Apartment Acquisitions · Duluth
Sell Your Commercial Property In Duluth, MN
Skyline Capital Investments buys commercial apartment buildings of 5+ units in Duluth and across St. Louis County — listed or off-market, stabilized or value-add. Get clear feedback on your deal, typically within 48 hours.
- Clear feedback on your deal, typically within 48 hours
- 5 to 100+ units, stabilized or distressed, listed or off-market
- Owners, agents, and brokers welcome — every conversation is confidential
We buy:Tired landlordsEstate & trust sales1031 exchangesDeferred maintenanceHigh vacancyPartnership splits
Duluth Submarkets: Lakeside · West Duluth · Hermantown · Superior, WI — St. Louis County, MN
The Duluth Market
What Drives Rentals In Duluth
Duluth holds 87,093 of St. Louis County's 200,123 residents, and 40.6% of its households rent, per the Census Bureau's ACS 2020-2024 estimates. Median gross rent is $1,087 a month. HUD's FY2027 two-bedroom fair market rent for the Duluth, MN-WI MSA is $1,207.
Owners who want to sell commercial property in Duluth, MN are working in a port and health care city. Essentia Health counted 7,701 employees in 2025, and rental vacancy sits at 2.5%. This profile covers who rents, what they pay and how old the apartment stock is. It then works through the St. Louis County tax math for a $2,000,000 building.
The final sections cover the Minnesota statutes and Duluth rules a buyer checks in diligence. Those include deposit interest, the 14-day nonpayment notice, the state limit on local rent control and the rental license transfer. Each figure carries a date and a link to the official page it came from.
Essentia Health payroll
Essentia Health had 7,701 employees in 2025, ranking first among Duluth employers at 13.58% of city employment, up from 5,341 in 2016, per the City of Duluth 2025 financial report.Port of Duluth-Superior
The Port of Duluth-Superior moved 25.3 million short tons in the 2025 season, down 14.6% from 2024, according to the Duluth Seaway Port Authority's January 30, 2026 season report.University of Minnesota Duluth
University of Minnesota Duluth enrolled 9,529 students in fall 2025, per its facts page, and had 1,732 employees in 2025, fifth among Duluth employers in the city's financial report.Our Buy Box
What We Buy In Duluth
Asset Type
Multifamily, 5+ Units
Apartment buildings and income-producing residential.
Size
5 – 100+ Units
Sweet spot: 15–25 units.
Condition
Stabilized To Distressed
Value-add, mismanaged, and high-vacancy properties welcome.
Deal Types
Listed Or Off-Market
Direct-to-owner, pocket listings, portfolios.
Local Market Data
Duluth Apartment Market
Figures gathered October 2026 from public market data.
Who rents in Duluth
Renters occupy 40.6% of Duluth's occupied homes, or 15,211 of 37,447 households, per the ACS 2020-2024 tenure table. St. Louis County sits at 28.8% and Minnesota at 27.8%. Duluth holds 60.6% of all renter households in St. Louis County.
Duluth has a median household income of $68,807 under ACS 2020-2024, per the Census income table. Rental vacancy in Duluth is 2.5% in the ACS 2020-2024 housing profile. St. Louis County reads 4.4% and Minnesota 5.3%.
Health care anchors the job base. Essentia Health had 7,701 employees in 2025, or 13.58% of city employment, per the City of Duluth 2025 annual financial report. Cirrus Aircraft followed with 3,026 and Aspirus St. Luke's with 3,000.
Rents and affordability in Duluth
Median gross rent in Duluth is $1,087 a month under ACS 2020-2024, per the Census median rent table. St. Louis County is $1,013 and Minnesota is $1,280. Annual rent at that median equals 19.0% of the median household income.
Under HUD's FY2027 fair market rents, the two-bedroom figure for the Duluth, MN-WI MSA is $1,207. That is $120, or 11.0%, above the ACS median rent for Duluth.
| Unit size | HUD FY2027 FMR, Duluth, MN-WI MSA |
|---|---|
| Efficiency | $841 |
| One-bedroom | $961 |
| Two-bedroom | $1,207 |
| Three-bedroom | $1,671 |
| Four-bedroom | $2,017 |
In Duluth, 51.2% of renter households pay 30% or more of income on rent, per the ACS 2020-2024 rent burden table. That includes 25.9% who pay half or more. Those shares limit how far renewal increases can go.
