Cost to Furnace Replacement in Minneapolis, MN (2026)
If you’re budgeting a furnace replacement in Minneapolis, most projects run $2,697-$8,090, 8% above the $4,500 national average. What moves that number most is usually one thing: Furnace Efficiency (AFUE Rating). On its own it can swing the cost by $800 - $3,000, so that’s the decision to slow down on before you sweat the smaller stuff.
Easiest place to save: Get quotes in spring or early fall when HVAC companies are less busy - many offer 10-20% off-season discounts
In the Midwest (where Minneapolis sits): Competitive HVAC market keeps prices down despite high heating demand. Gas is readily available.
$2,697-$8,090 in Minneapolis
8% above the national average · 1.08x cost multiplier
In Minneapolis, a furnace replacement runs $2,697 to $8,090 on average - about 8% above what homeowners pay nationwide. The Midwest market's labor costs account for most of the gap, with material pricing and local permitting fees adding to the spread. Use the cost table below to compare budget, mid-range, and premium options side by side.
Cost Breakdown in Minneapolis
| Line Item | Low | Mid | High |
|---|---|---|---|
| Cost per sq ft of home | $2 | $3 | $5 |
| Materials | $1,435 | $2,255 | $4,100 |
| Labor | $1,413 | $2,002 | $2,708 |
| Permits | $205 | $308 | $410 |
| Total | $3,053+9% vs. national avg | $4,873+8% vs. national avg | $8,038+7% vs. national avg |
Budget
80% AFUE single-stage gas furnace, basic brand (Goodman or Amana), direct replacement with existing ductwork and venting
Mid-Range
90-95% AFUE two-stage gas furnace, mid-tier brand (Rheem, Trane, or Carrier), standard installation with smart thermostat
Premium
97-98% AFUE modulating variable-speed gas furnace, premium brand (Lennox or American Standard), with zoning controls and whole-house humidifier
Material Options
Material prices below are national averages; availability in Minneapolis may shift costs slightly.
| Material | Cost/Unit | Best For |
|---|---|---|
| Single-Stage Gas Furnace (80% AFUE) | $2,000 - $3,500 installed | Mild climates, budget-focused homeowners, homes with high ceilings or poor insulation where efficiency gains are minimalLowest upfront cost, simple and reliable, fewer parts to fail |
| Two-Stage Gas Furnace (90-96% AFUE) | $3,500 - $5,500 installed | Most homeowners in cold climates, the sweet spot of cost vs. performanceGood balance of cost and efficiency, quieter on low stage, more even temperatures |
| Modulating Gas Furnace (97-98% AFUE) | $5,500 - $8,500 installed | Cold climates with high heating bills, homeowners planning to stay 10+ yearsLowest operating costs, whisper-quiet, ultra-even heating, best humidity control |
| Oil Furnace (83-87% AFUE) | $3,000 - $6,000 installed | Rural areas without natural gas service, Northeast homes with existing oil infrastructureProduces very hot air, works in areas without natural gas |
| Electric Furnace | $1,500 - $3,500 installed | Mild climates with low heating needs, areas with very cheap electricity, supplemental heatingLowest upfront cost, no combustion or venting, 100% efficient at point of use |
Other Projects in Minneapolis
Minneapolis Estimate
Typical Range
$2,697-$8,090
vs. National Average
8% above national
Cost Multiplier
1.08x
Cost Per sq ft of home
$2-$5
This 1.08x estimate prices Minneapolis labor from BLS Occupational Employment and Wage Statistics (May 2025) and applies a lighter regional adjustment to materials and permits, which vary less by metro than labor does. Actual bids vary by contractor, project scope, and timing.
See national average costs →