ZIP reports / MN / 55407
ZIP rental intelligence · 2026-06

ZIP 55407, Minneapolis, MN

Asking rent, household capacity, housing stock and local context—kept at their original geographic and measurement scopes.

Direct local rent answer

What does rent cost in ZIP 55407?

The latest Zillow ZORI for ZIP 55407 is $1,482 per month in 2026-06. It is a typical observed asking-rent index across rental types—not an arithmetic average, signed lease or quote for one property.

Zillow asking-rent index$1,4822026-06 · up 3.4% year over year
ACS median gross rent$1,291ACS 2024 5-year survey · ±$65 margin of error
HUD two-bedroom standard$1,709Administrative FMR/SAFMR · not asking rent
Bedroom-level rent benchmarks in ZIP 55407
BedroomsModelled asking-rent lensHUD standardHow to use it
Studio$1,077ZORI scaled by the local HUD bedroom ladder$1,242HUD FMR/SAFMR administrative benchmarkCompare with current same-bedroom listings; do not average these two measures.
1 bedroom$1,218ZORI scaled by the local HUD bedroom ladder$1,405HUD FMR/SAFMR administrative benchmarkCompare with current same-bedroom listings; do not average these two measures.
2 bedrooms$1,482ZORI scaled by the local HUD bedroom ladder$1,709HUD FMR/SAFMR administrative benchmarkCompare with current same-bedroom listings; do not average these two measures.
3 bedrooms$1,962ZORI scaled by the local HUD bedroom ladder$2,262HUD FMR/SAFMR administrative benchmarkCompare with current same-bedroom listings; do not average these two measures.
4 bedrooms$2,195ZORI scaled by the local HUD bedroom ladder$2,531HUD FMR/SAFMR administrative benchmarkCompare with current same-bedroom listings; do not average these two measures.

Bedroom estimates are modelled, not observed rents. Zillow, Census ACS and HUD describe different housing universes and remain separate throughout this report.Zillow pulled 2026-08-08

Median household income$78,464ACS 2024 5-year · ±$4,349 MOE
Renter share41.1%6,078 renter households
Rent burden 30%+53.1%3,227 observed households
Housing vacancy8.0%1,289 of 16,078 units
Six views · one local decision

Read the measures together, without merging them

ZORI tracks observed asking rent, ACS describes occupied renter homes, and HUD publishes an administrative benchmark. The charts preserve those differences and add wider context only where the geography is named.

Three definitions of rent

Useful as a spread, not interchangeable observations.

Three rent measures for ZIP 55407Zillow asking-rent index$1,482ACS median gross rent$1,291HUD two-bedroom standard$1,709

Affordability screen

Annual income implied by 30% of the current ZIP ZORI.

Income screen for ZIP 55407ACS median household income$78,464Income at 30% of ZIP ZORI$59,280

Bedroom ladder

Modelled from ZIP ZORI using the local HUD ladder.

Modelled bedroom rent ladder for ZIP 55407Studio$1,077One bedroom$1,218Two bedrooms$1,482Three bedrooms$1,962Four bedrooms$2,195

Observed renter burden

ACS ZCTA households with computable gross-rent burden.

Observed renter cost burden in ZCTA 5540730% or more of income3,227 householdsBelow 30%2,851 households

ZIP versus wider rent context

Each bar retains its own ZIP, city, county or metro scope.

Asking-rent context for ZIP 55407ZIP 55407$1,482Minneapolis city$1,686Hennepin County county$1,766Minneapolis-St. Paul-Bloomington, MN-WI metro$1,727

Monthly asking-rent history

Direct Zillow ZORI observations over the latest five years. Missing months remain visible gaps.

Five-year direct Zillow asking-rent history for ZIP 55407; missing months remain gaps$1,541$1,424$1,308$1,1922021-062023-122026-06
Five-year change
20.5%exact same-month endpoints
Largest observed drawdown
3.6%peak to a later observed month
Annualized monthly variability
2.9%88 consecutive returns
Monthly coverage
100.0%89 of 89 months
Decision brief

What the evidence says for ZIP 55407

In the direct rolling-three-month ZIP resale observation ending June 30, 2026, the median sold price was $339,423, down 3.85% year over year. At the same point, June 2026 Zillow ZORI—the ZIP’s typical observed asking-rent index—stood at $1,482, up 3.39%. Those directions create the report’s central tension: asking rent rose while the resale median fell. Annualizing ZORI and dividing it by the sale price produces a 5.24% cross-source screening ratio only; it is not a cap rate, net return, expected return, or property yield. Redfin’s observation concerns for-sale resale transactions, whereas ZORI follows asking rents, so it cannot show what a given rental property earned.

