Minneapolis’ Best Affordable Neighborhoods for Renters on a Budget

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Minneapolis has been a standout destination for apartment hunters, and it’s easy to see why. In 2024, the city consistently ranked as the most sought-after place for renters, according to RentCafe.com’s monthly rental activity reports. With its rich arts scene, stunning parks, and strong economy, Minneapolis offers a dynamic urban lifestyle combined with Midwestern warmth.

The city’s appeal goes beyond its cultural and recreational offerings. Minneapolis boasts a cost of living that is 2% lower than the Minnesota state average and 6% below the national average. For context, the average rent for an apartment in Minneapolis is $1,680, while the national average rent is $1,748. This makes it a prime choice for renters in search of quality housing options in affordable neighborhoods. However, finding renting spots that balance budget-friendliness with a great quality of life remains a key concern in 2025 as well.

Fortunately, Minneapolis is home to several affordable neighborhoods that meet these criteria. Whether you’re a young professional, a family, someone seeking a fresh start, or a local looking for better deals in terms of rental apartments, the city offers a range of options to fit your needs. Here are the best affordable neighborhoods to consider when looking for apartments in Minneapolis this year.

Tangletown: One of the best affordable neighborhoods for apartment hunters in Minneapolis

Tangletown is a gem for renters who value tranquility and a sense of community. With its tree-lined streets and charming homes, this budget-friendly neighborhood is perfect for those who love quiet, walkable areas. Plus, apartments in Tangletown have an average monthly rent of $1,274. Those renting in this neighborhood are close to Minnehaha Creek, where they can enjoy scenic trails and relaxing afternoons outdoors.

This neighborhood is also home to excellent schools, local cafes and easy access to shopping. For renters who commute, Tangletown provides convenient connectivity to downtown Minneapolis. Affordable rents and a laid-back vibe make Tangletown one of the best affordable neighborhoods to rent in Minneapolis in 2025.

King Field: A foodie’s paradise with affordable apartments

King Field is another great option for renters seeking affordability with a splash of culture and culinary delights. Known for its thriving food scene, King Field is dotted with trendy restaurants, bakeries, and coffee shops like Five Watt Coffee and Patisserie 46. Plus, apartments in King Field rent for $1,274, on average — no wonder this budget-friendly neighborhood is so popular.

Renters in King Field enjoy easy access to parks like Martin Luther King Jr. Park, where residents gather for sports and picnics. The community vibe is strong, and the affordability of apartments in this area makes it one of the sought-after affordable neighborhoods for renters in Minneapolis.

Diamond Lake: Lakeside living without breaking the bank

If lakeside living appeals to you, Diamond Lake is the ideal spot. With rents averaging $1,278, this affordable neighborhood offers a mix of urban convenience and natural beauty. The namesake Diamond Lake provides opportunities for outdoor activities like fishing, walking, and picnicking, while nearby trails cater to biking enthusiasts.

Renters here appreciate the peaceful atmosphere paired with easy access to major thoroughfares like I-35W, making it simple to get around the city. Attractions such as Todd Park and the serene Lake Nokomis are just a short distance away, ensuring that you’re never far from outdoor adventures.

Morris Park: Community-oriented and budget-friendly

With apartments renting for an average of $1,288, Morris Park stands out as a budget-friendly neighborhood for renters who prioritize community and convenience. Known for its close-knit vibe, this neighborhood is packed with parks, playgrounds, and family-friendly activities. Morris Park itself is a hub for sports and relaxation, while nearby Bossen Field Park offers even more recreation options.

Local amenities like charming eateries and retail shops cater to residents’ everyday needs. With affordable apartments and a warm, welcoming community, Morris Park continues to be one of Minneapolis’ more popular affordable neighborhoods.

Stevens Square-Loring Heights: Affordable living near downtown Minneapolis

For renters who want to be close to the action without paying sky-high rents (apartments here average $1,385), Stevens Square-Loring Heights is the perfect affordable neighborhood. This historic area is known for its charming architecture and proximity to downtown Minneapolis, making it a hotspot for young professionals.

Local highlights include Loring Park, where community events and activities abound, and the Minneapolis Sculpture Garden, home to the iconic Spoonbridge and Cherry sculpture. The neighborhood also boasts an array of dining options and artsy hangouts, ensuring there’s always something to do.

As 2025 unfolds, Minneapolis continues to prove that affordability and quality of life can go hand in hand. Whether you’re drawn to the peaceful streets of Tangletown or the vibrant energy of Stevens Square-Loring Heights, these neighborhoods provide a range of options for renters looking to make the most of their budgets.

If you’re ready to explore these affordable neighborhoods further, start your apartment search today. Or, if you’re interested in budget-friendly areas in other cities, check out our guides for affordable neighborhoods in Reno, NV; Salt Lake City; Fayetteville, NC; Hialeah, FL; Columbus, OH;  Washington, D.C.St. Paul, MN; and Knoxville, TN.

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Veronica Grecu is a senior creative writer and researcher for RentCafe. With more than 10 years of experience in the real estate industry, she covers a variety of topics in residential and commercial real estate, including trends and industry news. Previously, she was involved in producing content for Multi-Housing News, Commercial Property Executive and Yardi Matrix. Veronica’s academic background includes a B.A. in Applied Modern Languages and an M.A. in Advertising and PR.

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