Real Estate Investing in Hollandale, Minnesota (56045)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56045 (Hollandale, 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: 9.3% vacancy may signal weakening demand.
• 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 Hollandale, MN (56045)?
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Market Analysis: 56045 Hollandale
The 56045 ZIP covers a section of Hollandale that demands careful diligence. Prices near $202K look accessible, but the work to make a deal cash flow is real.
The investment case in 56045 is sturdy only for operators who understand what they are buying. A $202K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Regionally, 56045 sits on the difficult end of the MN spectrum. The worth a close look for read — for disciplined operators — is that pricing reflects the difficulty.
Put differently, 966 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.
Experienced landlords with local relationships tend to find 56045 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 Hollandale:
Market Trends
Home Value History (with trend line)
📊 How Does 56045 Compare?
| Metric | 56045 | Hollandale | Albert Lea, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $201,820 | $201,820 | N/A | $340,597 |
| 5-Year CAGR | 5.8% | 5.8% | N/A | 4.9% |
| Avg Rent | $873 | $873 | N/A | - |
| Cap Rate | 3.4% | 3.4% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56045 (Hollandale, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $201,820 |
| 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 | 9.1% |
📈 Home Appreciation
| 1-Year | +12.4% ▲ |
| 3-Year CAGR | +5.1% ▲ |
| 5-Year CAGR | +5.8% ▲ |
| 10-Year CAGR | +8.8% ▲ |
🏠 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 (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 56045
Population: 966
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
🎓 Nearby Colleges & Universities
Investor Insight: With 1,454 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What are home prices like in Hollandale, MN?
In Hollandale, MN the median home value sits at $202K. Against the broader MN market, that reads as reasonable for most investors.
Is Hollandale, MN a good market for buy-and-hold investors?
Hollandale, MN scores 3.0/5 for investability. Home values sit at $202K and rents near $873/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
How strong is tenant demand in Hollandale, MN?
The tenant pool in Hollandale, MN is solid, supported by local employment and population fundamentals. Rents of $873/mo are well-absorbed by the market.
What is the typical rental rate in Hollandale, MN?
Rent in Hollandale, MN is around $873/mo. The resulting rent-to-value relationship with $202K pricing is reasonable for most investor models.
Is Hollandale, MN a good market for FHA house hackers?
The house hack math a challenging in Hollandale, MN. Owner-occupant buyers benefit from the $873/mo rents and $202K home values.
You know 56045 now. You don’t know where it ranks.
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How 56045 ranks in Albert Lea, MN
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