Real Estate Investing in Vermillion, Minnesota (55085)
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Should you buy in 55085 (Vermillion, MN)? Our answer, based on the numbers below.
Solid choice — stable market with a reasonable entry point and good rental backup if you ever need to move.
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.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Vermillion, MN (55085)?
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Market Analysis: 55085 Vermillion
The 55085 ZIP covers a section of Vermillion that demands careful diligence. Prices near $349K look accessible, but the work to make a deal cash flow is real.
The 55085 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Put differently, 55085 offers a low basis, the region around Vermillion has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Resident income in 55085 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Strategy in 55085 is an operator game, not a passive one. Meanwhile, entry prices of $349K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Vermillion:
Market Trends
Home Value History (with trend line)
📊 How Does 55085 Compare?
| Metric | 55085 | Vermillion | Minnesota |
|---|---|---|---|
| Home Value | $349,488 | $349,488 | $340,597 |
| 5-Year CAGR | 4.1% | 4.1% | 4.9% |
| Avg Rent | $1,368 | $1,368 | - |
| Cap Rate | 3.1% | 3.1% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 55085 (Vermillion, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $349,488 |
| Monthly Rent | $1,368 |
| Price-to-Rent | 21.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.7% |
| Cap Rate | 3.1% |
| 5-Year IRR | 7.1% |
📈 Home Appreciation
| 1-Year | +6.6% ▲ |
| 3-Year CAGR | +3.9% ▲ |
| 5-Year CAGR | +4.1% ▲ |
| 10-Year CAGR | N/A |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.1%). 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 55085
Population: 409
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
🎓 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
How should investors approach Vermillion, MN?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Vermillion, MN. The numbers - $349K homes against $1,368/mo rents - support that play.
What is the renter demographic in Vermillion, MN?
Expect a solid tenant pool in Vermillion, MN. The rental market absorbs $1,368/mo rents without meaningful friction.
How do landlord-tenant laws work in Vermillion, MN?
Rental owners in Vermillion, MN deal with a balanced legal framework. Most standard eviction processes run on reasonable timelines.
Should investors consider Vermillion, MN?
Our data puts Vermillion, MN at 3.0/5 for investability. Home prices of $349K and rents around $1,368/mo create a solid backdrop for investor activity.
How viable is house hacking in Vermillion, MN?
House hacking in Vermillion, MN is reasonable to execute. Prices around $349K and rents of $1,368/mo solid owner-occupant economics.
You know 55085 now. You don’t know where it ranks.
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How 55085 ranks in Minneapolis-St. Paul-Bloomington, MN-WI
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