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Cap Rate Analysis: Bloomington, MN

Investment metrics, interactive calculators, and data-driven analysis for Bloomington rental properties.

Challenging for pure cash flow
Based on $295,000 median price and $1,420/mo median rent
Est. Cap Rate
3.58%
1% Rule
0.48%
Fails
GRM
17.3x
Price / Income
4.7x

Market Data

Median Home Price$295,000
Median Monthly Rent$1,420
Property Tax Rate1.14%
Population90,000
Population Growth0.3% / yr
Median Household Income$62,400
Vacancy Rate4.5%
Annual Appreciation2.5%

Cap Rate Calculator — Bloomington

Pre-filled with Bloomington medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.14% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.94%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,665
net operating income
Gross Rent Multiplier
17.3x
High (>15)
1% Rule
0.48%
✗ Fails
Monthly Cash Flow
$722
before debt service
Annual Breakdown
Gross Rental Income$17,040
Less Vacancy−$767
Effective Income$16,273
Less Operating Expenses−$7,608
Net Operating Income$8,665

Cash-on-Cash Return — Bloomington

Factor in financing to see your actual return on invested capital in Bloomington.

$
$73,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.98%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$82,600
$73,750 down + $8,850 closing
Monthly Mortgage
$1,442
on $221K loan
Monthly Cash Flow
$-618
after all expenses
Annual Cash Flow
$-7,421
before taxes
Cash Flow Breakdown
Monthly Rent$1,420
Less Expenses−$596
Less Mortgage−$1,442
Monthly Cash Flow$-618

Is Bloomington a Good Place to Invest in Rental Property?

Bloomington, MN has a population of 90,000 and has been growing at 0.3% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $295,000 paired with median rents of $1,420/mo produces an estimated cap rate of 3.58%.

Property taxes at 1.14% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.5% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 4.7x, homes cost about 4.7 times the local median income of $62,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: At current median prices, Bloomington is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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