Real Estate Investing in Rochester, Minnesota (55906)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55906 (Rochester, 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.
No major risk flags on the data we track.
What’s happening in Rochester, MN (55906)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 55906 Rochester
ZIP 55906 inside Olmsted County looks affordable on the surface — median value of $404K — 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 55906 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
In the broader MN picture, 55906 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
Resident income in 55906 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Strategy in 55906 is an operator game, not a passive one. Turning to rents, entry prices of $404K 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 55906
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $159,967 | $1,040 | 4.7% | +4.3% | $159,967 |
| 2BR | $244,801 | $1,230 | 3.6% | +5.4% | $122,400 |
| 3BR | $307,244 | $1,710 | 4.0% | +5.4% | $102,415 |
| 4BR | $464,053 | $2,060 | 3.2% | +5.4% | $116,013 |
| 5BR | $583,731 | — | — | +6.1% | $116,746 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 55906 Compare?
| Metric | 55906 | Rochester | Rochester, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $403,596 | $252,381 | N/A | $340,597 |
| 5-Year CAGR | 3.9% | 4.2% | N/A | 4.9% |
| Avg Rent | $1,566 | $1,668 | N/A | - |
| Cap Rate | 3.0% | 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 55906 (Rochester, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $403,596 |
| Monthly Rent | $1,566 |
| Price-to-Rent | 21.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.7% |
| Cap Rate | 3.0% |
| 5-Year IRR | 6.9% |
📈 Home Appreciation
| 1-Year | +6.4% ▲ |
| 3-Year CAGR | +3.2% ▲ |
| 5-Year CAGR | +3.9% ▲ |
| 10-Year CAGR | +5.6% ▲ |
🏠 Rent Trends
| 1-Year | +7.4% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.0%). 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 55906
Population: 20,080
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 55906
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 does Rochester, MN rate as a rental market?
Our data puts Rochester, MN at 3.0/5 for investability. Home prices of $404K and rents around $1,566/mo create a solid backdrop for investor activity.
Are there empty rentals in Rochester, MN?
Vacancy risk in Rochester, MN is elevated. That supports even-keeled cash flow for typical rental holds.
How much should I expect to pay for a home in Rochester, MN?
Rochester, MN home values average about $404K. That price point suits investors targeting rentals with $1,566/mo in monthly income.
Is MN a landlord-friendly state?
MN law balanced for landlords, and Rochester inherits those rules. Investors should still review local ordinances for rental licensing.
What type of investing works in Rochester, MN?
In Rochester, MN the durable play is typically careful cash-flow rentals with hands-on management. The combination of $404K prices and $1,566/mo rents suits that approach.
You know 55906 now. You don’t know where it ranks.
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How 55906 ranks in Rochester, MN
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