Minneapolis, MN Zoning Overlays & Bonuses: Density Bonus Law (2026)
Key Facts
- Minimum project size
- 20 dwelling units
- Bonus doubles below
- 30% AMI, no averaging
- Reviewed by
- zoning administrator, admin review
- Appeal path
- City Planning Commission
- Governing law
- Zoning Code Chapter 540
Summary
Minneapolis grants a floor area ratio premium to multifamily projects of 20+ units that build affordable housing on-site, with the bonus doubling for units affordable at or below 30% of area median income.
Affordable housing: a. The development shall comply with the city's inclusionary housing requirements by providing affordable units on-site rather than utilizing one (1) of the compliance alternatives. b. The development must include at least twenty (20) dwelling units to qualify for the affordable housing bonus. ... c. The premium value shall be double when the affordable units are on-site and affordable at or below thirty (30) percent of the area median income, without income averaging.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 72).
Full Breakdown
Under Chapter 540 of the zoning code, the city allows developments to exceed their built form overlay district's base floor area ratio by earning premiums, including an affordable-housing premium. A project must include at least 20 dwelling units and provide on-site affordable units meeting the city's inclusionary housing requirements rather than paying a fee alternative. The premium value is set per district (Table 540-5) and doubles when the affordable units are priced at or below 30% of area median income without income averaging. The zoning administrator reviews and decides applications administratively, appealable to the city planning commission.
Violations & Fines
Premiums must be maintained for the life of the principal structure, except the affordable housing premium's compliance period follows the Unified Housing Policy; noncompliance risks loss of the bonus and code enforcement action by the zoning administrator.
Frequently Asked Questions
How much extra floor area can a Minneapolis project get for adding affordable units?
Does a small duplex or triplex qualify for the density bonus?
Sources & Official References
Other rules in Minneapolis
Compare Minneapolis to another location·View the Minnesota zoning overlays & bonuses overview
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