55408 ZIP covers a section of Minneapolis that demands careful diligence. Prices near $296K look accessible, but the work to make a deal cash flow is real.
The 55408 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Statewide comparisons place 55408 among MN's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Resident income in 55408 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
The right play in 55408 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Minneapolis:
Property Strategy for 55408
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $138,220 | $1,570 | 8.2% | -2.3% | $138,220 |
| 2BR | $242,641 | $1,910 | 5.7% | -1.8% | $121,321 |
| 3BR | $354,859 | $2,530 | 5.1% | +0.9% | $118,286 |
| 4BR | $428,460 | $2,830 | 4.8% | +1.6% | $107,115 |
| 5BR | $508,660 | — | — | +1.8% | $101,732 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55408 Compare?
| Metric | 55408 | Minneapolis | Minnesota |
|---|---|---|---|
| Home Value | $295,627 | $291,832 | $340,597 |
| 5-Year CAGR | N/A | 1.0% | 4.9% |
| Avg Rent | $1,513 | $1,706 | - |
| Cap Rate | 4.0% | 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 55408 (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 | $295,627 |
| Monthly Rent | $1,513 |
| Price-to-Rent | 16.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.1% |
| Cap Rate | 4.0% |
| 5-Year IRR | 3.8% |
📈 Home Appreciation
| 1-Year | +5.2% ▲ |
| 3-Year CAGR | +0.6% ▲ |
| 5-Year CAGR | -0.2% ▼ |
| 10-Year CAGR | +3.0% ▲ |
🏠 Rent Trends
| 1-Year | +4.4% ▲ |
| 3-Year CAGR | +3.1% ▲ |
| 5-Year CAGR | +2.4% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.0%). 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 55408
Population: 32,534
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 55408
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
BRYN MAWR ELEMENTARY
Whittier Elementary
BANCROFT ELEMENTARY
Ella Baker Elementary
EMERSON 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
Which real estate strategy fits Minneapolis, MN?
Minneapolis, MN investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($296K prices, $1,513/mo rents) make it a reasonable choice.
What kind of vacancy should I budget for in Minneapolis, MN?
Rental vacancy in Minneapolis, MN is elevated. Investors should budget normal turnover but not chronic empty units.
Is Minneapolis, MN good for house hacking?
Minneapolis, MN offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,513/mo rent level.
What is the typical home price in Minneapolis, MN?
The median home value in Minneapolis, MN is roughly $296K. That puts it reasonable relative to the MN statewide average.
How much rent can I charge in Minneapolis, MN?
Average rent in Minneapolis, MN is approximately $1,513/mo per month. Against $296K home values that yields a reasonable rent-to-price ratio.
You know 55408 now. You don’t know where it ranks.
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How 55408 ranks in Minneapolis-St. Paul-Bloomington, MN-WI
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