Minneapolis, MN · Hennepin County · Population ~429,000 · Chapter 244 (voter-approved Nov 2, 2021) · 2026 cap: 3% · HARD VACANCY CONTROL · No market reset on turnover · CoC after March 1, 2022 = exempt · UMN Twin Cities student market · Dinkytown · Marcy-Holmes · Stadium Village · Minn. Stat. §471.9996 grandfathering
Minneapolis rent control 2026 Chapter 244 of the Minneapolis City Code: 3% annual cap with hard vacancy control — the rent ceiling does NOT reset to market on unit turnover; new tenants inherit the prior ceiling. Voter-approved November 2, 2021 (Question 3). Effective May 1, 2022. CoC after March 1, 2022 = exempt; owner-occupied ≤4 units exempt. Petition available for capital improvements. University of Minnesota Twin Cities (Dinkytown, Marcy-Holmes, Stadium Village, Cedar-Riverside). Minn. Stat. §471.9996 grandfathers Minneapolis and Saint Paul; no new MN city may enact rent control. Hennepin County District Court.
Minneapolis, Minnesota — the largest city in the state (~429,000 residents; metropolitan area ~3.7 million) and the commercial and cultural center of the Upper Midwest — is governed by Chapter 244 of the Minneapolis City Code, a rent stabilization ordinance voter-approved on November 2, 2021 and effective for rent increases on or after May 1, 2022. The 2026 cap is 3% per year — a flat rate, not CPI-indexed. Minneapolis’s ordinance has one distinctive feature that sets it apart from virtually every other U.S. rent-control jurisdiction, including its neighbor Saint Paul: hard vacancy control.
Unlike California, Oregon, Washington DC, New York, and Saint Paul (all of which use vacancy decontrol — the rent resets to market when a tenant vacates), Minneapolis Chapter 244 carries the rent ceiling to the next tenant. A landlord who rented a unit at $1,100 per month in May 2022 and has raised rent 3% annually faces a 2026 ceiling of approximately $1,239 per month even if that tenant moves out and market rent is $1,500 per month. This creates a permanent compounding below-market deficit that grows with every annual cycle without a market reset. Understanding this mechanics is the single most important calculation for any landlord or investor evaluating a Minneapolis rental property.
Draft a Twin Cities notice → Compare all jurisdictionsMinneapolis Chapter 244: legislative history and voter approval
Minneapolis’s rent stabilization ordinance was created by a citizen ballot initiative. On November 2, 2021, Minneapolis voters approved Question 3 — “Shall the Minneapolis City Charter be amended to authorize the City Council to regulate rents on private residential property?” — with approximately 53% voting yes. The vote authorized the City Council to enact rent stabilization; it did not itself set the specific cap percentage or exemption criteria.
The Minneapolis City Council then developed an implementing ordinance, codified as Chapter 244 of the Minneapolis City Code (Title 9). The ordinance was finalized in 2022 and took effect for rent increases announced or effective on or after May 1, 2022. The City Council settled on a 3% standard cap after extensive public hearing. The hard-vacancy-control provision — which prevents rent from resetting to market on tenancy turnover — was a deliberate policy choice distinguishing Minneapolis from Saint Paul’s approach. Saint Paul’s Chapter 193A, also voter-approved November 2, 2021, uses vacancy decontrol.
The 2023 Minnesota legislative session produced Minn. Stat. §471.9996 (as amended by the omnibus housing bill, signed by Governor Walz), which grandfathered both the Minneapolis and Saint Paul ordinances while prohibiting any other Minnesota city from enacting new rent stabilization ordinances. Minneapolis and Saint Paul are the only two Minnesota municipalities with operative rent control as of 2026.
