Real Estate Investing in Duluth, Minnesota (55806)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55806 (Duluth, MN)? Our answer, based on the numbers below.
Mixed — home prices are stretched relative to local incomes. Run the math on your specific situation.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 8.6% vacancy may signal weakening demand.
What’s happening in Duluth, MN (55806)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 55806 Duluth
Not every below-median market is a bargain. Duluth's 55806 ZIP clocks in at signals that favor experienced operators who can absorb the risk $218K pricing implies.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 55806 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Regionally, 55806 sits on the difficult end of the MN spectrum. The a solid fit for read — for disciplined operators — is that pricing reflects the difficulty.
In practical terms, 9,545 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
New investors are better served looking at Duluth's stable or hybrid ZIPs before stepping into 55806. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Duluth:
Property Strategy for 55806
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $196,767 | $1,160 | 4.2% | +8.7% | $98,383 |
| 3BR | $209,974 | $1,590 | 5.5% | +8.3% | $69,991 |
| 4BR | $238,671 | $1,950 | 5.9% | +7.3% | $59,668 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55806 Compare?
| Metric | 55806 | Duluth | Duluth, MN-WI | Minnesota |
|---|---|---|---|---|
| Home Value | $217,684 | $278,655 | N/A | $340,597 |
| 5-Year CAGR | 6.8% | 6.2% | N/A | 4.9% |
| Avg Rent | $1,240 | $1,528 | N/A | - |
| Cap Rate | 4.4% | 4.0% | - | - |
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 55806 (Duluth, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $217,684 |
| Monthly Rent | $1,240 |
| Price-to-Rent | 14.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.8% |
| Cap Rate | 4.4% |
| 5-Year IRR | 11.2% |
📈 Home Appreciation
| 1-Year | +7.4% ▲ |
| 3-Year CAGR | +5.6% ▲ |
| 5-Year CAGR | +6.8% ▲ |
| 10-Year CAGR | +7.8% ▲ |
🏠 Rent Trends
| 1-Year | -1.3% ▼ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.4%). 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 55806
Population: 9,545
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 55806
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
LAURA MACARTHUR ELEMENTARY
MYERS-WILKINS ELEMENTARY
Academic Excellence Online
RALEIGH PRIMARY/EL ACADEMY
DENFELD HIGH SCHOOL
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 2,991 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Does Duluth, MN make sense for an investment property?
The 3.0/5 investability rating in Duluth, MN reflects its $218K prices and $1,240/mo rents. Investors generally consider it a solid option within MN.
What are rental rates like in Duluth, MN?
Rental rates in Duluth, MN average $1,240/mo. Tenant demand and $218K home values make the yield look reasonable by investor standards.
Which investment style suits Duluth, MN?
A careful cash-flow rentals with hands-on management strategy Duluth, MN best. The market produces predictable results for that approach at the $218K price point.
Are there empty rentals in Duluth, MN?
Duluth, MN sees elevated vacancy, which is reasonable relative to the broader MN rental market.
Are homes affordable in Duluth, MN?
Duluth, MN median home values land near $218K. That is reasonable territory for investors looking at $1,240/mo-per-month rentals.
You know 55806 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 55806 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 55806 ranks in Duluth, MN-WI
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