Most Affordable Areas in Minneapolis, MN
We know that finding a great place to live on a budget can feel overwhelming, especially in a city with rising housing costs. When you're searching for the most affordable areas Minneapolis MN, you want neighborhoods that offer reasonable rent or home prices without sacrificing safety, convenience, or quality of life.
The good news? Minneapolis has several budget-friendly neighborhoods that provide excellent value—areas where you can find affordable housing, access to public transportation, local amenities, and genuine community without breaking the bank. Whether you're a student, young professional, or family watching your budget, these neighborhoods deliver affordable living in Minnesota's largest city.
Mint Moving has helped countless budget-conscious residents relocate throughout Minneapolis. We understand what makes these affordable areas special and how to find value in Minneapolis' diverse neighborhoods. This guide breaks down the cheapest places to live in Minneapolis MN, giving you the practical information you need to choose affordable housing that fits your lifestyle.
What Makes Minneapolis Neighborhoods Affordable
Before diving into specific areas, understanding what creates affordability helps you evaluate options:
Lower Housing Costs: Neighborhoods farther from downtown Minneapolis or trendy districts typically offer lower rents and home prices. You'll find 1-bedroom apartments starting around $900-$1,200 monthly in affordable areas versus $1,400-$2,500+ in premium neighborhoods.
Good Public Transit Access: Metro Transit bus routes and light rail connections enable car-free or car-light living, eliminating vehicle ownership costs that can exceed $500-$800 monthly.
Essential Amenities Nearby: Affordable doesn't mean inconvenient. The best budget-friendly neighborhoods provide grocery stores like Aldi, Cub Foods, and local markets, plus banks, pharmacies, and basic services within reasonable distance.
Diverse Housing Stock: Areas with mix of older apartment buildings, smaller homes, and various housing types typically offer more affordable options than neighborhoods dominated by new luxury construction.
Top Affordable Neighborhoods in Minneapolis
Phillips
Phillips sits south of downtown Minneapolis and ranks among the city's most affordable neighborhoods. This diverse area offers some of Minneapolis' lowest rents while maintaining good transit access and community amenities.
Why It's Affordable:
- 1-bedroom apartments: $850-$1,200/month
- Studio apartments: $700-$1,000/month
- Older housing stock keeps costs down
- Higher density creates more rental inventory
What You Get:
- Walking distance to Midtown Global Market—a food hall featuring diverse international cuisines and vendors
- Access to Chicago Avenue commercial corridor with services and restaurants
- Multiple bus routes connecting to downtown and other neighborhoods
- Proximity to Powderhorn Park for recreation
Best For: Students, recent graduates, young professionals on tight budgets, diverse community seekers
Phillips experiences higher crime rates than some Minneapolis neighborhoods, so research specific blocks and buildings carefully. The area near Abbott Northwestern Hospital generally feels safer than blocks farther south.
Powderhorn
Adjacent to Phillips, Powderhorn centers around the beautiful Powderhorn Park—a 65-acre park with lake, recreation center, and community events. The neighborhood offers affordable living with more residential character than denser Phillips.
Why It's Affordable:
- 1-bedroom apartments: $900-$1,300/month
- Small houses available for rent: $1,400-$1,800/month
- Mix of apartments and single-family homes
- Slightly removed from premium areas
What You Get:
- Direct access to Powderhorn Park for swimming, sports, picnics
- Bloomington Avenue commercial district with local businesses
- Good bus connections via multiple routes
- Community-oriented with active neighborhood associations
Best For: Families seeking affordability with outdoor space, budget-conscious renters wanting neighborhood feel.
The area has gentrified somewhat in recent years, bringing improvements but also gradual rent increases. Act quickly when finding good deals.
Longfellow
Longfellow spans a larger area in south-central Minneapolis, offering varied sub-neighborhoods with generally affordable options. Areas near Longfellow commercial district and Minnehaha Avenue provide good value.
