A Local Expert’s Guide To the Top 10 Budget-Friendly Neighborhoods to Rent in Minneapolis

I'm Stephanie, your ApartmentHomeLiving.com Local Expert for Minneapolis, MN. I've lived in Minnesota all my life, save for a brief stint in Wisconsin.

Beyond the amazing lakes and the thriving theater scene, one thing, in particular, keeps me firmly rooted in the Twin Cities, even through those harsh winters: the reasonable cost of living.

Yes, there are plenty of pricey rentals and upscale neighborhoods, but there are also many hidden opportunities to enjoy the best of the Cities on a budget.

When you live in Minneapolis, you definitely get what you pay for, as your rental is far more than a place to escape the windchill: it helps you access the best of the Twin Cities — the lakes, the trails, the restaurants and so much more.

If budget is a priority, choosing the right neighborhood is crucial. Some of the city's most underrated areas offer the best deals on rentals without forcing you to abandon all that makes Minneapolis special: the well-maintained parks and trails, plus access to cultural opportunities. Check out these amazing neighborhoods, where you can find affordable rentals and a huge dose of Minnesota Nice.

Como

Como, Minneapolis is not to be confused with St. Paul's Como Park, which offers one of the few promises of warmth in the winter with its lovely conservatory. The Minneapolis version of Como looks a lot different: fewer (and smaller) parks, plus easier access to the U of M.

Because it's so close to Dinkytown, the Minneapolis version of Como tends to attract a lot of students and recent graduates, although many retirees can be found here as well. You'll find more apartments as you head closer to the university. There are also some townhomes, duplexes, and triplexes in the area.

Van Cleve Park provides recreational opportunities, including an ice rink in the winter and basketball or tennis courts in the summer. Roseville, Northeast, and St. Anthony Park are all nearby, giving this neighborhood an unusual mix of college and suburban vibes.

Prospect Park

There will always be a special place in my heart for Prospect Park — this is where my now-husband lived when I first met him. I immediately fell in love with this charming neighborhood: its winding streets, its eclectic (and often adorable) houses, and its proximity to all my favorite Dinkytown haunts.

Of course, no description of Prospect Park would be complete without mentioning the iconic Witch's Hat. Perched on a hill, this tower provides an amazing view of the city. If you're looking for a walkable lifestyle, Prospect Park is a great option — there's always a restaurant or brewery well within reach. 

Given its proximity to the U of M, this neighborhood is surprisingly family-friendly. Many rentals are within walking distance of the Pratt K-5 Community School and the Luxton Park Recreation Center. Some of these rentals are big enough to accommodate families, although student housing is, of course, a big deal in this area. Few other neighborhoods provide such a thorough blend of apartments, townhouses, and single-family, detached homes.

St. Anthony West

'St. Anthony' is a confusing term for Twin Cities locals and visitors alike. There is a suburb known as St. Anthony near New Brighton, plus a St. Paul neighborhood called St. Anthony Park. In Minneapolis, the name St. Anthony references both a beautiful waterfall and two distinct neighborhoods, distinguished primarily by their East and West locations. Actually, make that three — nearby Saint Anthony Main is the ultimate spot for a date night.

While it can be tricky to tell all these St. Anthony locations apart, St. Anthony West has something special going for it: a gorgeous location along the Mississippi River. The riverside gem Boom Island Park may be best known for hosting the annual Basilica Block Party, but it's worth visiting year-round for its stunning trails.

This is not as much of a rental hot spot as other trending Minneapolis neighborhoods, but there are a few modest apartments along with some newer builds that offer plenty of amenities. There is no shortage of small, single-family homes in this area, not to mention several duplexes and triplexes.

St. Anthony East

At first glance, St. Anthony East seems a lot like its similarly named counterpart, St. Anthony West. In reality, however, these neighborhoods are quite different. St. Anthony West has more parks and trails as well as more single-family homes. St. Anthony East is smaller and has fewer amenities.

If you call St. Anthony East home, it'll take you longer to reach the hottest restaurants or the most scenic parks, but that's not always a problem — many residents are perfectly happy to enjoy the quieter atmosphere.

Like St. Anthony West, this area blends older apartments and single-family homes to great effect. Young professionals appreciate the budget-friendly living options and the proximity to trendier parts of town, but many families also happily settle down in this neighborhood, which is home to Webster Elementary.

Powderhorn

Intrigued by the dynamic atmosphere of the Powderhorn neighborhood? There's a lot to love about this area, but you will want to understand the differences between Powderhorn and the similarly named Powderhorn Park.

Powderhorn is a larger neighborhood that contains many unique districts. Each of these offers something unique — and Powderhorn Park is nestled within these many communities. The vibe can change quickly from one block to the next, but there is an eclectic appeal throughout.

