Real Estate Investing in Dayton, Minnesota (55327)
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Should you buy in 55327 (Dayton, 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.
- High price-to-rent: Price-to-rent ratio 29.6 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Dayton, MN (55327)?
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Market Analysis: 55327 Dayton
Investors eyeing 55327 need to respect the fundamentals at play. Home values of $506K come alongside slower price movement and elevated management overhead.
Meanwhile, the numbers look inviting — $506K purchase price, 0.0% nominal cap — the work to hit that pro forma in 55327 is substantial and deserves full respect.
In practical terms, 55327 offers a low basis, the region around Dayton has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
The 55327 ZIP's population of 5,542 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that stands at the need for careful underwriting.
Strategy in 55327 is an operator game, not a passive one. Turning to rents, entry prices of $506K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Dayton:
Property Strategy for 55327
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $427,532 | $1,580 | 2.7% | — | $213,766 |
| 3BR | $452,807 | $2,090 | 3.3% | +4.7% | $150,936 |
| 4BR | $525,368 | $2,340 | 3.2% | +4.8% | $131,342 |
| 5BR | $616,097 | — | — | — | $123,219 |
Market Trends
Home Value History (with trend line)
📊 How Does 55327 Compare?
| Metric | 55327 | Dayton | Minnesota |
|---|---|---|---|
| Home Value | $505,559 | $505,559 | $340,597 |
| 5-Year CAGR | 2.3% | 2.3% | 4.9% |
| Avg Rent | $1,422 | $1,422 | - |
| Cap Rate | 2.2% | 2.2% | - |
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 55327 (Dayton, MN). Anonymous, moderated, never written by AI.
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Property managers serving Hennepin County
Manage rentals here? List your business →JJS Property Management of Central Minnesota offers a wide choice of apartments in various areas including Avon, Buffalo, Milaca, Monticello, Royalton, Sartell, Sauk Rapids, St. Cloud, and St. Joseph. summary from their website
MGM Property Management, LLC provides property management services for rental properties, homeowner associations, and commercial tenants in the Twin Cities, Rochester, and St. Cloud areas. summary from their website
Simply Residential Property Management offers expert management of single-family, condominiums, and multi-family dwellings throughout the Twin Cities. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $505,559 |
| Monthly Rent | $1,422 |
| Price-to-Rent | 29.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.4% |
| Cap Rate | 2.2% |
| 5-Year IRR | 4.5% |
📈 Home Appreciation
| 1-Year | +3.4% ▲ |
| 3-Year CAGR | +1.7% ▲ |
| 5-Year CAGR | +2.3% ▲ |
| 10-Year CAGR | +5.0% ▲ |
🏠 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 (2.2%). 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 55327
Population: 5,542
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 55327
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 6,491 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How much does a house cost in Dayton, MN?
Median home price in Dayton, MN is near $506K, with a 5-year CAGR of 0.0%. Prices have been steady and supportive of buy-and-hold strategies.
Is Dayton in MN worth investing in?
Dayton, MN rates 3.0/5 for investability. With median values at $506K and rents near $1,422/mo, the market offers reasonable fundamentals for rental investors.
How do landlord-tenant laws work in Dayton, MN?
The landlord environment in Dayton, MN is balanced. Statewide rules shape most day-to-day operations for rental owners.
Can I live-in-and-rent in Dayton, MN?
Dayton, MN offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,422/mo rent level.
What is the renter demographic in Dayton, MN?
The renter base in Dayton, MN is reasonable for the $1,422/mo price point. Screening well and pricing to market typically yields even-keeled tenants.
You know 55327 now. You don’t know where it ranks.
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How 55327 ranks in Minneapolis-St. Paul-Bloomington, MN-WI
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