Real Estate Investing in Rochester, Minnesota (55904)
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Should you buy in 55904 (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 cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
No major risk flags on the data we track.
What’s happening in Rochester, MN (55904)?
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Market Analysis: 55904 Rochester
Investors eyeing 55904 need to respect the fundamentals at play. Home values of $298K come alongside slower price movement and elevated management overhead.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 55904 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Within MN, ZIP 55904 trails on several market indicators that neighboring Olmsted County submarkets outperform. The gap is real and impressive enough to shape underwriting.
A solid renter share of 34% in 55904 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Strategy in 55904 is an operator game, not a passive one. Stepping back, entry prices of $298K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Rochester:
Property Strategy for 55904
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $162,506 | $1,190 | 5.3% | +5.7% | $162,506 |
| 2BR | $228,567 | $1,410 | 4.4% | +5.7% | $114,283 |
| 3BR | $270,666 | $1,960 | 5.2% | +5.8% | $90,222 |
| 4BR | $353,167 | $2,370 | 4.8% | +5.6% | $88,292 |
| 5BR | $468,976 | — | — | +6.0% | $93,795 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55904 Compare?
| Metric | 55904 | Rochester | Rochester, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $298,095 | $252,381 | N/A | $340,597 |
| 5-Year CAGR | 4.6% | 4.2% | N/A | 4.9% |
| Avg Rent | $1,693 | $1,668 | N/A | - |
| Cap Rate | 4.4% | 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 55904 (Rochester, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $298,095 |
| Monthly Rent | $1,693 |
| Price-to-Rent | 14.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.8% |
| Cap Rate | 4.4% |
| 5-Year IRR | 9.0% |
📈 Home Appreciation
| 1-Year | +7.8% ▲ |
| 3-Year CAGR | +4.1% ▲ |
| 5-Year CAGR | +4.6% ▲ |
| 10-Year CAGR | +6.7% ▲ |
🏠 Rent Trends
| 1-Year | +4.3% ▲ |
| 3-Year CAGR | +4.1% ▲ |
| 5-Year CAGR | +5.3% ▲ |
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 55904
Population: 29,682
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 55904
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
What type of investing works in Rochester, MN?
Investors usually favor careful cash-flow rentals with hands-on management in Rochester, MN. With home values at $298K and rents near $1,693/mo, other strategies can work but produce measured rather than outsized returns.
What is the average home sale price in Rochester, MN?
Expect median prices around $298K in Rochester, MN. The market has run at a 0.0% 5-year CAGR, so entry costs have been steady.
Is Rochester, MN a good place for real estate investing?
Rochester, MN sits at an investability rating of 3.0/5, with median home values near $298K and average rents around $1,693/mo. That combination puts it in the sturdy tier for investor interest.
Are eviction rules reasonable in Rochester, MN?
For rental operators, Rochester, MN rates as balanced. The regulatory environment standard buy-and-hold operations.
Where do rents currently stand in Rochester, MN?
The typical rental in Rochester, MN commands about $1,693/mo monthly. That rent profile steady cash flow against the $298K purchase basis.
You know 55904 now. You don’t know where it ranks.
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How 55904 ranks in Rochester, MN
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