Real Estate Investing in Madison Lake, Minnesota (56063)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56063 (Madison Lake, 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: 26.9% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 36.1 — 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 Madison Lake, MN (56063)?
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Market Analysis: 56063 Madison Lake
ZIP 56063 in Madison Lake, MN carries a notable set of headwinds. Home values near $460K and rents of $1,062/mo sit inside a market where underwriting has to be tight.
The 56063 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Looking more closely, 56063 offers a low basis, the region around Madison Lake has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Who lives in 56063 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
The 56063 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 Madison Lake:
Property Strategy for 56063
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $335,404 | $1,180 | 2.5% | +6.9% | $167,702 |
| 3BR | $424,638 | $1,630 | 2.8% | +6.8% | $141,546 |
| 4BR | $555,617 | $1,910 | 2.5% | +7.4% | $138,904 |
| 5BR | $664,882 | — | — | +7.6% | $132,976 |
Market Trends
Home Value History (with trend line)
📊 How Does 56063 Compare?
| Metric | 56063 | Madison Lake | Minnesota |
|---|---|---|---|
| Home Value | $460,490 | $460,490 | $340,597 |
| 5-Year CAGR | 6.1% | 6.1% | 4.9% |
| Avg Rent | $1,062 | $1,062 | - |
| Cap Rate | 1.8% | 1.8% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56063 (Madison Lake, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $460,490 |
| Monthly Rent | $1,062 |
| Price-to-Rent | 36.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.8% |
| Cap Rate | 1.8% |
| 5-Year IRR | 7.9% |
📈 Home Appreciation
| 1-Year | +8.2% ▲ |
| 3-Year CAGR | +5.6% ▲ |
| 5-Year CAGR | +6.1% ▲ |
| 10-Year CAGR | +6.7% ▲ |
🏠 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 (1.8%). 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 56063
Population: 3,059
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 2,578 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is Madison Lake, MN good for landlords?
The landlord environment in Madison Lake, MN is balanced. Statewide rules shape most day-to-day operations for rental owners.
What do rentals go for in Madison Lake, MN?
Expect rents around $1,062/mo per month in Madison Lake, MN. With home values at $460K, the yield math works out to reasonable levels for rental investors.
How strong is tenant demand in Madison Lake, MN?
The renter base in Madison Lake, MN is reasonable for the $1,062/mo price point. Screening well and pricing to market typically yields stable tenants.
How strong is Madison Lake, MN for real estate investors?
Madison Lake, MN reflects an investability rating of 3.0/5, with median home values near $460K and average rents around $1,062/mo. That combination puts it in the durable tier for investor interest.
Are homes affordable in Madison Lake, MN?
Homes in Madison Lake, MN typically sell near $460K. Prices have moved at a 0.0% 5-year CAGR, which stable long-term demand.
You know 56063 now. You don’t know where it ranks.
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How 56063 ranks in Minneapolis-St. Paul-Bloomington, MN-WI
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