CALCMONEY // HOME AFFORDABILITY // MN // MINNEAPOLIS
How much house can you afford in Minneapolis? Based on local median home prices, current MN mortgage rates, and Minneapolis property tax data.
$355,000
$2,383/mo
$102,122/yr
$248,714
Monthly housing costs of $2,383 represent 36.7% of Minneapolis's median gross monthly income ($6,500/mo). At 36.7%, median-income buyers in Minneapolis are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $355,000 |
| Down Payment (20%) | $71,000 |
| Loan Amount | $284,000 |
| Monthly PI Payment | $1,880 |
| Monthly Property Tax | $355 |
| Monthly Insurance Est. | $148 |
| Total Monthly PITI | $2,383 |
| Housing Cost % of Income | 36.7% |
| Required Income (28% rule) | $102,122/yr |
| Max Affordable Home | $248,714 |
$12,425
$3,013/mo
Minneapolis Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $355,000 | Minneapolis city median |
| Down Payment (20%) | $71,000 | Conventional loan |
| Monthly PITI | $2,383 | 6.95% rate, 30yr fixed |
| Required Income (28% rule) | $102,122 | Annual gross |
| Max Affordable Home | $248,714 | Based on median income |
| FHA Down (3.5%) | $12,425 | Minimum FHA |
| Housing Cost % of Income | 36.7% | Median income: $78,000/yr |
| Property Tax Rate | 1.2% | $4,260/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Minneapolis is $355,000, with a local 30-year mortgage rate of 6.95%. A buyer putting 20% down carries a loan of $284,000, generating a monthly P&I payment of $1,880. Adding property taxes ($355/mo) and homeowners insurance ($148/mo) brings total monthly PITI to $2,383.
Minneapolis's property tax rate of 1.2% is near the national average, adding a standard increment to monthly housing costs. On the Minneapolis median home, that is $355/month, or $4,260 per year.
Minnesota levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Minneapolis should factor state tax liability into their overall housing budget — mortgage interest may be deductible on both federal and state returns.
Using the 28% rule, a household earning Minneapolis's median income of $78,000/year can afford up to $1,820/month in total housing costs. Based on Minneapolis's mortgage rate of 6.95% and property tax rate of 1.2%, that translates to a maximum affordable home price of approximately $248,714 with 20% down on a 30-year loan.
To afford the median Minneapolis home priced at $355,000, you need an annual gross income of approximately $102,122. Total monthly housing costs (principal and interest of $1,880, property taxes of $355, and insurance of $148) come to $2,383/month, which equals 28% of the required income.
At the median home price of $355,000 and median household income of $78,000, the total monthly housing cost of $2,383 represents 36.7% of gross monthly income. This is well above the standard 28% threshold, making Minneapolis a challenging market for buyers at median income.
A conventional 20% down payment on the median Minneapolis home of $355,000 is $71,000. An FHA loan requires just 3.5% down — $12,425 — but adds mortgage insurance of roughly $243/month, bringing total FHA payments to $3,013/month.
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