The 3% annual cap: mechanics and calculation
Minneapolis Chapter 244 sets a flat 3% per year standard cap on rent increases for covered residential units. Unlike several peer jurisdictions, the 3% is not indexed to CPI or any external inflation measure:
- California AB 1482: CPI + 5%, capped at 10% (2026: 8.8% statewide, regional variation)
- Oregon SB 611: CPI + 7%, capped at 10% (2026: 9.5%)
- Washington HB 1217: CPI + 7%, capped at 10% (2026: 9.683%)
- Saint Paul Chapter 193A: flat 3% (same as Minneapolis, but vacancy decontrol mechanics differ entirely)
- Minneapolis Chapter 244: flat 3%, no CPI component, hard vacancy control
The calculation mechanics for a single covered unit in Minneapolis are straightforward:
- Maximum increase = prior rent × 0.03 (3%)
- New maximum rent = prior rent × 1.03
- One increase per 12-month period per unit
- Notice period: landlord must provide advance written notice before the increase takes effect (Minnesota Stat. §504B.135(a) requires at least 30 days for monthly tenancies; longer notice periods may apply in specific lease terms)
Dollar matrix for the Minneapolis 2026 3% cap:
| Current rent | Maximum increase | New maximum rent |
|---|---|---|
| $800/month | $24/month | $824/month |
| $900/month | $27/month | $927/month |
| $1,000/month | $30/month | $1,030/month |
| $1,100/month | $33/month | $1,133/month |
| $1,200/month | $36/month | $1,236/month |
| $1,400/month | $42/month | $1,442/month |
| $1,600/month | $48/month | $1,648/month |
| $1,800/month | $54/month | $1,854/month |
| $2,000/month | $60/month | $2,060/month |
Hard vacancy control: the defining feature of Minneapolis Chapter 244
Hard vacancy control is the provision that the rent ceiling for a covered Minneapolis unit does not reset to market rate when a tenant vacates. The new tenant inherits the accumulated rent ceiling from the prior tenancy. This is the most consequential aspect of Minneapolis Chapter 244 for landlords, tenants, and real estate investors.
To understand why hard vacancy control matters, it is necessary to contrast it with the dominant alternative used in virtually every other U.S. rent-control jurisdiction:
Vacancy decontrol (what most U.S. cities use)
Under vacancy decontrol, the rent ceiling for a unit resets to any amount the landlord chooses when a tenancy ends. Once the new tenancy begins, the applicable cap restarts from that new (market) rent.
- California AB 1482: vacancy decontrol (Costa-Hawkins Rental Housing Act, Cal. Civ. Code §1954.53 — landlord may set any initial rent for a new tenancy)
- Oregon SB 611: ORS §90.323 — cap applies to increases on existing tenancies; no restriction on initial rent for new tenancies
- Washington DC: vacancy decontrol under D.C. Code §42-3502.13 (landlord may increase up to 10% above the prior ceiling on a vacancy)
- Saint Paul Chapter 193A: §193A.04(c) — explicit vacancy decontrol; when a tenancy ends voluntarily or through just-cause eviction, rent resets to market for the new tenant
Hard vacancy control (Minneapolis Chapter 244)
Minneapolis Chapter 244 contains no vacancy decontrol provision. When a covered tenancy ends — whether through natural lease expiration, non-renewal, or just-cause termination — the rent ceiling for the unit does not reset. The ceiling that applied to the departing tenant continues to apply to the new tenant, subject only to the 3% maximum annual increase.
This is not merely a technical distinction. It has profound financial implications that compound over time:
Hard vacancy control: worked investment example
Assume a Minneapolis covered unit with an initial rent of $1,100/month at Chapter 244’s effective date (May 2022). The landlord raises rent at the full 3% each year:
- May 2022: $1,100/month (baseline)
- May 2023: $1,133/month (+3%)
- May 2024: $1,167/month (+3%)
- May 2025: $1,202/month (+3%)
- May 2026: $1,238/month (+3%)
After four annual increases, the ceiling is $1,238/month — a 12.5% cumulative increase from the $1,100 starting point. Now assume Tenant A vacates in June 2026 and Minneapolis market rent for the unit is $1,500/month.
In Saint Paul (vacancy decontrol): landlord offers Tenant B at $1,500/month market rent. Going forward, increases are capped at 3% per year from $1,500. The market correction happens at each tenant turnover.
In Minneapolis (hard vacancy control): landlord can charge Tenant B a maximum of $1,238/month — not the $1,500 market rate. The $262/month deficit (17.5% below market) is permanent unless the landlord successfully petitions for a higher increase or the unit becomes exempt through some structural change. Over 12 months, the landlord foregoes approximately $3,144 in rent income compared to market.
Compounding effect: assume this unit cycles through a new tenant every two years (common in student housing near UMN). After the June 2026 turnover, the next tenant (Tenant C) moves in 2028. By then, the ceiling is $1,238 × 1.03 × 1.03 = approximately $1,314. Market rent may be $1,600 by 2028 (assuming ~3.3% annual market rent growth). The deficit is now $286/month, and the market-value gap widens with every cycle.
