Real Estate Investing in Underwood, Minnesota

Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.

1 ZIP codes • Population: 1,798 • Otter Tail County

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Should you buy in Underwood, MN? Our answer, based on the numbers below.

🏠 For Homebuyers
CAUTION
Grade D (48/100)

Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.

📈 For Investors
MIXED
3.0 / 5 (47/100)

A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.

⚠️ Risks to Know
1 flag
  • High vacancy: 38.4% of homes vacant — above national norms.

What’s happening in Underwood, MN?

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3.0/ 5

Investability

Citywide average

3.0/ 5

Appreciation

6.2% 5yr CAGR

3.0/ 5

Landlord Climate

Regulatory friendliness

🏦 30-yr Fixed Rate: 6.95% as of Sep 17 Source: Freddie Mac PMMS
Avg Investability
Avg Home Value $349,991
Avg Monthly Rent $1,035
ZIP Codes 1

Investing in Underwood Real Estate

Across Underwood's 1 ZIPs, the picture is thin: $350K median values, $1,035/mo rents, and a population that has faced real economic pressure.

Across Underwood's 1 ZIPs, fundamentals run tepid: thin appreciation, soft rents, and demographic trends that don't obviously reverse in the medium term.

decisively Underwood's sale market has not rewarded patience. a challenging fit for listings sit longer, price cuts are common, and rent growth has been flat to negative in multiple ZIPs.

Population dynamics in Underwood haven't been supportive. less favorable for combined with sluggish income growth, the demographic backdrop complicates any purely financial underwriting.

A great house in the wrong ZIP is still a bad deal — screen every market by cash flow & cap rate.
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Best ZIP codes in Fergus Falls, MN

Underwood is part of this metro. Every ZIP in it, ranked. Free.

Cash Flow → Appreciation → Affordable →

Landlord Ground Truth

Real numbers from people who own or manage rentals in Underwood, MN. Anonymous, moderated, never written by AI.

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Avg Home Value
$349,991
Avg Monthly Rent
$1,035
1% Rule
✗ Below
Landlord Friendly (MN)

📉 Market Crash Risk Index

Based on Fergus Falls, MN metro

1/10
Low Risk
Price YoY
0/3
N/A
Rent YoY
0/2
N/A
Below List
1/3
59%
Days Pending
0/2
0 days

View all metro crash risk rankings →

☀️ Warm Market — Fergus Falls, MN metro
0
Days to pending
7.2%
Listings with price cuts
0.0%
Sale-to-list ratio
📅 Data as of August 29, 2026 — updated weekly

ZIP Codes in Underwood, MN

Screen every ZIP in Underwood

Filter Underwood’s ZIPs by cap rate, vacancy, appreciation and 30+ more criteria, and export your shortlist to CSV — with the Investor plan ($19/mo).

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Frequently Asked Questions About Underwood, MN

How does Underwood, MN stack up for property investment?

Yes - Underwood, MN a 3.0/5 investability score. With $350K home prices against $1,035/mo monthly rent, the market delivers a reasonable entry point for new investors.

What real estate strategy is ideal for Underwood, MN?

Underwood, MN investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($350K prices, $1,035/mo rents) make it a reasonable choice.

Are rents high in Underwood, MN?

Underwood, MN rentals go for roughly $1,035/mo a month. That puts gross yield in solid territory relative to $350K acquisition costs.

How strict are landlord regulations in Underwood, MN?

Underwood, MN operates under MN law, which is balanced overall for landlords. Expect steady treatment in typical lease and eviction cases.

What is the rental occupancy rate in Underwood, MN?

Underwood, MN vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.

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