Why It's Affordable:
- 1-bedroom apartments: $950-$1,400/month
- 2-bedroom apartments: $1,200-$1,700/month
- Diverse housing options across different blocks
- Some areas farther from expensive lake neighborhoods
What You Get:
- Minnehaha Falls nearby—Minneapolis' most visited park with 53-foot waterfall
- Blue Line light rail access for quick downtown commutes
- Growing commercial districts with Copper Hen Cakery and other local spots
- Mix of long-term residents and newcomers
Best For: Budget-conscious families, professionals wanting affordability with transit access, outdoor enthusiasts
Longfellow's size means neighborhood character varies significantly—blocks near Hiawatha Avenue differ from quieter residential streets. Visit specific areas before committing.
Midtown (Corcoran, Standish)
The Midtown area encompasses several neighborhoods including Corcoran and Standish, positioned along Lake Street with excellent access to transit and urban amenities.
Why It's Affordable:
- 1-bedroom apartments: $900-$1,350/month
- Proximity to services without premium lakefront pricing
- Good rental inventory from various eras
- Transit-oriented development keeping costs reasonable
What You Get:
- Lake Street corridor with Mercado Central—Latino marketplace with food vendors and shops
- Blue Line light rail running along Hiawatha Avenue
- Midtown YWCA with fitness facilities and programs
- Growing restaurant scene and local businesses
Best For: Transit commuters, diverse community seekers, young professionals balancing affordability and convenience.
Lake Street experienced challenges during 2020 civil unrest but continues rebuilding with new businesses and community investment.
Columbia Heights (Technically Separate City, Functionally Connected)
While technically its own municipality, Columbia Heights functions as an affordable Minneapolis alternative with seamless connections to the city. Located northeast of Minneapolis, it offers some of the region's best housing values.
Why It's Affordable:
- 1-bedroom apartments: $850-$1,150/month
- Small homes available: $200,000-$280,000
- Lower property taxes than Minneapolis
- Older but well-maintained housing stock
What You Get:
- Small-town feel with city amenities
- Columbia Heights Public Schools—separate district from Minneapolis
- Local commercial district along Central Avenue
- Multiple parks and recreation facilities
- Bus routes connecting to Minneapolis
Best For: Families seeking home ownership affordability, budget-conscious residents okay with slightly less urban environment.
Columbia Heights provides exceptional value for first-time homebuyers priced out of Minneapolis proper. For broader regional options, explore Minneapolis, MN Suburbs Guide.
Northeast Minneapolis (Select Areas)
While some Northeast Minneapolis sections have gentrified into trendy, expensive areas, pockets of affordability remain, particularly farther from downtown along Central Avenue.
Why It's Affordable:
- 1-bedroom apartments: $950-$1,450/month (varies significantly by specific location)
- Some older buildings with lower rents
- Areas farther from Mississippi River and downtown
What You Get:
- Access to Northeast's brewery scene like indeed brewing and arts culture
- Holy Land and other Middle Eastern markets and restaurants
- Bus routes along Central Avenue and University Avenue
- Proximity to University of Minnesota (10-15 minutes)
Best For: Young professionals wanting urban character on budget, students, creative types
Northeast's affordability varies dramatically block-by-block. Research specific areas carefully—some streets remain budget-friendly while others have become quite expensive. For young professional perspectives, see Young Professional Areas in Minneapolis, MN.
Understanding Minneapolis Affordable Housing Costs
Here's what budget-conscious residents typically spend in affordable Minneapolis neighborhoods:
Rent (1-Bedroom Apartment):
- Most affordable areas: $850-$1,200/month
- Moderate areas: $1,200-$1,600/month
- Premium areas: $1,600-$2,500+/month
Home Prices:
- Affordable neighborhoods: $180,000-$280,000
- Moderate neighborhoods: $280,000-$400,000
- Premium neighborhoods: $400,000-$800,000+
Utilities (Monthly Average):
- Electric/gas: $80-$150
- Internet: $50-$80
- Renter's insurance: $15-$25
Transportation:
- Metro Transit monthly pass: $75-$105 (cheaper than vehicle ownership)
- Car ownership alternative: $400-$800/month (payment, insurance, gas, parking)
For comprehensive cost analysis, see our complete guide to moving to Minneapolis for full breakdown of Minneapolis living expenses.
