Rent vs buy in Minneapolis, MN
A typical home in Minneapolis, Minnesota costs $328,351, and typical rent there is $1,747 /mo.
Over 7 years, renting comes out ahead by $17k
Using Minneapolis's typical rent and home value, plus 20% down and today's mortgage rate. You break even in year 11.
Clearly labelled opinion, with the math shown. These are estimates, not quotes. Change any number and the stamp updates.
- Renting is ahead by
- $17k after 7 years
- Break-even point
- Year 11 when owning catches up
- Real cost of owning
- $2,990 /mo year 1, against $1,747 rent
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Is it cheaper to rent or buy in Minneapolis?
Counting the money that comes back to you when you sell, renting is cheaper by $17,331 over 7 years. For the first 10 years, renting costs less. Buying catches up in year 11.
Rent. Own. Running total of net cost, year by year.
Minneapolis: average rent compared with mortgage payment
Rent and mortgage payments tell only part of the story. Here are all the monthly costs for year 1 at Minneapolis's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,747 | All of it, every month |
| Mortgage payment | $1,790 | $1,578 of it is interest in year 1 |
| Property tax | $328 | 1.2% of the value a year |
| Insurance | $140 | Census median for the city |
| Upkeep | $274 | 1% of the value a year |
| Owning, cash out | $2,532 | $212 of it builds equity |
| Lost return on the down payment | $534 | The yearly return on that cash, 8.3% a year |
| Buying costs, spread out | $137 | 3.5% of the price over 7 years |
| True cost of owning | $2,990 | Cash out, minus the equity share, plus the two lines above |
Behind the Minneapolis verdict: the numbers
- Typical home valueZillow ZHVI, September 2026
- $328,351
- Typical rentZillow ZORI, September 2026
- $1,747 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, Minnesota, 1995 to 2025
- 4.3% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Minneapolis
- 1.2% of value
- Home insuranceCensus ACS 2020-2024, Minneapolis
- $140 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
In Minneapolis, what would cause it to flip?
In Minneapolis, each line shows the point at which the 7-year verdict changes, while everything else remains unchanged.
When renting wins
- Annual home price growth stays under 5.0%. We apply Minnesota's long-run rate of 4.3%.
- The mortgage rate remains above 6.30%.
- For a home like this, monthly rent is under $1,930, with $1,747 being typical here.
- Moving before year 11.
Buying comes out ahead when
- Home prices grow at more than 5.0% a year.
- You lock in a mortgage rate below 6.30%, compared with today's 7.24%.
- You'd pay over $1,930 each month to rent this same home.
- Your stay lasts 11 years or more.
Minneapolis compared with the other 812 cities
| Measure | Minneapolis | Median city |
|---|---|---|
| Typical home value | $328,351 | $422,451 |
| Typical rent | $1,747 /mo | $1,837 /mo |
| Price-to-rent ratio | 15.7 (#587 of 813) | 18.5 |
| Home prices, last 10 years | 3.8% a year | 6.2% a year |
| Rents, last 5 years | 2.9% a year | 4% a year |
| Property tax | 1.20% | 0.87% |
| Households that rent | 52% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Minnesota's other cities
- Rent. St. Paul, MN. Renting ahead by $21k.
- Rent. Rochester, MN. Renting comes out ahead by $32k.
- Rent. Bloomington, MN. Renting comes out ahead by $35k.
- Rent. Duluth, MN. Renting comes out ahead by $28k.
- Rent. Brooklyn Park, MN. Renting comes out ahead by $41k.
- Rent. Woodbury, MN. Renting comes out ahead by $37k.
- Rent. Plymouth, MN. Renting comes out ahead by $88k.
- Rent. Lakeville, MN. Renting comes out ahead by $58k.
- Rent. Blaine, MN. Renting comes out ahead by $6k.
- Rent. Maple Grove, MN. Renting comes out ahead by $20k.
- Rent. St. Cloud, MN. Renting comes out ahead by $22k.
- Rent. Eagan, MN. Renting comes out ahead by $52k.