Real Estate Investing in Watertown, Minnesota

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

1 ZIP codes • Population: 5,974 • Carver County

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

🏠 For Homebuyers
MIXED
Grade C (64/100)

Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.

📈 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
CLEAN

No major risk flags on the data we track.

What’s happening in Watertown, MN?

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3.0/ 5

Investability

Citywide average

2.0/ 5

Appreciation

2.7% 5yr CAGR

3.0/ 5

Landlord Climate

Regulatory friendliness

🏦 30-yr Fixed Rate: 6.76% as of Sep 10 Source: Freddie Mac PMMS
Avg Investability
Avg Home Value $388,700
Avg Monthly Rent $1,368
ZIP Codes 1

Investing in Watertown Real Estate

Watertown (Minnesota) spans 1 ZIPs and roughly a sizable population. plainly the fundamentals here skew distressed, with soft rents, soft appreciation, and structural headwinds worth respecting.

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

decisively Watertown'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.

Watertown's population trends and income levels suggest a market where affordability is strained, which constrains how aggressively rents can rise without hurting collections.

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 Minneapolis-St. Paul-Bloomington, MN-WI

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

Cash Flow → Appreciation → Affordable →

Landlord Ground Truth

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Avg Home Value
$388,700
Avg Monthly Rent
$1,368
1% Rule
✗ Below
Landlord Friendly (MN)

ZIP Codes in Watertown, MN

Screen every ZIP in Watertown

Filter Watertown’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 Watertown, MN

What real estate strategy is ideal for Watertown, MN?

Watertown, MN investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($389K prices, $1,368/mo rents) make it a reasonable choice.

What is the rental occupancy rate in Watertown, MN?

Occupancy in Watertown, MN runs even-keeled with elevated vacancy. Well-priced units at $1,368/mo lease on reasonable timelines.

What is the average home sale price in Watertown, MN?

Typical homes in Watertown, MN go for around $389K. The 5-year CAGR of 0.0% predictable price movement.

What is it like being a landlord in Watertown, MN?

MN law balanced for landlords, and Watertown inherits those rules. Investors should still review local ordinances for rental licensing.

How much rent can I charge in Watertown, MN?

Rents in Watertown, MN run near $1,368/mo. Compared with median home prices of $389K that produces solid gross yields for typical rentals.

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