Real Estate Investing in Minneapolis, Minnesota (55454)

Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.

Hennepin County • Population: 8,628 • Data updated: September 2026

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Should you buy in 55454 (Minneapolis, MN)? Our answer, based on the numbers below.

🏠 For Homebuyers
CAUTION
Grade D (54/100)

Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.

📈 For Investors
STRONG
4.0 / 5 (86/100)

A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.

⚠️ Risks to Know
4 flags
  • Declining values: -2.3% 5-year CAGR — values have moved lower.
  • Elevated poverty: 42.2% poverty rate — can affect rent collection.
  • Higher unemployment: 10.5% unemployment — tenant risk signal.
  • Lower household income: $24,660 median — tenant affordability is tighter.

What’s happening in Minneapolis, MN (55454)?

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4.0/ 5

Investability

Overall investment appeal

1.0/ 5

Appreciation

Long-term value growth

5.0/ 5

Cashflow ROI

Rental yield potential

Avg Home Value $152,468
Avg Monthly Rent $1,841
1% Rule ✓ Meets
Median Income $24,660
% Renters 90.2%

Market Analysis: 55454 Minneapolis

The 55454 ZIP inside Minneapolis stays in its lane — neither a breakout appreciation market nor a deep-yield play. Home values sit at $152K, rents at $1,841/mo.

What you underwrite in 55454 is what you tend to get. That is harder to find than most investors admit, and it is why this ZIP earns its place in diversified rental portfolios.

Put differently, MN contains both high-growth and high-yield outliers, 55454 sits in the middle — $152K pricing, 0.0% yield, and 0.0% growth all close to regional norms.

Household composition in 55454 has evolved slowly rather than dramatically, which is exactly what stable markets look like under the hood.

A substantial fit for retirement-income-oriented portfolios and 1031 exchanges looking for steady ballast. The ZIP's predictability is its own kind of return.

Explore the Data — Click a Tab Below
🏦 Current 30-yr Fixed Mortgage Rate: 6.76% as of Sep 10 Source: Freddie Mac PMMS

Here's what matters if you're considering buying a home in Minneapolis:

D Needs Caution
Buy Confidence Score: 37/100
Affordability
5/25
Appreciation
0/25
Stability
9/20
Timing
8/15
Rental backup
15/15
Affordability
Expensive
Homes cost 6.2× the median income
Value Trend
Declining (-2.5%)
How home values changed in the past year
Rental Backup
Strong
Could rent for $1,841/mo if you need to move
Market Conditions
BALANCED
Even conditions for buyers and sellers
Bottom Line: This market may be challenging for buyers. Consider your timing and budget carefully.
🏠

Property Strategy for 55454

Which property type performs best in this market?

Best for Cash Flow
1BR
7.7% cap rate
Best for Appreciation
1BR
+1.8% 5yr CAGR
Best Overall Value
2BR
$82,905/bedroom
📊 Compare All Property Types →
Type Median Value Est. Rent Cap Rate 5yr CAGR $/Bedroom
1BR $116,942 $1,250 7.7% +1.8% $116,942
2BR $165,811 $1,520 6.6% -2.3% $82,905

Market Trends

Home Value History (with trend line)

$180K$158K$136K$115K$93K$71KJul 2006Jul 2016Jul 2026

Rent History (with trend line)

$1,883$1,797$1,711$1,625$1,540$1,454Mar 2025Nov 2025Jul 2026

📊 How Does 55454 Compare?

Metric 55454 Minneapolis Minnesota
Home Value $152,468 $291,832 $340,597
5-Year CAGR N/A 1.0% 4.9%
Avg Rent $1,841 $1,706 -
Cap Rate 9.4% 4.3% -
💡 Why Invest in 55454? Click to expand

This ZIP code meets the 1% rule with rent at $1,841/mo on homes averaging $152,468 — a strong indicator of cash flow potential.

Our analysis gives this area a 4/5 investability rating, placing it in the top tier for rental property potential.

90% of households rent in this area, creating consistent tenant demand for landlords.

📊 See where this ZIP ranks in our Best-of lists →
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Landlord Ground Truth

Real numbers from people who own or manage rentals in ZIP 55454 (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

Small multifamily
Unclaimed — is this your business? Claim it free

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

Single-familySmall multifamilyCommercialHOA
Unclaimed — is this your business? Claim it free

Simply Residential Property Management offers expert management of single-family, condominiums, and multi-family dwellings throughout the Twin Cities. summary from their website

Single-familySmall multifamily
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Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.

Investability
Excellent
Cap Rate
9.4%
Excellent
5yr Growth
-2.3%
Declining

📊 Market Snapshot

Home Value $152,468
Monthly Rent $1,841
Price-to-Rent 6.9:1
1% Rule ✓ Passes

💰 Return Metrics

Gross Yield 14.5%
Cap Rate 9.4%
5-Year IRR 7.1%

📈 Home Appreciation

1-Year -2.5% ▼
3-Year CAGR -0.6% ▼
5-Year CAGR -2.3% ▼
10-Year CAGR +2.3% ▲

🏠 Rent Trends

1-Year +11.7% ▲
3-Year CAGR N/A
5-Year CAGR N/A
Positive Leverage Market Cap Rate: 9.4%  |  30yr Rate: 6.8%
Leverage may enhance returns here.

