Real Estate Investing in Bloomington, Minnesota (55438)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55438 (Bloomington, 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 Bloomington, MN (55438)?
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Market Analysis: 55438 Bloomington
ZIP 55438 inside Hennepin County looks affordable on the surface — median value of $412K — but the discount exists for reasons that a careful buyer should understand before committing.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $412K asset, 55438 is the wrong submarket. If the plan prices in friction, the yield can still work.
In the broader MN picture, 55438 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
Employment concentration in 55438 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
Strategy in 55438 is an operator game, not a passive one. From a cash-flow lens, entry prices of $412K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Bloomington:
Property Strategy for 55438
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $159,274 | $1,530 | 6.9% | +3.7% | $159,274 |
| 2BR | $247,560 | $1,860 | 5.4% | +3.6% | $123,780 |
| 3BR | $432,067 | $2,460 | 4.1% | +4.3% | $144,022 |
| 4BR | $548,640 | $2,750 | 3.6% | +4.7% | $137,160 |
| 5BR | $667,293 | — | — | +5.0% | $133,459 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55438 Compare?
| Metric | 55438 | Bloomington | Minnesota |
|---|---|---|---|
| Home Value | $411,716 | $376,576 | $340,597 |
| 5-Year CAGR | 2.7% | 2.9% | 4.9% |
| Avg Rent | $1,719 | $1,655 | - |
| Cap Rate | 3.3% | 3.4% | - |
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 55438 (Bloomington, 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 | $411,716 |
| Monthly Rent | $1,719 |
| Price-to-Rent | 20.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.0% |
| Cap Rate | 3.3% |
| 5-Year IRR | 5.9% |
📈 Home Appreciation
| 1-Year | +6.0% ▲ |
| 3-Year CAGR | +2.3% ▲ |
| 5-Year CAGR | +2.7% ▲ |
| 10-Year CAGR | +4.6% ▲ |
🏠 Rent Trends
| 1-Year | +0.7% ▲ |
| 3-Year CAGR | +2.1% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.3%). 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 55438
Population: 15,847
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 55438
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
NORMANDALE HILLS ELEMENTARY
OLSON ELEMENTARY
OLSON MIDDLE
POPLAR BRIDGE ELEMENTARY
Bloomington ECSE
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 3,001 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What kind of vacancy should I budget for in Bloomington, MN?
Expect elevated vacancy in Bloomington, MN. Rents at $1,719/mo are absorbed by the tenant base without meaningful lag.
What is the tenant pool like in Bloomington, MN?
Bloomington, MN draws a consistent base of working renters. Demand at the $1,719/mo rent level is reasonable for standard single-family and small multi rentals.
Is Bloomington in MN worth investing in?
Bloomington, MN scores 3.0/5 for investability. Home values sit at $412K and rents near $1,719/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
What strategy should investors use in Bloomington, MN?
Most investors in Bloomington, 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.
How much should I expect to pay for a home in Bloomington, MN?
Bloomington, MN median home values land near $412K. That is reasonable territory for investors looking at $1,719/mo-per-month rentals.
You know 55438 now. You don’t know where it ranks.
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How 55438 ranks in Minneapolis-St. Paul-Bloomington, MN-WI
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