Real Estate Investing in Rochester, Minnesota (55901)
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Should you buy in 55901 (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 (55901)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 55901 Rochester
ZIP 55901 inside Olmsted County looks affordable on the surface — median value of $332K — but the discount exists for reasons that a careful buyer should understand before committing.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 55901 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Within MN, ZIP 55901 trails on several market indicators that neighboring Olmsted County submarkets outperform. The gap is real and solid enough to shape underwriting.
Meanwhile, 58,260 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.
Strategically, 55901 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 Rochester:
Property Strategy for 55901
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $152,113 | $1,240 | 5.9% | +12.1% | $152,113 |
| 2BR | $227,998 | $1,470 | 4.6% | +5.8% | $113,999 |
| 3BR | $292,661 | $2,040 | 5.0% | +5.3% | $97,554 |
| 4BR | $360,581 | $2,470 | 4.9% | +5.5% | $90,145 |
| 5BR | $470,910 | — | — | +5.6% | $94,182 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55901 Compare?
| Metric | 55901 | Rochester | Rochester, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $332,295 | $252,381 | N/A | $340,597 |
| 5-Year CAGR | 4.1% | 4.2% | N/A | 4.9% |
| Avg Rent | $1,629 | $1,668 | N/A | - |
| Cap Rate | 3.8% | 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 55901 (Rochester, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $332,295 |
| Monthly Rent | $1,629 |
| Price-to-Rent | 17.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.9% |
| Cap Rate | 3.8% |
| 5-Year IRR | 8.0% |
📈 Home Appreciation
| 1-Year | +6.1% ▲ |
| 3-Year CAGR | +3.5% ▲ |
| 5-Year CAGR | +4.1% ▲ |
| 10-Year CAGR | +6.0% ▲ |
🏠 Rent Trends
| 1-Year | -2.7% ▼ |
| 3-Year CAGR | +2.1% ▲ |
| 5-Year CAGR | +3.6% ▲ |
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 55901
Population: 58,260
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 55901
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
Is real estate in Rochester, MN a good investment right now?
With a 3.0/5 investability score, Rochester, MN ranks as a solid market for rental property investors. Median prices of $332K and rents of $1,629/mo drive the underlying numbers.
What is the renter demographic in Rochester, MN?
Rochester, MN draws a predictable base of working renters. Demand at the $1,629/mo rent level is reasonable for standard single-family and small multi rentals.
What is the smart move for investors in 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.
Does house hacking make sense in Rochester, MN?
Rochester, MN offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,629/mo rent level.
What is the typical rental rate in Rochester, MN?
Rental rates in Rochester, MN average $1,629/mo. Tenant demand and $332K home values make the yield look reasonable by investor standards.
You know 55901 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 55901 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 55901 ranks in Rochester, MN
Every ZIP in this metro, ranked. Free.
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