Sell Your Commercial Property In Minneapolis–St. Paul, MN

Who rents in Minneapolis and St. Paul

The two cities are separate markets. Minneapolis had 427,246 residents in the 2020–2024 American Community Survey and St. Paul had 307,284. Renters hold 100,754 of Minneapolis's 192,734 occupied homes, or 52.3%, against 37.3% across Hennepin County. In St. Paul, renters hold 59,045 of 125,249, or 47.1%, against 39.4% in Ramsey County and 27.8% statewide. Together that is 159,799 renter households, and the cities hold 50.1% and 67.7% of their counties' renters.

Employers come from several directions. Target lists corporate campuses in Minneapolis and Brooklyn Park. UnitedHealth Group reports executive offices at 1 Health Drive in Eden Prairie, and 3M gives 3M Center as its U.S. headquarters, on the campus the City of Maplewood describes. The University of Minnesota Twin Cities enrolled 57,879 students in fall 2025, including 32,632 undergraduates. Minnesota's economic development agency ranks the region 17th most diverse among 384 U.S. metro economies, which spreads tenant demand across industries.

Rents and what tenants can afford

Median gross rent was $1,371 in Minneapolis and $1,281 in St. Paul, below Hennepin's $1,487 and Ramsey's $1,329; the state median is $1,280. Median household income was $80,846 in Minneapolis and $73,394 in St. Paul, against $97,653 in Hennepin, $81,568 in Ramsey and $89,062 in Minnesota. Among Minneapolis renters, 48.1% (about 46,663 households) pay 30% or more of income on housing and 23.2% pay half or more. St. Paul is higher at 49.9% and 25.5%. On that 30% measure, Hennepin County is at 47.6% and Ramsey County at 51.0%.

HUD's FY2027 fair market rents for the Minneapolis-St. Paul-Bloomington area, whose Minnesota county list includes Hennepin and Ramsey, are:

Source: HUD FY2027 FMR schedule. The area spans a wide multi-county region and every unit size, so anyone who wants to sell commercial real estate in Minneapolis–St. Paul, MN should treat it as a regional reference, not a rent ceiling for either city.

The apartment stock

Minneapolis has 92,432 units in buildings of five or more units, 44.2% of its 209,080 housing units, against 33.9% in Hennepin and 19.4% statewide. By size, 7,704 are in 5–9 unit buildings, 14,470 in 10–19, 20,661 in 20–49 and 49,597 in buildings of 50 or more; another 24,507 units sit in two-to-four unit buildings. St. Paul has 49,072 such units, or 36.9% of 133,051, split 6,187, 9,199, 10,581 and 23,105. Combined, that is 141,504 units, with Minneapolis holding 47.7% of Hennepin's and St. Paul 63.9% of Ramsey's.

Both stocks are old. Median year built is 1951 in Minneapolis and 1952 in St. Paul, against 1973 in Hennepin, 1965 in Ramsey and 1979 statewide. Homes built before 1980 are 72.2% of Minneapolis and 77.6% of St. Paul, compared with 52.1% across Minnesota. Since 2010 builders added 23,420 units (11.2%) in Minneapolis and 8,515 (6.4%) in St. Paul; since 2020 the counts are 3,824 and 1,786. Vacancy is 7.8% in Minneapolis (16,346 units) and 5.9% in St. Paul (7,802), against 9.3% statewide. Owners who plan to sell commercial property in Minneapolis–St. Paul, MN should expect buyers to price envelope, mechanical and life-safety work into older buildings.

Property taxes in Hennepin and Ramsey counties

Minnesota values property at market value under Minnesota Statutes 273.11, and section 273.13 sets a 1.25% classification rate for class 4a, residential property with four or more units. Hennepin County sets values as of January 2 each year, compares sales of similar properties, and for income property looks at market rents, vacancy and capitalization rates. It warns that an assessed value may differ from the price you paid.

Hennepin's 2026 final rate cards total 138.270% to 140.407% of net tax capacity for Minneapolis, depending on school and watershed codes, plus a 0.14399% market-value rate. Minneapolis's city rate is 70.922%, against 47.124% in Bloomington and 53.089% in Brooklyn Park, per the rate breakdown. Ramsey's payable 2026 rates for St. Paul total 142.679% to 145.465%, plus a 0.279092% market-value rate. On a $2 million building, class 4a tax capacity is $25,000. That gives roughly $37,447 to $37,982 a year in Minneapolis and $41,252 to $41,948 in St. Paul. Deed tax is 0.0033 plus a 0.0001 Environmental Response Fund tax in both counties, per Minnesota Revenue: $6,800 on $2 million with no assumed debt, due when the deed is recorded.

Landlord rules for Twin Cities owners

St. Paul regulates rent. Voters approved a rent stabilization ordinance on November 2, 2021, with amendments effective January 1, 2023 and June 13, 2025. It limits increases to 3% in 12 months, with a 3% to 8% self-certification path, CPI plus 8% after a just cause vacancy, and staff-approved exceptions. The city rules also describe a new-construction exception. St. Paul issues no rental license but requires a Fire Certificate of Occupancy for non-owner-occupied residential buildings. The Minneapolis rent stabilization page lists voter approval of a 2021 charter amendment, says the council may consider a policy, and says any ordinance would need voter approval.

Minneapolis instead leans on licensing. Every unit where the owner does not live needs a rental license, licenses are not transferable, and the seller must tell the buyer in writing about unresolved violation orders and citations. Its tier system sets routine inspections every eight, five or one year. Statewide, section 504B.178 requires deposits to earn 1% simple interest and be returned or itemized within three weeks. After a sale, the seller must transfer the deposit to the buyer or return it within 60 days. Nonpayment needs a 14-day written notice, and an at-will tenancy ends on written notice equal to the rent interval or three months, whichever is shorter.

What this means if you own a building in Minneapolis–St. Paul

Treat the two cities as separate deals. A Minneapolis owner is selling into a 52.3% renter city with license and inspection costs, while a St. Paul owner faces a higher tax load and a rent cap that buyers will underwrite. If you plan to sell commercial property in Minneapolis–St. Paul, MN, gather rent rolls, deposit ledgers and your license or certificate record first. Our cap rate calculator shows how tax and vacancy move value, and the guide to Minneapolis–St. Paul landlord rules covers the local rules. Send us the address and unit count through our seller page, and we will tell you plainly whether the building fits what we buy, listed or off-market.