Powderhorn Park has its own, decidedly underrated lake, which offers great views and a small beach. Another perk of living in this particular neighborhood? Easy access to Midtown Global Market, which serves as the area's cultural hub. This international oasis boasts a variety of stalls that offer an appealing taste of the wide world beyond Minneapolis.

There are plenty of small, modest apartment buildings in Powderhorn Park. These tend to be situated near single-family or multi-family homes, making it easy for many types of residents to feel connected to the community.

Ericsson

Quiet and unassuming, Ericsson offers the perfect middle ground for anyone who craves urban conveniences but prefers a more laid-back lifestyle. Although I've never lived in this neighborhood, I've spent a lot of time here because I adore Lake Hiawatha and the trails that run along Minnehaha Creek.

This is the perfect place to embrace those amazing Minnesota summers — ideally on a bike or kayak. I'm not big on golf, but it's worth noting that this neighborhood is home to the Hiawatha Golf Course.

There is more to Ericsson than parks, although living here typically means heading elsewhere for dining and entertainment. That's not a big deal, however, when you enjoy easy access to the light rail.

Quiet streets make this a family-friendly neighborhood, as do Northrop Elementary School and the nearby Saint Helena Catholic School. There are a few contemporary apartments on the edges of this neighborhood, but otherwise, single-family homes dominate.

Sheridan

Northeast is known for its thriving arts scene, but the adjacent Sheridan neighborhood also promises plenty of creative energy. Even longtime Twin Cities residents tend to lump Sheridan in with Northeast, but it's easy to see why: these share the same artsy feel — and both areas are culinary hot spots. Nothing beats the James Beard Award-winning Young Joni —the epitome of a local sensation.

Access to downtown, Northeast, and the North Loop should theoretically attract young professionals, but these aspiring residents may feel somewhat limited by the housing choices. Apartments are mostly clustered near Broadway Street, where it's easy to hit up the area's best bars and restaurants. The eastern portion of the neighborhood mostly features single-family houses.

Other than its modest homes, this neighborhood has a few features that should be appealing to families: the historic (yet kid-friendly) Pierre Bottineau Library and a small playground at Sheridan Memorial Park. This neighborhood is also home to the Las Estrellas Dual Language School.

Howe

Easily one of the most underrated neighborhoods in Minneapolis, Howe has a bit of a St. Paul vibe, as it's quieter and more unassuming than a lot of bustling Minneapolis districts. One underrated feature ties this to a Minneapolis icon, however: in the northwest corner rests the iconic house from the beloved film Purple Rain. While this house is just as humble as its neighbors, hardcore Prince fans will find this detail intriguing.

Hiawatha Avenue makes it easy to get around, and, better yet, Howe runs parallel to the light rail. An evening at the Riverview Theater is always a delight and hiking at Mississippi Gorge Regional Park is even better.

There is plenty for families in this area, including Dowling Elementary School, Sanford Middle School, and the cute playground at Longfellow Park. Families often reside in the neighborhood's small, yet charming houses. Apartments are mostly clustered near Hiawatha and the light rail.

Regina

I've spent a lot of time at Nokomis, and yet, for years, I knew little about the Regina neighborhood. This area rarely receives the attention it deserves, perhaps because it has two small ponds instead of its own large lake. That being said, beautiful lakes are always well within reach — a short bike ride will take you to Hiawatha or Nokomis, and, while crossing 35W can be a pain, Lake Harriet is also nearby.

Regina is incredibly small and incredibly understated, with most residents living in modest single-family homes. Apartments are limited, but there are a few townhomes in the area. This is the Minneapolis version of a bedroom community; there's not a whole lot to do directly in Regina, but for the most part, residents are okay with that — it's incredibly easy to hop on 35W and visit busier (and therefore, louder) areas.

Northrop

As a child, I associated the name Northrop with the U of M — specifically, Northrop Auditorium. The auditorium's namesake was the influential Cyrus Northrop, who served for nearly two decades as university president. His name also adorns a Minneapolis neighborhood, but this is not particularly close to the university. Rather, it borders Ericsson and provides easy access to some of the city's finest lakes.

Parents of toddlers inevitably find themselves at local coffee shop Sovereign Grounds, where kids can play with toys while their parents relax with hot drinks and pastries. There are plenty of other appealing bakeries and restaurants along Chicago Avenue.

Families also appreciate Northrop because it's home to the Hennepin public charter schools. There are also wide-open spaces for running around at McRae Park.

The Northrop rental market mostly features single-family houses, although there are a few apartments worth checking out. These are mostly nestled along Cedar Avenue — perfect for anyone who wants to hang out at Hiawatha or Nokomis.