The estimated cap rate (9.4%) exceeds the current 30-yr mortgage rate (6.8%). When borrowing costs less than a property yields, leverage can increase your cash-on-cash return above the cap rate.

⚠️ Risk Signals

Composite view of factors that can impact a ZIP's stability and your downside risk.

Vacancy
4.3%
Low risk
Landlord Climate
3.0/5
Balanced
Value Trend (5yr)
-2.3%
Declining
Eviction process: Slow Rent control: Moderate

Demographics in 55454

Population: 8,628

💰 Median Household Income
$24,660
This area
$24,660
State
$77,168
USA
$74,580
🏠 Renter Occupied
90.2%
This area
90.2%
State
18.9%
USA
34.0%
💼 Unemployment Rate
10.5%
This area
10.5%
State
-3.2%
USA
3.7%
🎓 College Educated
24.3%
This area
24.3%
State
20.0%
USA
33.7%
👤 Median Age
24.4 years
This area
24.4 years
State
37.2 years
USA
38.9 years
🏚️ Vacancy Rate
4.3%
This area
4.3%
State
17.0%
USA
10.5%
👥 Population by Ethnicity
Black/African American 63.0%
White 23.3%
Other/Mixed 7.2%
Asian 6.4%
Hispanic/Latino 2.9%
👶 Under 18
26.9%
This area
26.9%
USA
22.0%
👴 65 and Over
12.1%
This area
12.1%
USA
17.3%
📊 Poverty Rate
42.2%
This area
42.2%
USA
11.5%

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 55454

Nearby Schools (5 more)

Schools in adjacent ZIP codes that may serve this area

A+ Excellent

BRYN MAWR ELEMENTARY

📚 Pre-K – 05 Elementary
📍 252 UPTON AVE S, MINNEAPOLIS
👥
382 Students
👨‍🏫
10.3:1 Class Size
💰
$26,112 Per Student
A+ Excellent

Marcy Elementary

📚 Pre-K – 05 Elementary
📍 415 SE 4TH AVE, MINNEAPOLIS
👥
424 Students
👨‍🏫
11.8:1 Class Size
💰
$26,112 Per Student
A+ Excellent

SULLIVAN ELEMENTARY

📚 Pre-K – 08 School
📍 3100 E 28TH ST, MINNEAPOLIS
👥
598 Students
👨‍🏫
11.0:1 Class Size
💰
$26,112 Per Student
A+ Excellent

Whittier Elementary

📚 Pre-K – 05 Elementary
📍 315 WEST 26TH ST, MINNEAPOLIS
👥
403 Students
👨‍🏫
11.5:1 Class Size
💰
$26,112 Per Student
A+ Excellent

Webster Elementary

📚 Pre-K – 05 Elementary
📍 425 5TH STREET NE, MINNEAPOLIS
👥
268 Students
👨‍🏫
11.5:1 Class Size
💰
$26,112 Per Student
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

8 Nearby 4,006 Off-Campus Students
C
Augsburg University
3,161 students · 0.3 mi
B+
University of Minnesota-Twin Cities
54,890 students · 0.4 mi
C+
Bethlehem College & Seminary
194 students · 0.6 mi
C
North Central University
984 students · 0.9 mi
D
Capella University
43,915 students · 1.3 mi
D
Aveda Arts & Sciences Institute Minneapolis
608 students · 1.3 mi
D
Walden University
44,223 students · 1.3 mi
C+
Minneapolis College of Art and Design
824 students · 1.8 mi

Investor Insight: With 4,006 students living off-campus nearby, this area has strong rental demand from the college population.

Frequently Asked Questions

Is Minneapolis, MN a good place for real estate investing?

Minneapolis, MN reports an investability rating of 4.0/5, with median home values near $152K and average rents around $1,841/mo. That combination puts it in the durable tier for investor interest.

Is rental property easy to operate in Minneapolis, MN?

The landlord environment in Minneapolis, MN is balanced. Statewide rules shape most day-to-day operations for rental owners.

What is the average home sale price in Minneapolis, MN?

Typical homes in Minneapolis, MN go for around $152K. The 5-year CAGR of 0.0% reliable price movement.

Does a duplex house hack pencil in Minneapolis, MN?

The an attractive house-hack environment in Minneapolis, MN reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.

How much rent can I charge in Minneapolis, MN?

Minneapolis, MN rentals go for roughly $1,841/mo a month. That puts gross yield in solid territory relative to $152K acquisition costs.

You know 55454 now. You don’t know where it ranks.

This page stays free — all of it. What one page can’t tell you is how 55454 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.

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How 55454 ranks in Minneapolis-St. Paul-Bloomington, MN-WI

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Cash Flow → Appreciation → Affordable →
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