Real Estate Investing in Waconia, Minnesota (55387)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55387 (Waconia, 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 Waconia, MN (55387)?
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Market Analysis: 55387 Waconia
The 55387 ZIP in Waconia, MN is a local-operator market. Outside capital chasing a $470K entry has to pair deep knowledge with the discount.
Distressed markets are won on execution, not on spreadsheets. ZIP 55387 comes in at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Statewide comparisons place 55387 among MN's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
The 55387 ZIP's population of 14,697 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that registers the need for careful underwriting.
tilts toward 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 Waconia:
Property Strategy for 55387
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $282,767 | $1,630 | 4.2% | +3.9% | $141,384 |
| 3BR | $404,403 | $2,160 | 3.8% | +4.0% | $134,801 |
| 4BR | $483,376 | $2,410 | 3.6% | +4.7% | $120,844 |
| 5BR | $555,653 | — | — | +4.4% | $111,131 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55387 Compare?
| Metric | 55387 | Waconia | Minnesota |
|---|---|---|---|
| Home Value | $469,522 | $469,522 | $340,597 |
| 5-Year CAGR | 2.9% | 2.9% | 4.9% |
| Avg Rent | $1,895 | $1,895 | - |
| Cap Rate | 3.2% | 3.2% | - |
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 55387 (Waconia, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $469,522 |
| Monthly Rent | $1,895 |
| Price-to-Rent | 20.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.8% |
| Cap Rate | 3.2% |
| 5-Year IRR | 6.0% |
📈 Home Appreciation
| 1-Year | +4.4% ▲ |
| 3-Year CAGR | +1.4% ▲ |
| 5-Year CAGR | +2.9% ▲ |
| 10-Year CAGR | +4.8% ▲ |
🏠 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 (3.2%). 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 55387
Population: 14,697
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 55387
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
Frequently Asked Questions
How much rent can I charge in Waconia, MN?
Rental rates in Waconia, MN average $1,895/mo. Tenant demand and $470K home values make the yield look reasonable by investor standards.
What is the typical home price in Waconia, MN?
Median home price in Waconia, MN is near $470K, with a 5-year CAGR of 0.0%. Prices have been predictable and supportive of buy-and-hold strategies.
What real estate strategy is ideal for Waconia, MN?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Waconia, MN. The numbers - $470K homes against $1,895/mo rents - support that play.
What is the typical vacancy rate in Waconia, MN?
Expect elevated vacancy in Waconia, MN. Rents at $1,895/mo are absorbed by the tenant base without meaningful lag.
What kind of tenants rent in Waconia, MN?
Tenant demand in Waconia, MN is solid. The local workforce $1,895/mo rents across most rental classes.
You know 55387 now. You don’t know where it ranks.
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How 55387 ranks in Minneapolis-St. Paul-Bloomington, MN-WI
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