This compounding-deficit dynamic is the primary reason that the investment calculus for covered Minneapolis rental properties differs materially from comparable Saint Paul properties, even though both cities have the same 3% cap.
Exemptions from Minneapolis Chapter 244
1. New construction (CoC on or after March 1, 2022)
Buildings that received their first Certificate of Occupancy on or after March 1, 2022 are exempt from Chapter 244. This cutoff date is tied to the effective date of the implementing ordinance and reflects a policy intent to exclude newly-built stock from coverage, thereby preserving development incentives for new rental construction.
The Minneapolis CoC cutoff of March 1, 2022 is significantly more recent than Saint Paul’s (2004 CoC for permanent exemption under the 2023 amendment). This means:
- Saint Paul: buildings first occupied after 2004 are exempt — roughly 20+ years of construction in 2026 is outside the cap
- Minneapolis: buildings first occupied after March 1, 2022 are exempt — only construction completed after spring 2022 is outside the cap. The vast majority of Minneapolis’s existing rental stock (built 2022 or earlier) is covered.
The practical effect: Minneapolis has a much larger proportion of its total rental stock subject to Chapter 244 than Saint Paul has under Chapter 193A. A landlord acquiring a Minneapolis building constructed in 2010, 2015, or even 2021 is acquiring a covered building. Only buildings completed after March 2022 are exempt.
2. Owner-occupied small buildings (≤4 units)
An owner-occupied building containing four or fewer residential units is exempt from Chapter 244, provided the owner occupies one of the units as their primary residence. This exemption covers:
- Owner-occupied duplex (2 units): owner lives in one, rents the other — exempt
- Owner-occupied triplex (3 units): owner lives in one, rents two — exempt
- Owner-occupied four-plex (4 units): owner lives in one, rents three — exempt
- Freestanding SFR (single unit): owner rents it entirely while living elsewhere — NOT exempt; covered by Chapter 244
The owner-occupancy condition is not permanent. If the owner moves out of the building and converts it to all-rental, the exemption is lost and Chapter 244 applies. Landlords who own Minneapolis small buildings should track whether owner-occupancy conditions are being maintained, particularly for estate planning or property management situations where the original owner no longer lives on-site.
3. Federally or state subsidized housing
Units that are subject to separate government-mandated rent restrictions — including Section 8 Project-Based Rental Assistance (PBRA), HUD-funded public housing, Low-Income Housing Tax Credit (LIHTC) units with recorded rent covenants, and similar affordable housing programs — are exempt from Chapter 244. These units already have rent restricted through their program requirements, and Chapter 244 would be redundant.
Note: Section 8 Housing Choice Voucher (HCV) tenants who rent from private landlords are NOT in a program-exempt building; the landlord’s building is still a private-market building subject to Chapter 244 if it meets the other coverage criteria. The voucher is a tenant-held subsidy and does not exempt the building from rent stabilization.
The petition process: exceeding the 3% cap
Minneapolis Chapter 244 recognizes that the flat 3% cap may create hardship for landlords facing extraordinary cost increases. The ordinance provides a formal petition mechanism allowing landlords to apply for increases above 3% under specified circumstances.
Capital improvement petitions are the most common basis for above-cap requests. A landlord who makes a substantial capital investment in a covered building — new roof, HVAC replacement, elevator modernization, structural rehabilitation, accessibility upgrades — may petition for a rent increase that reflects a reasonable pass-through of the capital cost, allocated across covered units and amortized over the useful life of the improvement.
Property tax pass-through petitions allow landlords whose property taxes increase substantially above the 3% standard to apply for a higher increase that reflects the per-unit share of the tax burden increase.
Operating cost petitions may be filed for documented extraordinary increases in insurance, building-system utilities, or management costs.
