CalculatorMinnesota
Cap rate calculator — Minnesota
Minnesota investors balance cold-climate operating costs with stable tenant demand in many metros. Default rent inputs reflect HUD FMR data—model utilities and maintenance with local specificity. Same math as the national Cap rate calculator; numbers are educational—not lender instructions.
Frequently asked questions
- How do you calculate cap rate on a rental property?
- Cap rate is annual NOI divided by purchase price. NOI is effective gross income after vacancy minus operating expenses like taxes, insurance, and recurring costs.
- What is a good cap rate?
- A good cap rate depends on market risk, asset quality, and growth expectations. Many investors compare cap rate against local comps, financing terms, and target return hurdles.
- Can I save cap rate calculator results?
- This calculator does not save your session. Use a free Veld account to save deals in the deal analyzer and track portfolio assumptions over time.
- What cap rate benchmark should I use in Minnesota?
- Recent residential cap rates in Minnesota are often near 5.6%, but deal quality and neighborhood risk can move that range. Underwrite with your actual 0.99% effective property tax and insurance quotes to avoid overstating NOI.
Real estate investing in Minnesota
Real estate investing in Minnesota
Property tax classifications and special assessments vary. Enter taxes and insurance from sources you trust for that specific parcel.
- Typical 2BR rent
- ~$1,350/mo
- Effective property tax
- ~0.99% of home value
- State income tax
- Up to 9.85%
- Typical cap rate
- ~5.6%
Rent: HUD FMR 2025 · Property tax: Tax Foundation 2022 · Adjust all calculator inputs to match your specific deal.
Other calculators for Minnesota: BRRRR Calculator · STR vs LTR Calculator. All calculators · Investment property calculator