Real Estate Investing in Caledonia, Minnesota (55921)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 55921 (Caledonia, MN)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High price-to-rent: Price-to-rent ratio 25.3 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Caledonia, MN (55921)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 55921 Caledonia
This part of Houston County is not an easy win. The 55921 ZIP sits at softness in key indicators, and the playbook that works in cleaner markets often stalls here.
Rent of $972/mo on a $295K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 55921 sits below the stated 0.0% once reality is priced in.
Nearby ZIPs in Caledonia have seen price recovery that 55921 has not matched. Houston County data supports the view that the spread is structural rather than temporary.
Who lives in 55921 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
The 55921 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Caledonia:
Property Strategy for 55921
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $220,045 | $1,080 | 3.5% | +8.3% | $110,022 |
| 3BR | $258,896 | $1,430 | 4.0% | +7.9% | $86,299 |
| 4BR | $330,471 | $1,800 | 3.9% | +8.8% | $82,618 |
Market Trends
Home Value History (with trend line)
📊 How Does 55921 Compare?
| Metric | 55921 | Caledonia | Minnesota |
|---|---|---|---|
| Home Value | $294,918 | $294,918 | $340,597 |
| 5-Year CAGR | 7.3% | 7.3% | 4.9% |
| Avg Rent | $972 | $972 | - |
| Cap Rate | 2.6% | 2.6% | - |
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 55921 (Caledonia, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $294,918 |
| Monthly Rent | $972 |
| Price-to-Rent | 25.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.0% |
| Cap Rate | 2.6% |
| 5-Year IRR | 9.9% |
📈 Home Appreciation
| 1-Year | +7.0% ▲ |
| 3-Year CAGR | +6.3% ▲ |
| 5-Year CAGR | +7.3% ▲ |
| 10-Year CAGR | +6.8% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.6%). 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 55921
Population: 4,793
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 55921
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.
Frequently Asked Questions
Is MN a landlord-friendly state?
MN ranks as a balanced state for landlord-tenant law. Caledonia generally follows the statewide framework, so landlords face reasonable operating rules.
How strong is Caledonia, MN for real estate investors?
Our data puts Caledonia, MN at 3.0/5 for investability. Home prices of $295K and rents around $972/mo create a solid backdrop for investor activity.
How much does a house cost in Caledonia, MN?
Median home price in Caledonia, MN is near $295K, with a 5-year CAGR of 0.0%. Prices have been measured and supportive of buy-and-hold strategies.
Is Caledonia, MN good for house hacking?
Caledonia, MN offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $972/mo rent level.
Are renters plentiful in Caledonia, MN?
The tenant pool in Caledonia, MN is solid, supported by local employment and population fundamentals. Rents of $972/mo are well-absorbed by the market.
You know 55921 now. You don’t know where it ranks.
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