Hennepin County, MN — Property Tax Underwriting Guide
Minnesota · Annual market review
What this means for multifamily underwriting
Hennepin County (Minneapolis, Bloomington) is the primary Minnesota multifamily market. Minnesota's class rate system for 4a rental property means effective rates depend on the combined local levy rate applied to 1.25% of market value.
Transaction type breakdown
Hennepin County assesses all property annually at estimated market value. Class 4a (residential rental, 3+ units) has a class rate of 1.25% applied to the estimated market value to determine Net Tax Capacity. Sale prices are the primary evidence of market value.
Refinance does not affect estimated market value.
Ownership transfer is market evidence; estimated market value commonly moves toward the sale price at the next annual review.
Tax appeal information
12.0 mill (1.2% effective) is an estimate of the combined effective rate on market value for Class 4a rental in Hennepin County.
Guide review
County guidance last reviewed: June 15, 2026
Tax-rate scope: Tax-rate scope is not established as parcel-specific; confirm the parcel's taxing-authority stack.
Official sources: Hennepin County Assessor
Annual-market model with class-rate system is well established for Minnesota; 1.2% effective rate is a mid-county estimate.
Parclio estimates are underwriting guidance, not legal or tax advice. Always verify millage rates, the seller's assessed value, and appeal deadlines with the county assessor or local counsel before relying on these numbers for a credit decision.
Run a tax reset estimate for Hennepin County
Use Parclio's estimator to model the post-closing tax bill, NOI impact, DSCR change, and underwriting memo language for your next Hennepin County deal.