Average capitalization rate in Minnesota, United States

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Capitalization rate description

A percentage that shows the potential annual return on a real estate investment based on the property's income.

The cap rate helps investors quickly assess and compare the profitability of different property investments.

\(\text{Cap Rate} = \frac{\text{Annual Rental Income} - \text{Annual Expenses}}{\text{Total Purchase Price}}\)

A higher cap rate suggests a potentially more profitable investment, though it should be considered alongside other financial metrics.

Average capitalization rate for residential properties in Minnesota

MedianMeanMode
8.8%
From 2,188,221 homes
8.9%
From 2,188,221 homes
-

Data updated November 14, 2026

Average capitalization rate for residential for cities in Minnesota

LocationMedianMeanMode
Aastad
5.0%
From 121 homes
4.9%
From 121 homes
-
Acoma
10.7%
From 541 homes
10.6%
From 541 homes
-
Acton
11.9%
From 1 home
11.9%
From 1 home
-
Adams
10.7%
From 340 homes
10.7%
From 340 homes
-
Adrian
12.4%
From 2 homes
12.4%
From 2 homes
-
Aetna
8.7%
From 171 homes
7.8%
From 171 homes
-
Afton
6.0%
From 1,407 homes
5.7%
From 1,407 homes
-
Agassiz
7.4%
From 62 homes
7.5%
From 62 homes
-
Agder
7.4%
From 45 homes
7.7%
From 45 homes
-
Agram
8.3%
From 282 homes
8.5%
From 282 homes
-

All cities in Minnesota