Real Estate Investing in Delavan, Minnesota (56023)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56023 (Delavan, MN)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- High vacancy: 12.0% 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 Delavan, MN (56023)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 56023 Delavan
ZIP 56023 inside Faribault County looks affordable on the surface — median value of $202K — but the discount exists for reasons that a careful buyer should understand before committing.
The 56023 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Statewide comparisons place 56023 among MN's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Employment concentration in 56023 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
Distressed ZIPs reward experience. resilient returns are possible in 56023, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Delavan:
Market Trends
Home Value History (with trend line)
📊 How Does 56023 Compare?
| Metric | 56023 | Delavan | Minnesota |
|---|---|---|---|
| Home Value | $202,488 | $202,488 | $340,597 |
| 5-Year CAGR | N/A | N/A | 4.9% |
| Avg Rent | $873 | $873 | - |
| Cap Rate | 3.4% | 3.4% | - |
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 56023 (Delavan, MN). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 56023 (Delavan, MN)?
~25 seconds · no account needed · your report is anonymous
📊 Market Snapshot
| Home Value | $202,488 |
| Monthly Rent | $873 |
| Price-to-Rent | 19.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.2% |
| Cap Rate | 3.4% |
| 5-Year IRR | 11.4% |
📈 Home Appreciation
| 1-Year | +10.2% ▲ |
| 3-Year CAGR | +8.0% ▲ |
| 5-Year CAGR | N/A |
| 10-Year CAGR | N/A |
🏠 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 (3.4%). 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 56023
Population: 527
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
Is Delavan, MN a good place for real estate investing?
The 2.0/5 investability rating in Delavan, MN reflects its $202K prices and $873/mo rents. Investors generally consider it a solid option within MN.
What is the median home value in Delavan, MN?
Delavan, MN home values average about $202K. That price point suits investors targeting rentals with $873/mo in monthly income.
Is vacancy a concern in Delavan, MN?
Occupancy in Delavan, MN runs even-keeled with elevated vacancy. Well-priced units at $873/mo lease on reasonable timelines.
What strategy should investors use in Delavan, MN?
In Delavan, MN the healthy play is typically careful cash-flow rentals with hands-on management. The combination of $202K prices and $873/mo rents suits that approach.
How much is rent in Delavan, MN?
Average rent in Delavan, MN is approximately $873/mo per month. Against $202K home values that yields a reasonable rent-to-price ratio.
You know 56023 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 56023 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.
AI Market Advisor
Ask questions about investing in 56023 (Delavan)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 56023 (Delavan, MN).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.