Real Estate Investing in Clarks Grove, Minnesota (56016)
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Should you buy in 56016 (Clarks Grove, 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.
- High vacancy: 12.2% of homes vacant — above national norms.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Clarks Grove, MN (56016)?
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Market Analysis: 56016 Clarks Grove
The 56016 ZIP covers a section of Clarks Grove that demands careful diligence. Prices near $229K look accessible, but the work to make a deal cash flow is real.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $229K asset, 56016 is the wrong submarket. If the plan prices in friction, the yield can still work.
Regionally, 56016 sits on the difficult end of the MN spectrum. The a strong candidate for read — for disciplined operators — is that pricing reflects the difficulty.
A sturdy renter share of 14% in 56016 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Experienced landlords with local relationships tend to find 56016 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Clarks Grove:
Market Trends
Home Value History (with trend line)
📊 How Does 56016 Compare?
| Metric | 56016 | Clarks Grove | Albert Lea, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $228,679 | $228,679 | N/A | $340,597 |
| 5-Year CAGR | 5.6% | 5.6% | N/A | 4.9% |
| Avg Rent | $945 | $945 | N/A | - |
| Cap Rate | 3.2% | 3.2% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56016 (Clarks Grove, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $228,679 |
| Monthly Rent | $945 |
| Price-to-Rent | 20.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.0% |
| Cap Rate | 3.2% |
| 5-Year IRR | 8.8% |
📈 Home Appreciation
| 1-Year | +8.4% ▲ |
| 3-Year CAGR | +3.8% ▲ |
| 5-Year CAGR | +5.6% ▲ |
| 10-Year CAGR | +7.7% ▲ |
🏠 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 (3.2%). 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 56016
Population: 991
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
Frequently Asked Questions
How does Clarks Grove, MN stack up for property investment?
With a 3.0/5 investability score, Clarks Grove, MN ranks as a solid market for rental property investors. Median prices of $229K and rents of $945/mo drive the underlying numbers.
What is the renter demographic in Clarks Grove, MN?
Tenant demand in Clarks Grove, MN is solid. The local workforce $945/mo rents across most rental classes.
Should investors worry about vacancy in Clarks Grove, MN?
Clarks Grove, MN carries elevated vacancy risk. Expect reliable absorption at market rents of $945/mo.
Does house hacking make sense in Clarks Grove, MN?
The a challenging house-hack environment in Clarks Grove, MN reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
How much rent can I charge in Clarks Grove, MN?
Rental rates in Clarks Grove, MN average $945/mo. Tenant demand and $229K home values make the yield look reasonable by investor standards.
You know 56016 now. You don’t know where it ranks.
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