Updated 2026 · Based on median market data for St. Paul, MN
St. Paul sits in the Midwest with a population of 311,527 growing at 0.4% annually. The median home costs $285,000 while rents average $1,380/mo, producing an estimated cap rate of 3.57%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.
St. Paul works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 3.57% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.
Target properties priced 15-25% below the $285,000 median — around $228,000 or less. At this price point with $1,380/mo rents, your cap rate improves to roughly 5.0%. Factor in 1.15% property taxes ($3,278/yr), budget 5% of gross rent for maintenance, and underwrite to a 5% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,889.
Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.
Run the numbers on a specific St. Paul property using our cap rate calculator (pre-filled with St. Paul data). Compare St. Paul against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.