Living on a Budget in Affordable Minneapolis Neighborhoods
Beyond choosing affordable neighborhoods, smart strategies stretch your budget further:
Skip the Car: Metro Transit provides extensive bus and light rail service. Many affordable neighborhoods feature good transit access, making car-free living viable and saving significant money.
Shop Strategically: Affordable neighborhoods often feature budget grocers like Aldi, Cub Foods, and ethnic markets offering excellent values on produce and staples. Midtown Global Market provides diverse, affordable food options.
Use City Parks: Minneapolis Park and Recreation Board maintains 180+ parks with free recreation including beaches, trails, sports facilities, and fitness equipment. Affordable neighborhoods like Powderhorn and Longfellow offer excellent park access.
Consider Roommates: Splitting 2-3 bedroom apartments or houses dramatically reduces per-person housing costs. A $1,500 2-bedroom split becomes $750 each—cheaper than many studios.
Look at Older Buildings: Newer construction commands premiums. Older apartment buildings (1960s-1990s) with fewer amenities often cost 20-30% less while providing perfectly functional housing.
Safety Considerations in Affordable Areas.
Affordable Minneapolis neighborhoods experience varied crime rates. Some affordable areas maintain good safety records; others require extra caution:
Research Specific Blocks: Crime varies street-by-street within neighborhoods. The Minneapolis Police Department Crime Dashboard provides searchable crime data by address.
Visit at Different Times: Walk around potential neighborhoods during day and evening to assess comfort level and activity patterns.
Talk to Current Residents: Current tenants provide honest perspectives about safety, management responsiveness, and building/neighborhood issues.
Basic Precautions: In any urban area—lock doors and vehicles, secure packages, use good locks on bikes, stay aware of surroundings.
For neighborhoods prioritizing safety above all else, explore Safest Neighborhoods in Minneapolis, MN to understand the trade-offs between maximum safety and affordability.
Schools in Affordable Minneapolis Neighborhoods
For families, school quality matters alongside affordability. Minneapolis Public Schools serves most city neighborhoods with varying school quality by location.
Affordable neighborhoods typically attend different schools than premium areas, but quality schools exist throughout the district:
- Research specific school ratings and parent reviews
- Consider school choice and magnet programs within MPS
- Visit schools personally before committing to neighborhoods
- Understand that school quality varies more within district than across expensive versus affordable neighborhoods
Families prioritizing both affordability and top-tier schools should compare Minneapolis options with Best Family Neighborhoods in Minneapolis, MN to understand the full landscape.
Making Your Move to Affordable Minneapolis
Once you've chosen your budget-friendly Minneapolis neighborhood, Mint Moving makes your transition smooth and affordable:
Residential Moving: Whether moving into a small house or larger rental, we handle all household items carefully and efficiently.
Apartment Moving: Our crews expertly navigate apartment building logistics—stairs, elevators, narrow hallways—in affordable housing complexes throughout Minneapolis.
Local Moving: For Minneapolis residents relocating between neighborhoods (maybe upgrading from Phillips to Longfellow or from Columbia Heights to Northeast), we provide quick, efficient local moves.
We understand budget constraints matter when you're choosing affordable neighborhoods—our transparent pricing and efficient service ensure your moving costs stay reasonable too.
Your Next Steps: Finding Affordable Minneapolis Housing
The most affordable areas Minneapolis MN offers—Phillips, Powderhorn, Longfellow, Midtown neighborhoods, Columbia Heights, and select Northeast areas—provide genuine value for budget-conscious residents. You'll find lower rents and home prices while maintaining access to Minneapolis' parks, transit, jobs, and urban amenities.
Start your housing search by:
- Setting your maximum budget (remember 30% of gross income rule for housing)
- Identifying your must-haves (transit access, parking, specific area, etc.)
- Browsing listings in these affordable neighborhoods
- Visiting in person to assess comfort with specific blocks and buildings
- Acting quickly when you find good deals—affordable housing moves fast
Contact Mint Moving today to discuss your move to affordable Minneapolis housing. We'll help you relocate efficiently so you can start enjoying your new budget-friendly neighborhood right away.
Your affordable Minneapolis life awaits—where you can enjoy this vibrant city without spending your entire paycheck on housing. Welcome home.


