Minnesota · main city

Buying a home in Minneapolis, Minnesota

In Minneapolis, the median value of owner-occupied homes is $357,800, 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 $1,371 a month.

Data as of : Census ACS 2025 1-year, Census Vintage 2024, FHFA HPI 2026Q2, Census ACS 2020-2024, HMDA 2025, HUD FY 2027. Sources

Checked on against the official sources listed at the bottom of the page.

Minneapolis home costs, fact by fact

  • Minneapolis is the first-named city of the Minneapolis-St. Paul-Bloomington, MN-WI metropolitan area. (Census Vintage 2024)
  • That metro area is the 16th largest in the United States, with 3,757,952 residents. (Census Vintage 2024)
  • Minneapolis itself counts 428,579 residents. (Census Vintage 2024)
  • The median value of owner-occupied homes in Minneapolis is $357,800. (Census ACS 2025 1-year)
  • That figure is what owners estimate their home is worth, not a sale price. (Census ACS 2025 1-year)
  • The FHFA House Price Index shows Minnesota prices up 2.5% and Minneapolis–St. Paul–Bloomington prices up 2.3% between the second quarters of 2025 and 2026. (FHFA HPI 2026Q2)
  • Owners occupy 47.7% of the occupied homes in Minneapolis. (Census ACS 2020-2024)
  • Median gross rent in Minneapolis is $1,371 a month. (Census ACS 2020-2024)
  • Homeowners in Hennepin County pay a median $4,480 a year in property tax. (Census ACS 2020-2024; Minnesota property tax by county)
  • That is 1.14% of the median home value in Hennepin County, its effective property tax rate. (Census ACS 2020-2024)
  • Home-purchase mortgages in Hennepin County carried median total loan costs of $5,517 in 2025, across 12,449 loans. (HMDA 2025; Hennepin County loan costs)
  • Half of those loans fell between $4,224 and $8,120. (HMDA 2025)
  • HUD's Fair Market Rent for a 2-bedroom home is $1,734 a month in its rent area, Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area. (HUD FY 2027)
  • 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. (official sources; Minnesota transfer tax)

Calculate for Minneapolis

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$357,800
State transfer tax$1,180.74
Share of the price0.33% of the price
Who paysThe seller

Default price: the Minneapolis median value of owner-occupied homes, $357,800 (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.

In short

The median value of owner-occupied homes in the city of Minneapolis is $357,800, according to the Census Bureau’s 2025 American Community Survey. Prices in the Minneapolis–St. Paul–Bloomington metro area rose 2.3% between the second quarters of 2025 and 2026 (FHFA). When you buy a house, duplex or townhouse in the city, the seller must have a Truth in Sale of Housing report (City of Minneapolis).

How much homes cost in Minneapolis

The Census Bureau’s American Community Survey (ACS) asks owners how much they think their home would sell for. The median of those answers is a useful benchmark, but it is not a sale price: it covers every owner-occupied home, including homes bought long ago. Our page on Minnesota home prices explains the method in detail.

AreaMedian value, 2025 (ACS)Margin of error (90%)
City of Minneapolis$357,800±$12,741
Hennepin County$411,900±$5,766
Minneapolis–St. Paul–Bloomington metro area (MN-WI)$396,700±$3,046
Minnesota$353,800±$2,300
United States$371,100±$646

*Source: U.S. Census Bureau, ACS 1-Year Estimates 2025, table B25077.

Are Minneapolis prices rising?

The Federal Housing Finance Agency (FHFA) tracks repeat sales of the same single-family homes. FHFA publishes no index for the city alone, so the closest series is its purchase-only, seasonally adjusted index for the metro area, published August 25, 2026:

Area1-year change (Q2 2025 to Q2 2026)5-year change (Q2 2021 to Q2 2026)
Minneapolis–St. Paul–Bloomington metro area+2.3%+20.5%
Minnesota+2.5%+24.7%
United States+2.1%+33.4%

Source: FHFA House Price Index, quarterly purchase-only files. Changes calculated by Payotte from the published index values.

Prices in the metro area rose modestly over the past year, after a gain of about a fifth over five years.

To see what similar homes sold for, the City offers a Neighborhood Sales Finder. You pick a neighborhood, a property type and a date range, then narrow by price, living area or year built. The City says that neither it nor its Assessor’s Office warrants the accuracy or timeliness of the data.

Costs and taxes

Closing costs, the transfer tax and property tax are covered in our Minnesota guides, so the figures are the same on every page:

The City’s Buying & Selling page also links to a tool to estimate your property taxes.

For the loan itself, see our guides to escrow accounts and homeowners insurance.

Truth in Sale of Housing: a city rule that affects buyers

Minneapolis requires a safe-housing evaluation before certain homes are sold. According to the City:

  • It applies to single-family houses, duplexes, townhouses and first-time condominium conversions.
  • The seller must have a full Truth in Sale of Housing (TISH) report before showing the property.
  • It applies to sales by owner, sales through an agent, contract for deed and other title transfers.
  • A property does not need a report if the City has issued a Certificate of Code Compliance (valid up to one year) or a Certificate of Occupancy for a new building (good for one sale).
  • Buyers can search a property’s address on the City’s site to see whether a report exists, and a buyer can file an acknowledgement of responsibility for required repairs on a home they are buying.

Read the report with your home inspection. The evaluation is a city safety check, not a full inspection. Our page on seller disclosure in Minnesota covers what the seller must tell you under state law.

Help with the purchase

The City offers a down payment assistance loan for low-income first-time buyers: a 30-year deferred mortgage with no interest, for $10,000 (income at or below 80% of the area median income) or $20,000 (income below 60%). You apply through a City partner organization. Details, income limits and the state program are in our Minnesota first-time buyer programs article.

If you buy a rental building

Every rental property in Minneapolis must have a license (City of Minneapolis). Selling an affordable rental building triggers an advance-notice process: the owner notifies tenants and the City 60 days before putting it up for sale, and the new owner must send a notice within 30 days of taking ownership. Our tenant rules guide covers deposits, evictions and rent rules.

Minnesota guides for Minneapolis buyers

Frequently asked questions

What is the median home price in Minneapolis?

The Census Bureau’s 2025 American Community Survey puts the median value of owner-occupied homes in the city of Minneapolis at $357,800 (±$12,741). This is what owners think their home is worth, not the median sale price of recent sales.

Are home prices in Minneapolis going down?

No. According to the FHFA purchase-only index, prices in the Minneapolis–St. Paul–Bloomington metro area rose 2.3% between the second quarter of 2025 and the second quarter of 2026. Over five years, they rose 20.5%.

What is a Truth in Sale of Housing report?

A safety evaluation of a home that the City of Minneapolis requires before the sale of a single-family house, duplex, townhouse or first-time condominium conversion. The seller must have it before showing the property.

Does Minneapolis offer down payment help?

Yes. The City offers an interest-free 30-year deferred loan of $10,000 or $20,000, depending on income, to low-income first-time buyers who complete a homebuyer class.

Do landlords need a license in Minneapolis?

Yes. The City says every rental property in Minneapolis must have a license. Check it before buying a rental.

More Minnesota guides

Sources

Questions about buying a home in Minneapolis

How much is property tax in Minneapolis?

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 Minneapolis?

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 Minneapolis?

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 Minneapolis?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Minneapolis ($362,200) equals 22 years of the median gross rent ($1,371 a month), both from Census ACS 2020-2024.

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

Professionals by sector of Minneapolis

Who licenses each trade in Minnesota

Other large cities: see cities in Minnesota.

Data sources for the figures above

Minnesota · All states · Federal guides