Key procedural points for petitions:
- Petitions must be filed with the administering City of Minneapolis department and include supporting documentation (invoices, tax records, cost estimates)
- Petitions are prospective — the landlord must receive approval before serving the above-cap increase notice to tenants; retroactive petitions are not available
- Tenants receive notice of the petition and have the right to respond and participate in any hearing
- Petition approvals are unit-specific and time-limited; they do not permanently raise the 3% standard cap for the building
- Denied petition + landlord charged above 3% = ordinance violation with full retroactive remedies available to tenants
Rental registration requirement
Minneapolis Chapter 244 requires landlords of covered rental properties to register their units with the City of Minneapolis. Registration serves multiple functions: (1) creates an official record of the covered units and baseline rents; (2) provides a mechanism for tenants to verify whether their unit is covered and what the registered rent history shows; (3) enables the City to audit compliance and identify buildings with potential violations.
Landlords must register each covered rental unit and pay the applicable registration fee. Failure to register does not eliminate the rent cap — covered units are covered regardless of registration status — but unregistered landlords face regulatory penalties and cannot enforce above-cap increases even if otherwise permitted by a petition. Minneapolis also has a broader rental license requirement for residential rental properties (separate from Chapter 244 registration) — landlords must maintain a valid rental license to legally rent units in Minneapolis.
University of Minnesota Twin Cities: market analysis by neighborhood
The University of Minnesota Twin Cities (UMN) is the largest single driver of student housing demand in Minneapolis, with approximately 51,000 students across the Minneapolis and Saint Paul campuses. The Minneapolis campus (East Bank and West Bank) is adjacent to four neighborhoods with high concentrations of Chapter 244-covered rental housing:
Dinkytown (Marcy-Holmes adjacent, north of campus)
Dinkytown (centered along SE 4th Street, SE 14th Avenue, and University Avenue NE) is Minneapolis’s primary student-housing neighborhood. The housing stock is predominantly pre-1990 apartment buildings and converted houses, almost entirely pre-dating the March 2022 CoC exemption threshold. The vast majority of Dinkytown rentals are covered by Chapter 244. Annual student turnover in Dinkytown (12-month leases, nearly universal tenant cycling each May) means the hard-vacancy-control provision has significant financial impact here: landlords face the full ceiling deficit at every annual turnover cycle without the market-reset valve available in vacancy-decontrol jurisdictions.
Marcy-Holmes (East Bank, along University Avenue SE)
Marcy-Holmes is a mixed neighborhood east of the UMN campus with a blend of older covered apartment buildings and newer post-2022 exempt construction. New development along the University Avenue SE transit corridor has produced modern apartment buildings (some post-2022 CoC, potentially exempt) alongside older covered stock. Landlords in Marcy-Holmes should verify individual building CoC dates to determine coverage.
Stadium Village (SE Stadium area, along Washington Avenue SE)
Stadium Village is the primary commercial and residential node directly adjacent to TCF Bank Stadium and the UMN Health Sciences campus. Mixed-use development has produced both older covered buildings and newer post-2022 exempt towers. Graduate students, medical students (UMN Medical School), and law students (UMN Law School) represent a significant portion of Stadium Village tenants; graduate-student leases are typically longer than one year, reducing the annual-turnover frequency compared to Dinkytown.
Cedar-Riverside (West Bank, Interstate 35W corridor)
Cedar-Riverside is one of Minneapolis’s most distinctive neighborhoods — a dense urban neighborhood immediately west of the UMN West Bank campus, home to a large Somali-American community and long-term UMN students. The Cedar Square West towers (1969–1974 construction, pre-dates all exemption thresholds by decades) are among the most significant covered rental properties in Minneapolis by unit count. Many units in Cedar-Riverside are in Section 8 Project-Based programs (exempt from Chapter 244 as subsidized housing). The privately-owned older apartment buildings are covered. Cedar-Riverside’s affordability profile and long average tenancy length mean the 3% cap does more financial work here than in higher-rent neighborhoods — the ceiling is typically further below market than in Dinkytown, but the petition volume is also higher as landlords seek relief for aging building maintenance costs.
Beyond UMN: Minneapolis-wide neighborhood and market analysis
Uptown / Loring Park / Lyn-Lake
Uptown (south of Downtown, west of I-35W) is Minneapolis’s historically active rental market for young professionals and non-student renters. Apartment buildings along Hennepin Avenue and Lyndale Avenue South include a mix of vintage pre-1960 stock (covered), mid-century 1970s-1980s buildings (covered), and newer post-2022 luxury construction (potentially exempt). Higher rents in Uptown ($1,400–$2,000+ for 1BR) mean the dollar value of the ceiling deficit is larger in absolute terms than in Dinkytown.
