Minnesota · Minneapolis-St. Paul-Bloomington, MN-WI metro area

Buying a home in Bloomington, Minnesota

In Bloomington, the median value of owner-occupied homes is $361,700, Hennepin County's effective property tax rate is 1.14%, a purchase mortgage carried a median $5,517 in total loan costs in 2025, and median gross rent is $1,561 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Bloomington home costs, fact by fact

About Bloomington

In Bloomington, Minnesota, 65.7% of homes are owner-occupied and owners estimate the median home value at $361,700; this is an owner estimate, not a sale price. Median gross rent is $1,561 a month, and HUD's two-bedroom Fair Market Rent is $1,734. Bloomington is part of the Minneapolis-St. Paul-Bloomington, MN-WI metro area.

Reading the Bloomington figures

Bloomington's owner-estimated median of $361,700 is a close match to Minneapolis at $362,200 and sits above the $353,800 given for Minnesota. Rochester reports $310,500, St. Paul reports $294,500, and Duluth reports $242,700. Its owner share of 65.7% is the highest among those cities, with Rochester at 65.1% a near match. Rent of $1,561 a month runs below HUD's Fair Market Rent of $1,734 for Hennepin County. Hennepin County's rate of 1.14% follows from $4,480 in tax on a home worth $392,900. In 2025, lenders originated 12,449 mortgages here, and the typical up-front loan expenses were $5,517, with a central band from $4,224 to $8,120.

Calculate for Minnesota

If you buy

Minnesota state transfer tax

State deed tax (Minn. Stat. 287.21): 0.33% of net consideration when over $3,000; flat $1.65 for $3,000 or less. Change the price: the amount is recalculated instantly.

Price$353,800
State transfer tax$1,167.54
Share of the price0.33% of the price
Who paysThe seller

Default price: the Minnesota median value of owner-occupied homes, $353,800 (Census ACS 2025). Rule: 0.33% of net consideration (price minus any lien or mortgage that stays on the property) when consideration is over $3,000. A flat $1.65 applies to consideration of $3,000 or less, no consideration, and certain mergers and designated transfers. Who pays: The grantor is liable for the deed tax (287.24), so by law the seller owes it. The mortgagor (borrower) is liable for the mortgage registry tax (287.035). A purchase agreement may shift costs between the parties. Not included: county and city transfer taxes, the tax on the mortgage, recording fees, title insurance and lender charges. Minnesota transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Minnesota state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Bloomington

How much is property tax in Bloomington?

Homeowners in Hennepin County pay a median $4,480 a year in property tax, 1.14% of the county median home value of $392,900 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Bloomington?

Home-purchase mortgages in Hennepin County carried median total loan costs of $5,517 in 2025; half of the 12,449 loans fell between $4,224 and $8,120 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Bloomington?

Minnesota calls its transfer tax a deed tax: 0.33% of the net consideration when a deed is recorded, plus a mortgage registry tax of 0.23% of a new loan. Hennepin County adds 0.01% to each. By law the seller owes the deed tax and the borrower the mortgage tax.

Is it cheaper to rent or buy in Bloomington?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Bloomington ($361,700) equals 19.3 years of the median gross rent ($1,561 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Minnesota rules that apply in Bloomington

Other large cities in Minnesota

Who licenses each trade in Minnesota · All covered cities

Sources

Minnesota · All states · Federal guides