Best places to buy rental properties in Minnesota

February 4, 2022
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Investing in Minnesota

The Land of 10,000 Lakes is a great place to consider investing in rental properties. With hundreds of beaches, a great education system (#6 overall), and strong prospects for future job growth (35%+ over the next decade), it's no surprise why families and professionals want to move to the state.

The Nophin team crunched the numbers and found the five best places to invest in Minnesota rental properties.

Statewide vacancy rates

MN Rental Vacancy Rate via Federal Reserve Bank of St. Louis

Minneapolis, MN

Minneapolis is the largest city in Minnesota and is located north of the Mall of America, one of the largest malls in the world.

  • Population: 429,954
  • Median household income: $66,068
  • Median 1-bedroom monthly rent: $1,230
  • Median listing home price: $339,000

St. Paul, MN

St. Paul is Minnesota's capital city and is located east of Minneapolis. Scotch Tape was invented in the city.

  • Population: 311,527
  • Median household income: $59,717
  • Median 1-bedroom monthly rent: $1,069
  • Median listing home price: $285,000

Duluth, MN

Duluth, located on the corner of Lake Superior, is a tourist destination with the nation's sole freshwater aquarium.

  • Population: 86,697
  • Median household income: $54,084
  • Median 1-bedroom monthly rent: $1,075
  • Median listing home price: $275,000

Rochester, MN

Rochester has one of the best medical systems in the nation as it's home to the Mayo Clinic.

  • Population: 121,395
  • Median household income: $76,034
  • Median 1-bedroom monthly rent: $875
  • Median listing home price: $334,900

St. Cloud, MN

St. Cloud is nicknamed the "Granite City" with active granite quarries since 1868.

  • Population: 68,881
  • Median household income: $50,335
  • Median 1-bedroom monthly rent: $650
  • Median listing home price: $252,500

Nophin is landlord banking and software for rental properties

With FDIC-insured bank accounts and cards that seamlessly integrate with easy-to-use software, Nophin helps landlords increase returns and automate rental property finances. Check out what we offer on the Nophin homepage!


To help us determine the five best cities in all states, the Nophin team used data from several sources including the 2020 United States Census, the Department of Housing & Urban Development, Federal Reserve Economic Data (FRED), the National Association of REALTORS®, Zumper, internal data, and other reputable sources.

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Please note: Nothing above should be construed as legal, investment, tax, nor financial advice. This content is for informational purposes only. Consult a lawyer and/or an accountant if the above is right for your personal situation.

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