Real Estate Investing in Rochester, Minnesota (55902)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55902 (Rochester, MN)? Our answer, based on the numbers below.
Solid choice — stable market with a reasonable entry point and good rental backup if you ever need to move.
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 Rochester, MN (55902)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 55902 Rochester
Not every below-median market is a bargain. Rochester's 55902 ZIP records signals that favor experienced operators who can absorb the risk $480K pricing implies.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 55902 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
ZIP 55902's metrics run below Olmsted County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Demographically, 55902 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.
Experienced landlords with local relationships tend to find 55902 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Rochester:
Property Strategy for 55902
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $267,574 | $1,690 | 4.5% | +4.7% | $133,787 |
| 3BR | $385,604 | $2,350 | 4.4% | +5.4% | $128,535 |
| 4BR | $527,513 | $2,840 | 3.9% | +5.9% | $131,878 |
| 5BR | $758,563 | — | — | +6.4% | $151,713 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55902 Compare?
| Metric | 55902 | Rochester | Rochester, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $480,299 | $252,381 | N/A | $340,597 |
| 5-Year CAGR | 4.0% | 4.2% | N/A | 4.9% |
| Avg Rent | $1,786 | $1,668 | N/A | - |
| Cap Rate | 2.9% | 3.5% | - | - |
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 55902 (Rochester, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $480,299 |
| Monthly Rent | $1,786 |
| Price-to-Rent | 22.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.5% |
| Cap Rate | 2.9% |
| 5-Year IRR | 6.9% |
📈 Home Appreciation
| 1-Year | +5.5% ▲ |
| 3-Year CAGR | +3.3% ▲ |
| 5-Year CAGR | +4.0% ▲ |
| 10-Year CAGR | +5.3% ▲ |
🏠 Rent Trends
| 1-Year | -3.0% ▼ |
| 3-Year CAGR | +1.0% ▲ |
| 5-Year CAGR | +2.9% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.9%). 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 55902
Population: 25,988
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 55902
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
Investor Insight: With 1,809 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How do experienced investors play Rochester, MN?
For Rochester, MN, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
Is Rochester, MN landlord-friendly?
Landlord-friendliness in Rochester, MN is balanced. Eviction timelines and lease enforcement are considered reasonable by most property managers.
Are rents high in Rochester, MN?
Rental rates in Rochester, MN average $1,786/mo. Tenant demand and $480K home values make the yield look reasonable by investor standards.
What is the rental occupancy rate in Rochester, MN?
Expect elevated vacancy in Rochester, MN. Rents at $1,786/mo are absorbed by the tenant base without meaningful lag.
Does house hacking make sense in Rochester, MN?
For house hackers, Rochester, MN is a challenging. The $1,786/mo rent on a unit helps defray the mortgage on a $480K property.
You know 55902 now. You don’t know where it ranks.
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How 55902 ranks in Rochester, MN
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