Saint Paul, MN — Rental Investment Analysis
🟡MODERATE— average returnsData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, rental properties in Saint Paul, MN yield a 5.0% cap rate. Median home price is $283,500 with 3-bedroom rents at $2,020/month.
Saint Paul is a moderate market — workable but not exceptional for cash flow. Median home price sits at $283,500 — moderate by national standards, requiring a solid down payment but not out of reach. With 3-bedroom rents around $2,020/month, the 5.0% cap rate tells the story. Cash flow is deeply negative at -$294/month with standard assumptions. This market requires appreciation to justify the investment.
At 0.68% on the 1% rule, rents are low relative to purchase prices. You'd need a significant discount from asking price to make the numbers work. DSCR of 0.78 is below 1.0, meaning rental income doesn't cover the mortgage. DSCR lenders will likely decline this market at current prices.
Bottom line: Saint Paul offers a balance of moderate cash flow and growth potential. Good for investors who want some income while building equity over time.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
5.0%
Below average
Monthly Cash Flow
-$294
After all expenses
Price-to-Rent
12.2
Investor-friendly
DSCR
0.78
Fails
Key Metrics
- Median Home Price
- $283,500
- Average Rent (3BR)
- $2,020/mo
- Price-to-Rent Ratio
- 12.2(good)
- 1% Rule
- 0.68%(fails — need 1%+)
- Cash-on-Cash Return
- -5.9%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 4.5%(+0.2% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- +0.2% YoY
Property Tax Rate
1.05%
of assessed value (MN avg)
Median Income
$77,706
household (MN avg)
Rent-to-Income
31.2%
Moderate
Section 8 Max Rent
$2,020/mo
3BR voucher payment
MN Investor Climate
Landlord Friendly
6/10
State Income Tax
Has state tax
Property Tax
1.05% effective
Population Trend
+0.2% (3yr)
Best Zip Codes in Saint Paul for Investors
All Zip Codes in Saint Paul
| Zip | Cap Rate | Cash Flow | Home Price | Rent (3BR) | DSCR |
|---|---|---|---|---|---|
| 55101 | 12.1% | +$882 | $184,281 | $2,590/mo | 1.90 |
| 55114 | 6.9% | +$116 | $280,830 | $2,450/mo | 1.08 |
| 55102 | 6.4% | -$2 | $286,171 | $2,350/mo | 1.00 |
| 55107 | 5.6% | -$186 | $270,954 | $2,000/mo | 0.87 |
| 55130 | 5.4% | -$212 | $251,749 | $1,810/mo | 0.84 |
| 55106 | 5.0% | -$296 | $264,118 | $1,810/mo | 0.79 |
| 55103 | 5.0% | -$293 | $254,028 | $1,730/mo | 0.78 |
| 55119 | 4.9% | -$373 | $303,509 | $2,040/mo | 0.77 |
| 55117 | 4.7% | -$424 | $301,478 | $1,960/mo | 0.74 |
| 55104 | 4.7% | -$442 | $306,472 | $1,980/mo | 0.73 |
| 55116 | 2.8% | -$1,360 | $459,769 | $2,120/mo | 0.44 |
| 55105 | 2.8% | -$1,431 | $476,313 | $2,170/mo | 0.44 |