Caleb Banks, the No. 18 overall pick in the 2026 NFL Draft, enters the league with a ~$21.28 million rookie contract and a ~$12.1 million signing bonus.

Before the Florida defensive tackle plays a single snap for the Minnesota Vikings, he’s already facing one of the most important financial decisions in the entire first round, and for his future:

Should the young man keep his Florida residency, or let Minnesota’s 9.85% income tax eat into his signing bonus?

Because for a 22 year old interior lineman with long‑term earning potential, the wrong address doesn’t just cost money.

It could cost millions.

APSM breaks down Banks’ real estate and residency options to suggest where he could establish his primary residence to maximize his net worth across his new NFL financial landscape:

His home state (Michigan)
His college state (Florida)
His drafted state (Minnesota)

📩 Subscribe to APSM

Get APSM’s free weekly breakdowns on contracts,
taxes, real estate, and athlete wealth.

Join hundreds of readers learning financial literacy
through sports, every week.

Don’t borrow against your future
to pay for your pride.
Subscribe to the APSM Wealth Letter.

Does Caleb Banks Own Any Property?

Banks was born and raised in Southfield, Michigan, before transferring to Florida and becoming one of the SEC‘s most disruptive defensive interiors.

There are no public records of Banks owning real estate in Michigan, Florida, or anywhere else.

Like most NIL‑era athletes, he likely:

Rented during his college days
Saved NIL earnings and sponsorship income
Waited until the draft to make his first major real estate move

Now, with a $12.1 million signing bonus on the way, Banks’ first real estate decision is a financial fork in the road. Minnesota, with 9.85% income tax, is absolutely not where he should anchor his residency.

Market #1: Michigan (Home State)

Median Home Price: ~$260,000
Property Tax Rate: ~1.4%
State Income Tax: 4.25%
Cost of Living: ~5-10% below U.S. average
Market Trend: 4-6% annual appreciation (Detroit suburbs, Grand Rapids)

Pros

Affordable housing
Strong appreciation in Detroit suburbs
Familiar environment

Cons

4.25% income tax
Higher property taxes than Florida
Not ideal for a high‑income athlete

Michigan is fine as a place to own property, but not ideal as Banks’ tax home when Florida offers 0% income tax and also does not levy a capital gains tax on assets or investments.

Many athletes who go broke did not understand the importance of gross vs net earnings and how residency is a major factor in the equation. Where you live on paper does have to match reality to a degree, but if you have the choice to save 3-5% or more in pocketed money, why not take it.

Real estate markets also vary throughout not just different states, but between cities and even neighborhoods.

For an athlete from Iowa, moving to New York or Massachusetts might be a dream for them, or it might be the worst experience of their life. Depending on their financial mind, they would understand that playing in a major market can mean more money kept if you establish a primary residence in a low-no-income tax state.

When making a purchase, you should think of the appreciation capability and whether it is an asset or a liability.

Buying a family farm in Iowa for $2 million versus paying that same amount in state tax by just changing your mailing address, is a prime example of how you can use your environment to your advantage (or disadvantage).

Market #2: Florida (College State)

Median Home Price: ~$410,000
Property Tax Rate: ~0.83%
State Income Tax: 0%
Cost of Living: ~10-15% above U.S. average
Market Trend: 5-8% annual appreciation (Miami, Tampa, Orlando)

Pros

0% state income tax
No tax on signing bonus
Strong luxury real estate markets
High appreciation in coastal metros
Homestead Exemption protects assets
Best long‑term wealth environment

Cons

High insurance costs
Volatile luxury markets

Florida is the best financial home for Banks. If he keeps/establishes Florida residency, he protects every dollar of his signing bonus from
state income tax and can use that to accrue wealth, rather than lose it.

Market #3: Minnesota (Drafted State)

Minnesota is one of the most heavily taxed states in pro-sports, and they do not have the same luxury real estate markets to match, such as the markets and appreciation values seen in Las Vegas, Los Angeles, Manhattan, Boston, and other coastal states that levy high income tax rates.

For an athlete playing in the state, if they are tied to there by family or otherwise, they should consider not establishing residency in MN during their time playing for teams in the state.

Sports are not forever, but your money can become generational.

Median Home Price: ~$360,000
Property Tax Rate: ~1.1%
State Income Tax: 9.85%
Cost of Living: ~5-10% above U.S. average
Market Trend: 3-5% annual appreciation (Twin Cities, Rochester)

Pros

Strong rental demand
Stable long‑term appreciation
Affordable compared to coastal NFL markets

Cons

9.85% income tax, one of the highest in the league
Cold‑weather insurance and maintenance costs
No financial justification for residency

Minnesota is fine to rent, terrible to claim residency. Banks should never establish Minnesota residency if he the choice otherwise.