North Minneapolis (Jordan, Hawthorne, Near North)
North Minneapolis has a high concentration of older SFR and small multifamily housing, predominantly pre-2022 and covered. Many North Minneapolis landlords are small independent owners — the non-owner-occupied SFR population is covered by Chapter 244, and the owner-occupied duplex/triplex population is exempt. North Minneapolis also has higher rates of Section 8 HCV tenants; while the vouchers do not exempt the building, landlords must be careful to apply Chapter 244 ceilings correctly when calculating what the landlord-side rent (as opposed to the HAP payment) should be under HCV renewals.
Phillips / Powderhorn / Whittier
South Minneapolis neighborhoods (Phillips, Powderhorn, Whittier) have older housing stock (predominantly pre-1960 construction, well within Chapter 244 coverage) and a mix of small apartment buildings, duplexes, and freestanding SFR rentals. Median rents are generally lower than Uptown ($900–$1,200 for 1BR), making the 3% cap less onerous in absolute dollar terms but still meaningful as a percentage constraint in a rising-cost operating environment.
Downtown Minneapolis / North Loop
Downtown and the North Loop entertainment district have seen significant new construction since 2020, with many high-rise apartment buildings completing in 2022 or later. CoC dates in the 2022–2025 range may be exempt depending on exact occupancy date. Pre-existing downtown apartment buildings (older 1970s-1990s towers) are covered. Downtown landlords should obtain specific CoC documentation for each building rather than assuming coverage or exemption based on general construction era.
Minneapolis vs. Saint Paul: the definitive comparison
Both Minneapolis and Saint Paul enacted rent stabilization via voter ballot on November 2, 2021, both have a 3% standard cap, and both are grandfathered under Minn. Stat. §471.9996. But they are fundamentally different ordinances for investment purposes:
| Feature | Minneapolis Chapter 244 | Saint Paul Chapter 193A |
|---|---|---|
| Standard annual cap | 3% (flat, not CPI-indexed) | 3% (flat, not CPI-indexed) |
| Vacancy control type | Hard vacancy control — ceiling carries to next tenant | Vacancy decontrol (§193A.04(c)) — rent resets to market on turnover |
| Exemption cutoff (CoC) | March 1, 2022 (only ~3 years of construction exempt in 2026) | 2004 CoC permanent (20+ years of construction exempt in 2026) |
| SFR coverage | Non-owner-occupied SFR: COVERED. Owner-occupied ≤4 units: exempt. | SFRs explicitly covered — unique among RentCeiling-modeled jurisdictions |
| Above-cap tiers | Petition process only (capital improvements, property tax, operating costs) | Four-tier system: §193A.04(a) 3%, §193A.05 3–8% self-cert, §193A.06 8–15% staff, §193A.07 15%+ hearing |
| Investment outcome on turnover | Ceiling deficit compounds — below-market rent permanent without petition | Market reset at every turnover — ceiling restarts from market rent |
| Enforcement body | Minneapolis Regulatory Services; Hennepin County District Court | Saint Paul RCOO (Rental Certification of Occupancy); Ramsey County District Court |
| State grandfathering | Minn. Stat. §471.9996 (2023) | Minn. Stat. §471.9996 (2023) |
Hard vacancy control in a national context
Hard vacancy control is rare in U.S. rent-control policy. The dominant model nationally is vacancy decontrol — the rent cap applies to existing tenancies, but the market is free to set initial rents for new tenancies. This model was effectively mandated at the state level in California by the Costa-Hawkins Rental Housing Act (Cal. Civ. Code §1954.53), which prohibits local ordinances from controlling initial rents for new tenancies. Vacancy decontrol is also the model used in New York RSL (vacancy decontrol for high-income/high-rent units, with preferential rent rules for other units), Oregon SB 611, Washington DC, and Washington State HB 1217.
New Jersey is a notable counterexample: several New Jersey municipalities (including some larger cities) use forms of rent control that restrict initial rents on new tenancies, though the specific mechanics vary by ordinance. Jersey City and Newark have historically imposed some form of vacancy decontrol with allowances.
Minneapolis Chapter 244’s hard vacancy control distinguishes it as one of the most restrictive rent-control frameworks in the United States for covered units, particularly for properties with frequent tenant turnover where the market-reset mechanism is the primary financial valve in other jurisdictions.
