Real Estate Investing in Babbitt, Minnesota (55706)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55706 (Babbitt, MN)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 27.7% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Babbitt, MN (55706)?
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Market Analysis: 55706 Babbitt
On balance, ZIP 55706 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $154K median. It rewards specialists, not generalists.
Looking more closely, the numbers look inviting — $154K purchase price, 0.0% nominal cap — the work to hit that pro forma in 55706 is substantial and deserves full respect.
Regionally, 55706 sits on the difficult end of the MN spectrum. The worth a close look for read — for disciplined operators — is that pricing reflects the difficulty.
Demographically, 55706 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.
Strategically, 55706 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Babbitt:
Property Strategy for 55706
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $127,067 | $1,030 | 5.8% | +9.9% | $63,533 |
| 3BR | $150,413 | $1,390 | 6.7% | +8.7% | $50,138 |
Market Trends
Home Value History (with trend line)
📊 How Does 55706 Compare?
| Metric | 55706 | Babbitt | Duluth, MN-WI | Minnesota |
|---|---|---|---|---|
| Home Value | $153,779 | $153,779 | N/A | $340,597 |
| 5-Year CAGR | 6.9% | 6.9% | N/A | 4.9% |
| Avg Rent | $927 | $927 | N/A | - |
| Cap Rate | 4.7% | 4.7% | - | - |
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 55706 (Babbitt, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $153,779 |
| Monthly Rent | $927 |
| Price-to-Rent | 13.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.2% |
| Cap Rate | 4.7% |
| 5-Year IRR | 11.6% |
📈 Home Appreciation
| 1-Year | +11.3% ▲ |
| 3-Year CAGR | +4.6% ▲ |
| 5-Year CAGR | +6.9% ▲ |
| 10-Year CAGR | +7.9% ▲ |
🏠 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 (4.7%). 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 55706
Population: 1,827
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 55706
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.
Frequently Asked Questions
Which real estate strategy fits Babbitt, MN?
For Babbitt, MN, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
How expensive is real estate in Babbitt, MN?
Homes in Babbitt, MN typically sell near $154K. Prices have moved at a 0.0% 5-year CAGR, which measured long-term demand.
Where do rents currently stand in Babbitt, MN?
Rent in Babbitt, MN is around $927/mo. The resulting rent-to-value relationship with $154K pricing is reasonable for most investor models.
Should investors worry about vacancy in Babbitt, MN?
Vacancy risk in Babbitt, MN is elevated. That supports steady cash flow for typical rental holds.
Are landlord laws favorable in Babbitt, MN?
For rental operators, Babbitt, MN rates as balanced. The regulatory environment standard buy-and-hold operations.
You know 55706 now. You don’t know where it ranks.
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How 55706 ranks in Duluth, MN-WI
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