Home Affordability in Minneapolis, MN
The median home price in Minneapolis is $330,000 with a median household income of $63,507. Housing is significantly stretched relative to local incomes.
Median Home Price
$330,000
Median Income
$63,507
Price-to-Income Ratio
5.2x
Est. Affordable Home
$247,000
Property Tax Rate
1.16%
Annual Property Tax
$3,828
Sales Tax Rate
8.03%
Cost of Living Index
109
Buying a Home in Minneapolis
Based on the 28% rule (spending no more than 28% of gross income on housing), a household earning the median income of $63,507 in Minneapolis can afford a monthly housing payment of approximately $1,482. This translates to a home price of roughly $247,000, which is below the median home price of $330,000 — many households may need a higher income, larger down payment, or should consider more affordable neighborhoods.
Property taxes on a median-priced home in Minneapolis would be approximately $3,828 per year ($319/month) at the effective rate of 1.16%.
Down Payment Scenarios
| Down Payment | Amount | Loan Amount | PMI Required |
|---|---|---|---|
| 3% | $9,900 | $320,100 | Yes |
| 5% | $16,500 | $313,500 | Yes |
| 10% | $33,000 | $297,000 | Yes |
| 20% | $66,000 | $264,000 | No |
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