Real Estate Investing in Stewart, Minnesota (55385)
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Should you buy in 55385 (Stewart, 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.
- Elevated vacancy: 11.6% vacancy may signal weakening demand.
- High price-to-rent: Price-to-rent ratio 27.1 — 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 Stewart, MN (55385)?
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Market Analysis: 55385 Stewart
This part of McLeod County is not an easy win. The 55385 ZIP comes in at softness in key indicators, and the playbook that works in cleaner markets often stalls here.
The investment case in 55385 is solid only for operators who understand what they are buying. A $284K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
ZIP 55385's metrics run below McLeod County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Demographically, 55385 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
The 55385 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 Stewart:
Market Trends
Home Value History (with trend line)
📊 How Does 55385 Compare?
| Metric | 55385 | Stewart | Hutchinson, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $284,322 | $284,322 | N/A | $340,597 |
| 5-Year CAGR | 6.3% | 6.3% | N/A | 4.9% |
| Avg Rent | $873 | $873 | N/A | - |
| Cap Rate | 2.4% | 2.4% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 55385 (Stewart, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $284,322 |
| Monthly Rent | $873 |
| Price-to-Rent | 27.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.7% |
| Cap Rate | 2.4% |
| 5-Year IRR | 8.7% |
📈 Home Appreciation
| 1-Year | +8.6% ▲ |
| 3-Year CAGR | +5.5% ▲ |
| 5-Year CAGR | +6.3% ▲ |
| 10-Year CAGR | +7.4% ▲ |
🏠 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 (2.4%). 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 55385
Population: 1,285
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
Frequently Asked Questions
What is the typical vacancy rate in Stewart, MN?
Expect elevated vacancy in Stewart, MN. Rents at $873/mo are absorbed by the tenant base without meaningful lag.
Does Stewart, MN make sense for an investment property?
Yes - Stewart, MN a 3.0/5 investability score. With $284K home prices against $873/mo monthly rent, the market delivers a reasonable entry point for new investors.
Where do home prices stand in Stewart, MN?
Typical homes in Stewart, MN go for around $284K. The 5-year CAGR of 0.0% even-keeled price movement.
Does house hacking work in Stewart, MN?
The a challenging house-hack environment in Stewart, MN reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
How qualified is the tenant pool in Stewart, MN?
Working renters make up the core of the Stewart, MN tenant base. The pool is reasonable for investors targeting long-term holds.
You know 55385 now. You don’t know where it ranks.
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How 55385 ranks in Hutchinson, MN
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