Real Estate Investing in Ellendale, Minnesota (56026)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56026 (Ellendale, 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.
- High price-to-rent: Price-to-rent ratio 28.8 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Ellendale, MN (56026)?
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Market Analysis: 56026 Ellendale
Put differently, ZIP 56026 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $317K median. It rewards specialists, not generalists.
On balance, the numbers look inviting — $317K purchase price, 0.0% nominal cap — the work to hit that pro forma in 56026 is substantial and deserves full respect.
Nearby ZIPs in Ellendale have seen price recovery that 56026 has not matched. Freeborn County data supports the view that the spread is structural rather than temporary.
Demographically, 56026 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
New investors are better served looking at Ellendale's stable or hybrid ZIPs before stepping into 56026. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Ellendale:
Property Strategy for 56026
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $223,225 | $1,020 | 3.3% | +7.9% | $111,612 |
| 3BR | $270,724 | $1,370 | 3.6% | +7.8% | $90,241 |
| 4BR | $333,085 | $1,590 | 3.4% | +7.9% | $83,271 |
Market Trends
Home Value History (with trend line)
📊 How Does 56026 Compare?
| Metric | 56026 | Ellendale | Albert Lea, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $317,396 | $317,396 | N/A | $340,597 |
| 5-Year CAGR | 6.8% | 6.8% | N/A | 4.9% |
| Avg Rent | $918 | $918 | N/A | - |
| Cap Rate | 2.3% | 2.3% | - | - |
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 56026 (Ellendale, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $317,396 |
| Monthly Rent | $918 |
| Price-to-Rent | 28.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.5% |
| Cap Rate | 2.3% |
| 5-Year IRR | 9.0% |
📈 Home Appreciation
| 1-Year | +8.2% ▲ |
| 3-Year CAGR | +6.3% ▲ |
| 5-Year CAGR | +6.8% ▲ |
| 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 (2.3%). 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 56026
Population: 1,978
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 56026
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
How much is rent in Ellendale, MN?
The typical rental in Ellendale, MN commands about $918/mo monthly. That rent profile reliable cash flow against the $317K purchase basis.
What kind of tenants rent in Ellendale, MN?
The tenant pool in Ellendale, MN is solid, supported by local employment and population fundamentals. Rents of $918/mo are well-absorbed by the market.
What is the typical vacancy rate in Ellendale, MN?
Ellendale, MN carries elevated vacancy risk. Expect stable absorption at market rents of $918/mo.
How do landlord-tenant laws work in Ellendale, MN?
Ellendale, MN operates under MN law, which is balanced overall for landlords. Expect stable treatment in typical lease and eviction cases.
What is the smart move for investors in Ellendale, MN?
The best-fit strategy in Ellendale, MN is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
You know 56026 now. You don’t know where it ranks.
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