Apartment stock in Duluth
Duluth has 8,763 homes in buildings of five or more units, which is 21.9% of its 39,978 housing units. The figure comes from the ACS 2020-2024 units-in-structure table. St. Louis County is at 13.5% and Minnesota at 19.4%.
Small buildings matter here too. Two- to four-unit buildings hold 5,351 homes in Duluth, or 13.4% of the stock. Structures of 50 or more units hold 3,698 homes, or 42.2% of the five-plus total.
The housing stock is old. In Duluth, 77.8% of homes were built before 1980, against 52.1% statewide, per the ACS 2020-2024 year-built table. Homes from 1939 or earlier make up 42.8%, and the median year built is 1951. Owners selling commercial property in Duluth should expect buyers to price boilers, masonry and windows.
Lakeside and West Duluth are neighborhoods inside these figures. Hermantown and Superior, WI are separate cities and fall outside them.
Property taxes in St. Louis County
A $2,000,000 apartment building in Duluth carries about $34,430 of annual property tax at payable-2026 rates. That equals 1.72% of market value. Actual bills depend on the parcel's value, class and taxing area.
Minnesota taxes apartments of four or more units as class 4a at 1.25% of market value, under Minnesota Statutes 273.13. The Department of Revenue class rate table for taxes payable 2026 keeps 1.25%. It marks class 4a as subject to the referendum market value tax and not the state general tax.
St. Louis County's notice of taxes payable in 2026 lists a total local tax rate of 126.874% for Duluth city in school district 709. The market referendum rate there is 0.13556%. Both are stated as percentages.
- Net tax capacity: $2,000,000 x 1.25% = $25,000.
- Tax capacity tax: $25,000 x 126.874% = $31,718.50.
- Referendum tax: $2,000,000 x 0.13556% = $2,711.20.
- Total: $34,429.70 a year, or $860.74 per unit on a 40-unit building.
St. Louis County's rate sheet notes that tax capacities are reduced for tax increment financing and fiscal disparity contributions. For an owner looking to sell commercial property in Duluth, MN, the example above applies the local rate to the full $25,000 net tax capacity, without the fiscal-disparity split.
Value and class appeals start with the assessor, then the local and county boards, per the St. Louis County appeals page. Tax Court appeals are due by April 30 of the year the tax is payable. Minnesota's deed tax is 0.33% of net consideration, or $6,600 on $2,000,000.
Landlord rules in Duluth
Minnesota Statutes 504B.178 sets no dollar cap on deposits, which earn simple interest of one percent a year. A landlord must return the deposit with interest, or a written statement, within three weeks after the tenancy ends. The clock runs from receipt of the tenant's mailing address.
Before filing for nonpayment, a landlord must deliver a written notice of the amount due, under Minnesota Statutes 504B.321. The tenant then has 14 days to pay or move. Month-to-month tenancies end on written notice of one rental interval or three months, whichever is less, under 504B.135.
Minnesota Statutes 471.9996 bars cities from adopting rent control on private residential property. The one exception is a rent ordinance or charter amendment approved in a general election.
Duluth requires a rental license before a unit is rented or advertised, per the city's multi-dwelling license application. That form lists a $325 base fee plus $40 per unit, or $1,925 for 40 units. A housing inspector checks the building against code before the license issues, and owners living over 25 miles away need a local manager.
A license moves to a new owner only through the 2026 rental license transfer application, which carries a $100 fee. For owners who sell commercial real estate in Duluth, MN, that form asks for page one of the closing statement or a contract for deed. Forms are listed on the Duluth Fire Department licenses page.
What this means for an owner in Duluth
Duluth pairs a 40.6% renter share with 2.5% rental vacancy under ACS 2020-2024. Minnesota's vacancy rate is 5.3%, so Duluth runs tighter than the state. Median rent is lower than the state's, at $1,087, so operating costs weigh heavily in pricing.
Employment is spread across several large employers. Essentia Health, Cirrus Aircraft, Aspirus St. Luke's and University of Minnesota Duluth together had 15,459 employees in 2025, per the city report. UMD enrolled 9,529 students in fall 2025, per its facts page.
The port adds swing. The Port of Duluth-Superior handled 25.3 million short tons in 2025, down 14.6% from 2024, per the Duluth Seaway Port Authority. Buyers may ask how much of a rent roll depends on maritime work.
