House Hacking in the Twin Cities: Numbers, Challenges, and Opportunities

[Mason Vitalis]

House hacking has long been one of the most popular ways for new investors to get started in the Twin Cities. With a strong supply of duplexes, triplexes, and fourplexes in Minneapolis and St. Paul, the strategy is a great way to reduce living expenses while building equity and gaining landlord experience.

But the numbers look a bit different in 2025 than they did even a few years ago:

• Purchase prices: Small multifamily properties in Minneapolis/St. Paul typically range from $300K–$550K, depending on location and condition.

• Rents: Median rents for 2–3 bedroom units are running $1,500–$2,000/month in many neighborhoods.

• Financing environment: Interest rates in the 6–7% range mean the mortgage payment is higher, making underwriting tighter but there's less competition so getting a better deal upfront is more feasible.

Even with these challenges, house hacking can still work here when the numbers are run carefully. For example:

• A $400K duplex with each side renting for $1,600 could cover 50–60% of the monthly mortgage and expenses, allowing the owner-occupant to live significantly below market rent.

• In higher-rent areas, some house hackers still manage to live for free or nearly free especially when we look at triplexes and fourplexes.

The bottom line: it’s not as “easy” as it once was, but house hacking remains a viable strategy — especially for investors who view it as a long-term play combining reduced living costs, equity growth, and rental experience.

👉 I’d love to hear from the community:

• Do you think house hacking in the Twin Cities still makes sense in 2025?

• What metrics do you look for before saying yes to a deal?

• And for those who’ve done it recently — what’s been your biggest lesson learned?