Real Estate Investing in Albert Lea, Minnesota (56007)
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Should you buy in 56007 (Albert Lea, 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.
- Elevated vacancy: 8.2% vacancy may signal weakening demand.
What’s happening in Albert Lea, MN (56007)?
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Market Analysis: 56007 Albert Lea
Not every below-median market is a bargain. Albert Lea's 56007 ZIP reports signals that favor experienced operators who can absorb the risk $184K pricing implies.
The 56007 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Nearby ZIPs in Albert Lea have seen price recovery that 56007 has not matched. Freeborn County data supports the view that the spread is structural rather than temporary.
From an investor standpoint, 21,467 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.
The right play in 56007 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Albert Lea:
Property Strategy for 56007
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $68,817 | $740 | 7.7% | +6.6% | $68,817 |
| 2BR | $133,950 | $970 | 5.2% | +6.9% | $66,975 |
| 3BR | $180,392 | $1,280 | 5.1% | +7.3% | $60,131 |
| 4BR | $249,408 | $1,430 | 4.1% | +7.6% | $62,352 |
| 5BR | $290,862 | — | — | +7.9% | $58,172 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 56007 Compare?
| Metric | 56007 | Albert Lea | Albert Lea, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $184,012 | $184,012 | N/A | $340,597 |
| 5-Year CAGR | 5.0% | 5.0% | N/A | 4.9% |
| Avg Rent | $1,046 | $1,046 | N/A | - |
| Cap Rate | 4.4% | 4.4% | - | - |
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 56007 (Albert Lea, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $184,012 |
| Monthly Rent | $1,046 |
| Price-to-Rent | 14.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.8% |
| Cap Rate | 4.4% |
| 5-Year IRR | 9.4% |
📈 Home Appreciation
| 1-Year | +6.0% ▲ |
| 3-Year CAGR | +3.3% ▲ |
| 5-Year CAGR | +5.0% ▲ |
| 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 (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 56007
Population: 21,467
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 56007
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
What are rental rates like in Albert Lea, MN?
Rental rates in Albert Lea, MN average $1,046/mo. Tenant demand and $184K home values make the yield look reasonable by investor standards.
What type of investing works in Albert Lea, MN?
Investors usually favor careful cash-flow rentals with hands-on management in Albert Lea, MN. With home values at $184K and rents near $1,046/mo, other strategies can work but produce measured rather than outsized returns.
What is the rental occupancy rate in Albert Lea, MN?
Occupancy in Albert Lea, MN runs reliable with elevated vacancy. Well-priced units at $1,046/mo lease on reasonable timelines.
Is MN a landlord-friendly state?
The landlord environment in Albert Lea, MN is balanced. Statewide rules shape most day-to-day operations for rental owners.
Where do home prices stand in Albert Lea, MN?
Albert Lea, MN median home values land near $184K. That is reasonable territory for investors looking at $1,046/mo-per-month rentals.
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