Best Housing Markets, Rental Markets
& Appreciation Rates

Michigan

Best Housing Markets: Novi, Troy, Royal Oak, Birmingham
Best Rental Markets: Detroit suburbs, Ann Arbor
Appreciation: 4-6% annually

Florida

Best Housing Markets: Miami, Tampa, Orlando, Jacksonville
Best Rental Markets: Tampa, Orlando
Appreciation: 5-8% annually

Minnesota

Best Housing Markets: Edina, Eden Prairie, Woodbury, Plymouth
Best Rental Markets: Minneapolis-St. Paul metro
Appreciation: 3-5% annually

Property Tax & Capital Gains Considerations

Property Tax

Florida	~0.83%
Michigan	~1.4%
Minnesota	~1.1%

Capital Gains

Florida	N/A
Michigan	4.25%
Minnesota	9.85%

Residency Impact on Banks’ Signing Bonus

Gross Signing Bonus: $12,100,000
Federal Tax (37%): $7,623,000

Residency State	State Tax Rate	State Tax on Bonus	Estimated Net Signing Bonus
Florida	0%	$0	~$7.62M
Michigan	4.25%	~$514,000	~$7.11M
Minnesota	9.85%	~$1,191,000	~$6.43M

Florida could potentially save Banks:

~$514K vs Michigan
~$1.19M vs Minnesota

This is a million‑dollar residency decision.

Investment Scenario:
Turning $7.62M Into Real Wealth

Using the Florida residency scenario:

ROI Rate (5 Years)	Projected Value
10% Return	~$12.3M
12% Return	~$13.4M
15% Return	~$15.3M
20% Return	~$19.0M

If Banks invests his entire net signing bonus and lives below his means, he can turn ~$7.6 million into $12-19+ million before touching a single dollar.

This is how you go from “rookie contract” to multi‑generational wealth.
It is also how you avoid becoming a financial statistic.

Want to Understand How
Athletes Actually Lose it All?

The APSM “7 Ways Athletes Go Broke” Report Includes an inside look into the primary reasons more athletes end up broke over 70% of the time within just five years after retirement from their sport/league primarily due to:

Hidden behavioral traps behind collapse.
Spending patterns that drain wealth faster than income can replace it.
High-risk advisors and predatory industries.
Divorce, taxes, lifestyle creep & breakdowns.

These are real athlete case studies you can learn from
to avoid the same fate as an athlete, parent, advisor or fan alike.

Future-proof your own frameworks,
avoid the exact same mistakes.

If you want real financial literacy,
the kind that protects you, not just informs you…

This is the blueprint.

Access the 7 Ways
Athletes Go Broke Report

Jock Tax Considerations

Florida Advantage

0% income tax
No tax on signing bonuses
No capital gains tax
Best long‑term wealth compounding

Minnesota Disadvantage

9.85% income tax
High capital gains tax
Cold‑weather cost of living

APSM Real Estate Verdict

Florida should be his primary residence.
Michigan should be a secondary or rental market.
Minnesota should be a rental market only.

If Caleb Banks wants to maximize his rookie earnings, protect his signing bonus, and build long‑term wealth, the suggested move is simple:

Keep/Establish Florida residency.
Buy smart in Miami, Tampa, or Orlando.
Rent in Minnesota.
Invest aggressively from Day 1 (index funds, mutual funds, etc).

Suggested Real Estate Strategy for Caleb Banks

Primary residence: Florida (Miami, Tampa, Orlando)
Secondary: Michigan rental or family property
Work base: Short‑term rental in Minneapolis-St. Paul
Invest: Majority of signing bonus into index funds + Florida real estate
Goal: Turn ~$7.62M into $12-19M+ by Year 5

Banks has one of the cleanest financial setups in the draft,
if he avoids the Minnesota tax trap.

Next Reads

Credits

Written By: Aidan Anderson
Research & Analysis: Apostle Sports Media LLC
Sources: NFL Draft Data, Sportico, Spotrac, Zillow / Redfin Market Research, ESPN, WSJ, APSM Proprietary Analysis
Featured Image: Public Domain / Instagram / Wiki Commons
Disclaimer: This article contains general financial information for educational purposes and does not constitute professional financial advice.