Real Estate Investing in Cotton, Minnesota (55724)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55724 (Cotton, 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 vacancy: 55.6% of homes vacant — above national norms.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Cotton, MN (55724)?
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Market Analysis: 55724 Cotton
Not every below-median market is a bargain. Cotton's 55724 ZIP reflects signals that favor experienced operators who can absorb the risk $234K pricing implies.
Distressed markets are won on execution, not on spreadsheets. ZIP 55724 reports the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Nearby ZIPs in Cotton have seen price recovery that 55724 has not matched. Saint Louis County data supports the view that the spread is structural rather than temporary.
The 55724 ZIP's population of 719 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that stands at the need for careful underwriting.
The right play in 55724 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Cotton:
Property Strategy for 55724
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $222,586 | $1,250 | 4.0% | +5.9% | $111,293 |
| 3BR | $315,416 | $1,710 | 3.9% | +7.1% | $105,139 |
Market Trends
Home Value History (with trend line)
📊 How Does 55724 Compare?
| Metric | 55724 | Cotton | Duluth, MN-WI | Minnesota |
|---|---|---|---|---|
| Home Value | $233,670 | $233,670 | N/A | $340,597 |
| 5-Year CAGR | 6.0% | 6.0% | N/A | 4.9% |
| Avg Rent | $1,125 | $1,125 | N/A | - |
| Cap Rate | 3.8% | 3.8% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 55724 (Cotton, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $233,670 |
| Monthly Rent | $1,125 |
| Price-to-Rent | 17.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.8% |
| Cap Rate | 3.8% |
| 5-Year IRR | 9.8% |
📈 Home Appreciation
| 1-Year | +14.7% ▲ |
| 3-Year CAGR | +6.2% ▲ |
| 5-Year CAGR | +6.0% ▲ |
| 10-Year CAGR | +6.8% ▲ |
🏠 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 (3.8%). 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 55724
Population: 719
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 home price in Cotton, MN?
Median home price in Cotton, MN is near $234K, with a 5-year CAGR of 0.0%. Prices have been stable and supportive of buy-and-hold strategies.
Is Cotton, MN a friendly market for rental owners?
Rental owners in Cotton, MN deal with a balanced legal framework. Most standard eviction processes run on reasonable timelines.
How viable is house hacking in Cotton, MN?
Cotton, MN offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,125/mo rent level.
Is Cotton, MN a good market for buy-and-hold investors?
Cotton, MN rates 3.0/5 for investability. With median values at $234K and rents near $1,125/mo, the market offers reasonable fundamentals for rental investors.
What is the renter demographic in Cotton, MN?
Tenant demand in Cotton, MN is solid. The local workforce $1,125/mo rents across most rental classes.
You know 55724 now. You don’t know where it ranks.
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How 55724 ranks in Duluth, MN-WI
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