The five-digit label 55407 is both a Zillow ZIP market identifier and a match to a Census ZCTA. A ZCTA is a statistical area, not identical to a USPS delivery ZIP, which matters when reading the non-Zillow survey fields. Zillow ZORI is a typical observed asking-rent index blended across rental types, rather than a lease-specific quote. For wider context only, the Minneapolis city Zillow-rent context was $1,686, the Hennepin County Zillow-rent context was $1,766, and the Minneapolis-St. Paul-Bloomington, MN-WI metro Zillow-rent context was $1,727. Each of those city, county, and metro measures exceeds the ZIP reading, but none replaces ZIP-level evidence.

The backward-looking ZORI record supports a stable-growth description rather than an uninterrupted climb. Exact same-month change was 3.39% over one year, compared with annualized 4.00% over three years and 3.80% over five years. Recent growth therefore modestly slows from the longer path but confirms its positive direction; it does not establish a future path. Coverage was 100% through the stated endpoint. Monthly rent changes translate to 2.89% annualized variability, which permits more confidence in the current index than a highly erratic series would. Separately, the maximum peak-to-trough drawdown reached 3.56%, showing that the historical path did have setbacks. Transparent national discovery ranks among history-eligible ZIPs were 704 for momentum, 1,417 for stability, and 693 for the balanced measure, where a lower rank is higher. These are descriptive ranks and backward-looking measurements, not forecasts or investment recommendations.

Different rent universes explain why the ZIP figures should not be substituted for one another. The ACS 2024 five-year survey for the matched ZCTA places median gross rent at $1,291 with a $65 margin of error; it describes occupied renter homes and includes selected utilities, not current asking rent. HUD’s FY2026 fair-market-rent/SAFMR ladder is instead an administrative, bedroom-specific standard—not asking rent—and its two-bedroom standard is $1,709. Scaling ZIP ZORI by that local HUD ladder produces modelled monthly estimates of $1,077 for a studio, $1,218 for one bedroom, $1,482 for two bedrooms, $1,962 for three bedrooms, and $2,195 for four bedrooms. These are modelled estimates, never measured bedroom rents, and they inherit the ZIP index and HUD ladder’s limitations.

Income and burden evidence adds a separate household lens. Matched-ZCTA ACS median household income was $78,464, while the 30% required-income screen for the $1,482 monthly ZORI is $59,280 annually. That screen is arithmetic only: it is not affordability advice and is not an applicant qualification rule. ACS estimates 6,078 renter households, with 3,227, or 53.1%, spending at least 30% of income on gross rent. In wider context only, that burden share exceeds the Minneapolis city scope at 48.1% and the Hennepin County scope at 47.6%; the Minneapolis-St. Paul-Bloomington, MN-WI metro context has a 20.8% rent-to-income measure, which is a different calculation. Burden is household-survey evidence, not proof that any particular available unit is affordable or unaffordable.

Housing supply in the ACS matched ZCTA totals 16,078 units, with an 8.0% vacancy rate, while renters occupy a 41.1% share of occupied homes. Single-family units outnumber units in large multifamily structures, so the stock is not represented by just one building form. ACS separately counts homes vacant for rent, for sale, and seasonal use; those classifications support an area-level view of supply rather than a claim about a unit’s availability, condition, pricing, or lease terms. The ZIP vacancy rate is above both the Minneapolis city context and Hennepin County context. Neither the aggregate vacancy measure nor renter burden establishes the status of any particular unit.

Liquidity signals in the direct rolling-three-month ZIP resale file are firmer than the falling price alone might suggest, without resolving the rent-versus-price tension. The file records 111 homes sold and a median 17 days on market; both active listings and inventory were higher than a year earlier, with 2.2 months of supply. Average sale-to-list was 102.7%, and 51.9% of sales closed above list. These are for-sale marketing and transaction signals, not rental transactions or rental comparables. Thus, the resale price decline challenges the steadier historical asking-rent rise, whereas short marketing time and above-list outcomes show active resale turnover during the observation window. Neither signal proves a cause, predicts a change, or converts the asking-rent screen into property economics.

Several limits remain material. Zillow is an index rather than a count of signed leases; ACS is a multi-year ZCTA survey; HUD is a standard; and Redfin is a rolling resale observation. They differ in timing, population, and purpose, so close-looking figures cannot be merged into a single rent or valuation conclusion. For a specific property, confirm contemporaneous unit-level asking rents, bedroom and bathroom layout, stated utility treatment, lease length, concessions, condition, and availability date. Separately verify recent closed-sale comparables, listing dates, sale-to-list results, and property condition before comparing the resale figures. Check whether the property’s geography truly aligns with the relevant ZIP/ZCTA boundary. Do unit-specific facts preserve or overturn the area-level tension between measured asking-rent history, surveyed burden, and observed resale pricing?

Decision signals

What deserves a closer property-level check

Opposing rent and resale signals

June ZORI was $1,482 after a 3.39% same-month annual increase, while the direct rolling-three-month Redfin median sale price was $339,423, down 3.85% year over year. That divergence is the central observation. The 5.24% annualized-rent-to-price figure is a cross-source screen only, not a property-level performance metric.

