Published August 15, 2026
A basement bedroom is the cheapest legal bedroom most Twin Cities homeowners can add. It is also the one most often done wrong.
The requirements
| Item | Requirement |
|---|---|
| Egress opening | 5.7 sq ft net clear (5.0 at grade), 24 in min height, 20 in min width, sill ≤ 44 in above floor, opens without a key or tool |
| Window well | Min 36 in projection, 9 sq ft area; permanent ladder or steps if deeper than 44 in |
| Ceiling height | 7 ft over the required floor area |
| Floor area | 70 sq ft min, no dimension under 7 ft |
| Heat | Permanent source holding 68°F |
| Alarms | Interconnected smoke alarm in the room, CO alarm within 10 ft |
| Insulation | Basement wall assembly per Minnesota energy code, with a continuous rigid or spray foam layer against the foundation |
| Egress path | Route out that does not pass through a mechanical room |
Moisture comes before framing
This is the part people skip. If the basement takes water — even occasionally — fix that first:
- Extend downspouts 6+ feet from the foundation
- Regrade so soil falls away from the house
- Clean and repair gutters
- Repair or add drain tile and a sump if the water table demands it
Framing and insulating over an active moisture problem builds a mold farm inside a wall you just paid for. We will not do it, and no honest contractor should.
The insulation detail that matters in Minnesota
A concrete foundation wall is cold and it moves vapor. The assembly that works here is a continuous layer of rigid foam or closed-cell spray foam directly against the concrete, then a framed wall inboard of it, with no polyethylene vapor barrier trapping moisture between two impermeable layers. Get this wrong and the wall sweats.
Cost and timeline
| Scope | Range | Timeline |
|---|---|---|
| Bedroom only, egress already in place | $9,000 – $18,000 | 3 – 4 weeks |
| Bedroom plus new egress window | $14,000 – $28,000 | 4 – 6 weeks |
| Bedroom plus 3/4 bath | $28,000 – $50,000 | 6 – 10 weeks |
The return
Below-grade space is appraised differently than above-grade, so do not expect a basement bedroom to add the same value as a main-floor one. What it reliably does is add rentable space. A permitted basement bedroom in Minneapolis or St. Paul commonly rents in the several-hundred-a-month range on its own, which puts payback on a $20,000 project inside three years — and it is a room you can point to on the listing when you sell.
Get it inspected
Every item above is verifiable by a city inspector in one visit. That inspection is what turns a finished room into a bedroom that counts. We pull permits on every basement bedroom we build.
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