Real Estate Investing in Farmington, Minnesota (55024)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55024 (Farmington, MN)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
No major risk flags on the data we track.
What’s happening in Farmington, MN (55024)?
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Market Analysis: 55024 Farmington
Turning to rents, ZIP 55024 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $405K median. It rewards specialists, not generalists.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $405K asset, 55024 is the wrong submarket. If the plan prices in friction, the yield can still work.
Regionally, 55024 sits on the difficult end of the MN spectrum. The a strong candidate for read — for disciplined operators — is that pricing reflects the difficulty.
A substantial renter share of 12% in 55024 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
The 55024 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Farmington:
Property Strategy for 55024
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $261,787 | $1,700 | 4.7% | +3.9% | $130,894 |
| 3BR | $358,710 | $2,250 | 4.5% | +4.5% | $119,570 |
| 4BR | $444,148 | $2,520 | 4.1% | +4.9% | $111,037 |
| 5BR | $506,066 | — | — | +5.1% | $101,213 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55024 Compare?
| Metric | 55024 | Farmington | Minnesota |
|---|---|---|---|
| Home Value | $404,955 | $404,955 | $340,597 |
| 5-Year CAGR | 2.5% | 2.5% | 4.9% |
| Avg Rent | $1,986 | $1,986 | - |
| Cap Rate | 3.8% | 3.8% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 55024 (Farmington, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $404,955 |
| Monthly Rent | $1,986 |
| Price-to-Rent | 17.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.9% |
| Cap Rate | 3.8% |
| 5-Year IRR | 6.3% |
📈 Home Appreciation
| 1-Year | +3.1% ▲ |
| 3-Year CAGR | +1.8% ▲ |
| 5-Year CAGR | +2.5% ▲ |
| 10-Year CAGR | +4.8% ▲ |
🏠 Rent Trends
| 1-Year | -10.3% ▼ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.8%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 55024
Population: 36,681
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 55024
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 2,262 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What investment strategy works best in Farmington, MN?
Investors usually favor careful cash-flow rentals with hands-on management in Farmington, MN. With home values at $405K and rents near $1,986/mo, other strategies can work but produce consistent rather than outsized returns.
Is Farmington in MN worth investing in?
Farmington, MN rates 3.0/5 for investability. With median values at $405K and rents near $1,986/mo, the market offers reasonable fundamentals for rental investors.
How qualified is the tenant pool in Farmington, MN?
Farmington, MN draws a consistent base of working renters. Demand at the $1,986/mo rent level is reasonable for standard single-family and small multi rentals.
Does house hacking make sense in Farmington, MN?
The a challenging house-hack environment in Farmington, MN reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
Does Farmington, MN favor landlords or tenants?
For rental operators, Farmington, MN rates as balanced. The regulatory environment standard buy-and-hold operations.
You know 55024 now. You don’t know where it ranks.
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How 55024 ranks in Minneapolis-St. Paul-Bloomington, MN-WI
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