Real Estate Investing in Eagan, Minnesota (55123)
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Should you buy in 55123 (Eagan, 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 Eagan, MN (55123)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 55123 Eagan
ZIP 55123 in Eagan, MN carries a impressive set of headwinds. Home values near $479K and rents of $1,734/mo sit inside a market where underwriting has to be tight.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 55123 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Nearby ZIPs in Eagan have seen price recovery that 55123 has not matched. Dakota County data supports the view that the spread is structural rather than temporary.
The 55123 ZIP's population of 27,288 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that reports the need for careful underwriting.
leans the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Eagan:
Property Strategy for 55123
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $170,646 | $1,560 | 6.6% | +4.2% | $170,646 |
| 2BR | $230,122 | $1,900 | 5.9% | +4.1% | $115,061 |
| 3BR | $411,731 | $2,510 | 4.4% | +4.0% | $137,244 |
| 4BR | $493,595 | $2,810 | 4.1% | +4.6% | $123,399 |
| 5BR | $630,268 | — | — | +4.6% | $126,054 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55123 Compare?
| Metric | 55123 | Eagan | Minnesota |
|---|---|---|---|
| Home Value | $479,411 | $395,259 | $340,597 |
| 5-Year CAGR | 2.6% | 2.6% | 4.9% |
| Avg Rent | $1,734 | $1,652 | - |
| Cap Rate | 2.8% | 3.3% | - |
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 55123 (Eagan, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $479,411 |
| Monthly Rent | $1,734 |
| Price-to-Rent | 23.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.3% |
| Cap Rate | 2.8% |
| 5-Year IRR | 5.4% |
📈 Home Appreciation
| 1-Year | +3.8% ▲ |
| 3-Year CAGR | +1.9% ▲ |
| 5-Year CAGR | +2.6% ▲ |
| 10-Year CAGR | +4.4% ▲ |
🏠 Rent Trends
| 1-Year | +0.8% ▲ |
| 3-Year CAGR | +1.9% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.8%). 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 55123
Population: 27,288
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 55123
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
RAHN ELEMENTARY
DEERWOOD ELEMENTARY
OAK RIDGE LEADERSHIPENVIRON/HEALTH
THOMAS LAKE ELEMENTARY
BLACK HAWK MIDDLE
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 are vacancy rates like in Eagan, MN?
Vacancy in Eagan, MN is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $1,734/mo.
Is MN a landlord-friendly state?
The landlord environment in Eagan, MN is balanced. Statewide rules shape most day-to-day operations for rental owners.
What is the smart move for investors in Eagan, MN?
Most investors in Eagan, MN run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
Are renters plentiful in Eagan, MN?
Working renters make up the core of the Eagan, MN tenant base. The pool is reasonable for investors targeting long-term holds.
What kind of market is Eagan, MN for investors?
Our data puts Eagan, MN at 3.0/5 for investability. Home prices of $479K and rents around $1,734/mo create a solid backdrop for investor activity.
You know 55123 now. You don’t know where it ranks.
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How 55123 ranks in Minneapolis-St. Paul-Bloomington, MN-WI
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