Enforcement: Minneapolis Regulatory Services and Hennepin County
Minneapolis Chapter 244 is administered by the City of Minneapolis (the specific administering department handles registration, petition processing, and complaint intake). Tenants in covered units who believe a landlord has charged above the applicable ceiling can file a complaint with the City, which can investigate, order rent reductions, and impose penalties.
Civil actions related to Chapter 244 violations are filed in Hennepin County District Court (Fourth Judicial District), located at 300 S 6th Street, Minneapolis, MN 55487. The Fourth Judicial District handles landlord-tenant matters including Chapter 244 claims, evictions, and related housing disputes.
Tenants asserting Chapter 244 rights may contact the City of Minneapolis tenant hotline and may also access legal aid services through Southern Minnesota Regional Legal Services (SMRLS) and Volunteer Lawyers Network for low-income tenant representation.
Retaliation against tenants who assert Chapter 244 rights — including filing a complaint, participating in a petition proceeding, or organizing with other tenants — is prohibited under Minneapolis Chapter 244 and Minnesota tenant-protection law. A retaliatory eviction or rental license threat creates additional liability for the landlord.
Major employers and housing market context
Minneapolis’s rental market is driven by a diverse employment base anchored by several major corporate headquarters: Target Corporation (900 Nicollet Mall, Minneapolis), Best Buy (Richfield, immediately adjacent), US Bancorp (downtown Minneapolis), Wells Fargo (major regional hub, Wells Fargo Center), UnitedHealth Group (Minnetonka, suburb), Medtronic (Dublin, Ireland-HQ; Minneapolis operations major), Alliant Energy, and numerous smaller financial, healthcare, and technology employers.
The Minneapolis-Saint Paul metro is home to 19 Fortune 500 company headquarters — the highest concentration per capita in the country after New York and Chicago. The professional workforce demands drives demand for 1BR and 2BR rental housing in downtown Minneapolis, Uptown, and adjacent neighborhoods, creating meaningful market-rent pressure in covered Minneapolis neighborhoods where the ceiling deficit (under hard vacancy control) grows with each annual cycle.
Minnesota Statute §471.9996: statewide rent-control preemption history
Prior to the 2021 ballot initiatives, Minnesota had a state law (Minn. Stat. §471.9996) that broadly preempted local rent control ordinances, prohibiting cities from enacting rent stabilization or rent control. The 2021 voter approvals in Minneapolis and Saint Paul were enabled by home-rule charter amendments that constitutionally authorized the cities to act.
In the 2023 legislative session, the Minnesota legislature amended Minn. Stat. §471.9996 as part of the omnibus housing bill (signed by Governor Tim Walz). The 2023 amendment: (1) grandfathered the existing Minneapolis and Saint Paul ordinances, allowing them to remain operative; and (2) prohibited any other Minnesota city or county from enacting new rent control or rent stabilization ordinances.
The result: Minneapolis and Saint Paul are the only two Minnesota municipalities with rent stabilization in 2026, and no new entrants are possible under current state law. Landlords who own rental properties in other Minnesota cities (Duluth, Rochester, Bloomington, Plymouth, Brooklyn Park, St. Cloud) are not subject to any rent cap.
8-step Chapter 244 compliance checklist for Minneapolis landlords
- Verify CoC date. Obtain the Certificate of Occupancy from Minneapolis permits records for your specific building. If CoC issued before March 1, 2022, the building is covered. If CoC on or after March 1, 2022, it is exempt (confirm exact date).
- Check owner-occupancy status. If you own and occupy a unit in a building with 4 or fewer total units, the building may be exempt. Verify that you still live there as a primary residence.
- Register the covered units. If covered, register each rental unit with the City of Minneapolis Chapter 244 registration program. Maintain current registration including any rent history changes.
- Calculate the current applicable ceiling. For each covered unit, the ceiling is the rent as of the most recent increase plus no more than 3% per year for each year since that increase, compounded. Track rent history for each unit, not the building globally.
- Apply the hard vacancy control rule on every turnover. When a tenant vacates, the unit does NOT reset to market. The incoming tenant’s ceiling is the outgoing tenant’s ceiling plus no more than 3% for the applicable period. Do not price a vacant unit at market rate for a new tenancy without first checking whether the building is exempt.