When you sell your apartment building in Duluth, the paper trail matters. Bring the rental license, the St. Louis County tax statement and a deposit ledger with accrued interest. If you plan to sell commercial property in Duluth, MN, Skyline Capital Investments buys apartment buildings of five or more units. Run numbers in the cap rate calculator or see how to sell your apartment building with us.
Before You Sell
What Shapes A Duluth Offer
More about selling in Minnesota →Investing in Duluth? See apartment syndications in Duluth →
- Rental vacancy in Duluth is 2.5% under ACS 2020-2024 table DP04, below St. Louis County at 4.4% and Minnesota at 5.3%.
- Owners who sell multifamily property in Duluth transfer the rental license through a city application with a $100 fee and proof of the closing.
- In Duluth, 42.8% of homes were built in 1939 or earlier under ACS 2020-2024, so buyers price heating, masonry and window work.
- Owners who sell commercial real estate in Duluth, MN face a payable-2026 local tax rate of 126.874% of tax capacity in school district 709.
Seller Guides
Selling A Building In Duluth
Learn More
Taxes & Rules For Duluth Property
The Minnesota rules that shape any deal in Duluth: what a sale costs in tax, how buildings are taxed, what landlords must follow, and how to defer gains.
Duluth Seller FAQ
What is the median rent in Duluth, MN?
Median gross rent in Duluth is $1,087 a month under ACS 2020-2024, against $1,013 for St. Louis County and $1,280 for Minnesota. HUD's FY2027 fair market rent for a two-bedroom in the Duluth, MN-WI MSA is $1,207, or $120 above the city median. Rental vacancy in Duluth is 2.5%, which points to steady demand for units.
How do I sell commercial property in Duluth, MN with tenants in place?
Leases and deposits carry over to the buyer. Minnesota Statutes 504B.178 requires deposits to earn one percent simple interest and to be returned within three weeks after a tenancy ends, so give the buyer a ledger with accrued interest. Share the rental license, recent inspection results and the St. Louis County tax statement early in diligence.
How much property tax does a $2,000,000 apartment building pay in Duluth?
About $34,430 a year as an illustration. Class 4a apartments are taxed on 1.25% of market value, giving $25,000 of net tax capacity. St. Louis County's payable-2026 rate for Duluth in school district 709 is 126.874% of tax capacity, plus a 0.13556% referendum rate on market value. The example uses full net tax capacity, without the fiscal-disparity split.
Does Duluth have rent control?
Minnesota Statutes 471.9996 bars statutory and home rule charter cities from adopting rent control on private residential property. The only exception is a rent ordinance, charter amendment or law approved in a general election. Duluth owners still follow the 14-day nonpayment notice under 504B.321 and the deposit interest and return rules under 504B.178.
What does Duluth require of apartment landlords?
Duluth requires a rental license before a unit is rented or advertised. The multi-dwelling application lists a $325 base fee plus $40 per unit, and a housing inspector checks the building against code before the license issues. Owners living more than 25 miles away need a local manager. Owners who sell multifamily property in Duluth file a $100 transfer application.
What should I know before I sell commercial real estate in Duluth, MN?
Minnesota Statutes 287.21 sets the deed tax at 0.0033 of net consideration when the price exceeds $3,000, or $6,600 on a $2,000,000 sale. St. Louis County hears value and class appeals through local and county boards, and Tax Court appeals are due by April 30 of the payable year. The rental license moves to the buyer only through the city transfer application.
Will you buy a Duluth property that needs work or has high vacancy?
Yes. We regularly evaluate value-add, mismanaged, and distressed multifamily properties and underwrite them as they are today — no repairs or lease-up required before selling.
How does a sale to you work in St. Louis County?
Send the address, unit count, and any financials. We give feedback, then a written letter of intent if it fits, followed by diligence and a closing date that works for you.
Who buys occupied rental property in Duluth?
We do. Skyline Capital Investments is a commercial real estate buyer of 5+ unit multifamily, and we buy apartment buildings with tenants in place, including properties with below-market rents.
What do I need to sell my apartment building in Duluth?
An address and unit count are enough to start. A current rent roll and trailing twelve-month statement let us move to a written offer faster.
Submit A Deal
Selling A Building In Duluth?
Tell us about it. Owners, agents, brokers, and deal finders are all welcome — conversations are confidential.
