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Best Neighborhoods in Minneapolis, MN for Rental Property Investors

City Median Price

$340,000

City Median Rent

$1,500/mo

City DSCR (75% LTV)

0.73

Neighborhoods

6

Minneapolis is a culturally rich city with a strong economy driven by Fortune 500 companies, healthcare, and the University of Minnesota. The city has eliminated single-family zoning citywide, creating opportunities for small multifamily development. Investors should be aware of recent tenant protection ordinances.

Northeast Minneapolis

ZIP: 55418
Grade A

Northeast Minneapolis is an arts district with breweries, galleries, and a creative community along Central and Hennepin Avenues. Properties have appreciated strongly and attract young professionals and artists. Duplexes and triplexes are common building types.

Price: $280K-$400KRent: $1,500-$1,900Strategy: Buy and Hold

Powderhorn

ZIP: 55407
Grade B

Powderhorn is a diverse south Minneapolis neighborhood around Powderhorn Park with affordable homes and a strong community identity. The area appeals to a mix of tenants and offers solid cash flow. Duplexes and small multifamily buildings provide multiple income streams.

Price: $200K-$300KRent: $1,200-$1,550Strategy: Buy and Hold

North Minneapolis

ZIP: 55411
Grade C

North Minneapolis offers the most affordable properties in the city with ongoing community investment and development. Properties can be acquired and renovated for strong cash flow. The area has active nonprofits supporting neighborhood improvement.

Price: $120K-$200KRent: $1,000-$1,300Strategy: BRRRR

Uptown

ZIP: 55408
Grade A

Uptown around Lake Calhoun and Lake Harriet is one of Minneapolis most walkable neighborhoods with dining, shopping, and outdoor recreation. Strong rental demand from young professionals keeps vacancy very low. Properties hold value well in all market conditions.

Price: $250K-$380KRent: $1,400-$1,800Strategy: Buy and Hold

St. Louis Park

ZIP: 55426
Grade A

St. Louis Park is a first-ring western suburb with the Shops at West End and proximity to major employers. Properties attract professionals and families with a preference for suburban amenities near the city. Low vacancy and steady appreciation.

Price: $280K-$400KRent: $1,500-$1,900Strategy: Buy and Hold

Longfellow

ZIP: 55406
Grade B

Longfellow is a south Minneapolis neighborhood along Minnehaha Creek and the light rail Green Line extension corridor. Properties are well-maintained and attract families and professionals. The area offers a good balance of affordability and tenant quality.

Price: $240K-$350KRent: $1,300-$1,700Strategy: Buy and Hold

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