Real Estate Investing in Granada, Minnesota (56039)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56039 (Granada, MN)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 15.0% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 32.5 — hard to cash-flow at these prices.
• 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 Granada, MN (56039)?
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Market Analysis: 56039 Granada
Investors eyeing 56039 need to respect the fundamentals at play. Home values of $368K come alongside slower price movement and elevated management overhead.
The 56039 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 Granada have seen price recovery that 56039 has not matched. Martin County data supports the view that the spread is structural rather than temporary.
A solid renter share of 14% in 56039 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
The 56039 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 Granada:
Property Strategy for 56039
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 3BR | $247,073 | $1,390 | 4.1% | +9.0% | $82,358 |
| 4BR | $315,275 | $1,390 | 3.2% | +10.1% | $78,819 |
Market Trends
Home Value History (with trend line)
📊 How Does 56039 Compare?
| Metric | 56039 | Granada | Fairmont, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $368,159 | $368,159 | N/A | $340,597 |
| 5-Year CAGR | 11.2% | 11.2% | N/A | 4.9% |
| Avg Rent | $945 | $945 | N/A | - |
| Cap Rate | 2.0% | 2.0% | - | - |
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 56039 (Granada, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $368,159 |
| Monthly Rent | $945 |
| Price-to-Rent | 32.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.1% |
| Cap Rate | 2.0% |
| 5-Year IRR | 13.2% |
📈 Home Appreciation
| 1-Year | +14.6% ▲ |
| 3-Year CAGR | +10.6% ▲ |
| 5-Year CAGR | +11.2% ▲ |
| 10-Year CAGR | +9.3% ▲ |
🏠 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 (2.0%). 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 56039
Population: 898
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 56039
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 Granada, MN?
Investors in Granada, MN typically see rents near $945/mo per month against $368K home values - a solid setup for rental cash flow.
What is the median home value in Granada, MN?
In Granada, MN the median home value sits at $368K. Against the broader MN market, that reads as reasonable for most investors.
Does Granada, MN make sense for an investment property?
Granada, MN scores 3.0/5 for investability. Home values sit at $368K and rents near $945/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
What approach is best for Granada, MN real estate?
Investors usually favor careful cash-flow rentals with hands-on management in Granada, MN. With home values at $368K and rents near $945/mo, other strategies can work but produce steady rather than outsized returns.
Is Granada, MN good for house hacking?
The a challenging house-hack environment in Granada, MN reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
You know 56039 now. You don’t know where it ranks.
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