The development of neuromorphic hardware and modeling of biological neural networks requires algorithms with local learning rules. Artificial neural networks using local learning rules to perform principal subspace analysis (PSA) and clustering have recently been derived from principled objective functions. However, no biologically plausible networks exist for minor subspace analysis (MSA), a fundamental signal processing task. MSA extracts the lowest-variance subspace of the input signal covariance matrix. Here, we introduce a novel similarity matching objective for extracting the minor subspace, Minor Subspace Similarity Matching (MSSM). Moreover, we derive an adaptive MSSM algorithm that naturally maps onto a novel neural network with local learning rules and gives numerical results showing that our method converges at a competitive rate.