- Serve proper written notice. Minnesota Stat. §504B.135(a) requires at least 30 days’ written notice before a rent increase for monthly tenancies. Give written notice that clearly states the new rent, the effective date, and the amount of the increase. Do not state a percentage increase that exceeds 3% without first obtaining a petition approval.
- Petition before exceeding 3%. If capital improvements, property tax increases, or operating cost increases justify an above-3% increase, file the petition with the City and obtain approval before serving the notice. Above-cap notices served without petition approval are ordinance violations.
- Document everything. Maintain records of: building CoC date; unit registration; every rent increase notice (date served, amount, effective date); petition filings and outcomes; tenant vacate dates; incoming tenant lease commencement dates and starting rent. Chapter 244 claims can go back up to two years; documentation is the primary defense against overpayment claims.
Frequently asked questions about Minneapolis rent stabilization 2026
Does Minneapolis have rent control in 2026?
Yes. Minneapolis Chapter 244 (voter-approved November 2, 2021; effective May 1, 2022) imposes a 3% annual cap on rent increases for covered residential units. Minneapolis has hard vacancy control — the rent ceiling does not reset on unit turnover. Buildings with CoC issued on or after March 1, 2022 are exempt. Owner-occupied buildings with 4 or fewer units are exempt.
What is the Minneapolis 2026 rent increase limit?
3% per year under Chapter 244. This is a flat cap, not CPI-indexed. The ceiling applies to the prior tenant’s rent for a continuing tenancy and, under hard vacancy control, also to a new tenant entering a covered unit. Petition approval is required for increases above 3%.
Does Minneapolis hard vacancy control apply to all units?
Hard vacancy control applies to all covered units under Chapter 244. Exempt units (post-March 2022 CoC, owner-occupied ≤4-unit buildings, subsidized housing) are not subject to either the 3% cap or the vacancy control provision. For covered units, every tenancy — whether a renewal or a new tenant — is subject to the 3% ceiling from the prior tenancy’s rent.
Can I charge a new tenant market rent when the prior tenant moves out?
No, if the unit is covered by Chapter 244. Unlike Saint Paul (vacancy decontrol), California (Costa-Hawkins vacancy decontrol), Oregon, or Washington DC, Minneapolis does not allow resetting rent to market on unit turnover. The new tenant’s maximum rent is the prior tenant’s rent plus the 3% annual increase (if a full 12 months have passed since the last increase). If the unit is exempt (post-March 2022 CoC or owner-occupied ≤4 units), you may charge any rent for a new tenancy.
Is a freestanding SFR covered by Minneapolis Chapter 244?
Yes, if the owner does not live in the property. Unlike the owner-occupied duplex/triplex/fourplex exemption, a freestanding single-family rental house that is entirely rented to a tenant (with the owner living elsewhere) is covered by Chapter 244. The 3% cap and hard vacancy control both apply. This is the same situation as Saint Paul, which also covers non-owner-occupied SFRs (in fact, Saint Paul is unusual nationally for explicitly covering SFRs).
What buildings near the University of Minnesota are covered?
The vast majority of rental buildings in Dinkytown, Marcy-Holmes, Cedar-Riverside, and Stadium Village are pre-2022 and therefore covered by Chapter 244. New construction completed after March 1, 2022 is exempt. Landlords in UMN-adjacent neighborhoods should verify their building’s specific CoC date from Minneapolis permits records. Buildings completed from 2010 through early 2022 are covered; buildings completed from March 2022 onward are exempt.
How do I petition for more than 3%?
File a petition with the City of Minneapolis before serving the above-3% notice to tenants. The petition must document the basis (capital improvements, property tax increase, or operating cost increase), include supporting financial documentation, and identify the per-unit increase amount requested. The City will review the petition and may hold a hearing if tenants contest. Do not serve an above-cap notice prior to receiving petition approval — unauthorized above-3% increases are ordinance violations.
Can other Minnesota cities enact rent control?
No. Minn. Stat. §471.9996 (as amended in the 2023 Minnesota legislative session) grandfathers the Minneapolis and Saint Paul ordinances but prohibits any other Minnesota city or county from enacting new rent stabilization or rent control ordinances. Landlords owning rental property in other Minnesota cities (Duluth, Rochester, Bloomington, Minnetonka, Edina, Plymouth, St. Cloud, and all others) are not subject to any rent cap under state or local law as of 2026.