Minnesota Cap Rate Calculator

Calculate cap rates using Minnesota market data. Property tax, insurance, vacancy rates, and other defaults are pre-filled with current Minnesota averages. Net Operating Income ÷ Property Price

Market

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Property Details

Property Price

Annual Gross Rental Income

Operating Expenses(Minnesota defaults)

Total Annual Expenses$13,192

Property Tax(0.99% avg in MN)

Insurance($2,808 avg in MN)

Maintenance & Repairs

Management Fee(8% of rent)

Vacancy Rate($1,060/yr)

Minnesota Market Context

Avg Cap Rate

5.8%

Median Price

$354K

Property Tax

0.99%

Vacancy Rate

5.4%

Local Factors

-Minneapolis-St. Paul has strong corporate employment base (Fortune 500 HQs)
-Rent stabilization ordinance in St. Paul (passed 2021) affects investor returns
-Cold climate increases heating and winter maintenance costs

Sources

World Population Review – Median Home Price FL Probate Law – Property Tax Rates (ACS Data)The Hartford – Insurance Rates iPropertyManagement – Vacancy Rates

Cap Rate

1.8%

Low

Net Operating Income$6,440

Gross Income$19,632

Total Expenses$13,192

Minnesota Avg Cap Rate5.8%

NOI$6,440

Property Tax$3,505

Insurance$2,808

Maintenance$4,248

Management$1,571

Vacancy$1,060

What does this mean?

A cap rate below 4% is typical for premium locations with lower risk but limited cash flow. Common in Class A properties in major metros.

Keep running the numbers

One calculator rarely tells the whole story.

Cap rate tells you the return without financing. Now see what happens when you add a mortgage with Minnesota rates.

Cash on Cash Return

Measure the annual return on your actual cash invested, factoring in financing, expenses, and rental income.

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NOI

Calculate Net Operating Income — the foundation of commercial real estate valuation.

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Gross Rent Multiplier

Quickly screen and compare rental properties by how many years of gross income cover the purchase price.

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