Bedroom ladder is modelled rather than observed

The HUD-scaled studio-through-four-bedroom figures are modelled estimates, not recorded bedroom-rent observations. They start with ZIP ZORI and apply the local HUD bedroom ladder. HUD is a bedroom-specific administrative standard, while ACS median gross rent is a separate survey measure, so neither source validates an individual listing’s bedroom rent.

Household burden is elevated in the survey

ACS estimates that 53.1% of renter households spend at least 30% of income on gross rent, above the supplied Minneapolis city and Hennepin County context shares. This is not a measure of a current listing’s affordability because gross rent includes selected utilities and the survey reflects occupied renter homes rather than current asking inventory.

Resale turnover remains active despite lower prices

Redfin’s ZIP resale observation showed short marketing time, sales above list on average, and more than half of sales closing above list, even as the median sale price declined year over year. These facts describe the for-sale market only. They challenge a simple reading of steadily rising asking rents but do not establish rental demand, property economics, or future pricing.

  • A current ZORI snapshot blends rental types and represents asking-rent conditions, so it can differ materially from a specific unit’s lease terms, utility treatment, condition, concessions, and availability date.
  • The matched ZCTA ACS figures are five-year survey estimates of occupied homes, carry stated sampling uncertainty, and do not identify current asking rents or the burden status of a particular rental unit.
  • The bedroom series inherits both the ZIP ZORI index and HUD ladder assumptions. It should not be treated as measured studio, one-bedroom, or larger-unit asking rent evidence.
  • Redfin’s rolling resale indicators describe for-sale listings and completed sales. A lower median sale price alongside quick marketing does not establish a cause, a rental outcome, or a future market direction.
Direct ZIP resale evidence

For-sale liquidity inside ZIP 55407

Redfin reports these as a rolling three-month ZIP observation through 2026-06-30. They describe the for-sale market, not rental vacancy or the rent of a particular property.

Median sale price$339,423-3.9% year over year
Homes sold111rolling three-month observation
Median days on market17 daysfor-sale listing absorption
Months of supply2.2resale inventory relative to sales pace

Activity and available supply

Direct ZIP counts remain separate because each describes a different stage of the resale funnel.

Direct resale activity for ZIP 55407Active listings205Inventory81Pending sales131Homes sold111

Counter-signals before underwriting

A price alone does not reveal how quickly buyers are absorbing available homes.

Inventory direction

81 observed inventory · +20.3% year over year.

Price realization

102.7% average sale-to-list ratio · 51.9% sold above original list.

Early absorption

57.0% went off market within two weeks; compare this with 17 median days on market.

Measurement boundary

Small ZIP samples can move sharply. This rolling period smooths monthly noise but does not replace current address-level sale and rent comparables.

Redfin Data Center · updated 2026-07-03 · exact five-digit ZIP key. Implausible source values are withheld as n/a rather than repaired or inherited from a broader geography.

Wider market evidence

Listing and rental liquidity around the ZIP

These measures are not ZIP observations. They are labelled county or metro context so they can challenge the local story without being copied into it.

Hennepin County listing conditions

3,108 active Realtor.com listings · 37 median days on market · 15.6% price-reduced share · 2026-06.

Minneapolis-St. Paul-Bloomington, MN-WI resale supply

2.0 months of supply · 22 median days on market · 33.8% listings with price drops · Redfin 2026-05-01.

Apartment List metro liquidity

7.3% reported apartment vacancy · 33 days on market. These are direct metro observations and do not describe a particular ZIP unit.

Property-level next step

Compare live same-bedroom listings, concessions, utilities, condition and days listed inside ZIP 55407. The report frames the market; it does not replace a rent roll, lease review or address-level comparable set.

Questions this report can answer

Scope-aware answers

Why is ACS gross rent lower than Zillow ZORI?

ZORI is a current ZIP-level typical observed asking-rent index blended across rental types. ACS median gross rent is a five-year survey estimate for occupied renter homes and includes selected utilities. The series therefore have different timing, populations, and rent concepts, so their difference is not a contradiction.

Are the bedroom figures observed ZIP rents?

No. The studio through four-bedroom figures are modelled monthly estimates created by scaling ZIP ZORI with the local HUD bedroom ladder. They are not measured bedroom rents, signed-lease data, or a substitute for contemporaneous listings matched by bedroom count, utility treatment, condition, and lease terms.

What does the 30% required-income screen mean?

It annualizes the $1,482 monthly ZIP ZORI and divides by 30%, producing $59,280. This is an arithmetic comparison point for the index, not affordability advice, a finding about utilities, or an applicant qualification rule. Individual lease terms and household circumstances are outside the screen.

Does the Redfin price result measure rental performance?

No. Redfin provides a direct rolling-three-month ZIP resale observation covering sold prices, marketing time, inventory, supply, and sale-to-list behavior in the for-sale market. It does not measure rental transactions, lease revenue, expenses, individual-property performance, or the future path of rents or prices.