Real Estate Investing in Wells, Minnesota (56097)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56097 (Wells, 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: 11.4% vacancy may signal weakening demand.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Wells, MN (56097)?
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Market Analysis: 56097 Wells
The 56097 ZIP in Wells, MN is a local-operator market. Outside capital chasing a $187K entry has to pair deep knowledge with the discount.
The investment case in 56097 is substantial only for operators who understand what they are buying. A $187K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
ZIP 56097's metrics run below Faribault's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Resident income in 56097 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
New investors are better served looking at Wells's stable or hybrid ZIPs before stepping into 56097. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Wells:
Property Strategy for 56097
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $129,587 | $970 | 5.4% | +11.1% | $64,793 |
| 3BR | $177,865 | $1,310 | 5.3% | +10.5% | $59,288 |
| 4BR | $236,781 | $1,390 | 4.2% | +10.5% | $59,195 |
Market Trends
Home Value History (with trend line)
📊 How Does 56097 Compare?
| Metric | 56097 | Wells | Minnesota |
|---|---|---|---|
| Home Value | $186,536 | $186,536 | $340,597 |
| 5-Year CAGR | 8.0% | 8.0% | 4.9% |
| Avg Rent | $873 | $873 | - |
| Cap Rate | 3.7% | 3.7% | - |
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 56097 (Wells, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $186,536 |
| Monthly Rent | $873 |
| Price-to-Rent | 17.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.6% |
| Cap Rate | 3.7% |
| 5-Year IRR | 11.6% |
📈 Home Appreciation
| 1-Year | +3.7% ▲ |
| 3-Year CAGR | +4.9% ▲ |
| 5-Year CAGR | +8.0% ▲ |
| 10-Year CAGR | +7.3% ▲ |
🏠 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 (3.7%). 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 56097
Population: 3,593
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 56097
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 strong is tenant demand in Wells, MN?
The tenant pool in Wells, MN is solid, supported by local employment and population fundamentals. Rents of $873/mo are well-absorbed by the market.
Does Wells, MN make sense for an investment property?
Wells, MN comes in at an investability rating of 3.0/5, with median home values near $187K and average rents around $873/mo. That combination puts it in the robust tier for investor interest.
Is house hacking profitable in Wells, MN?
The a challenging house-hack environment in Wells, MN reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
How much is rent in Wells, MN?
Average rent in Wells, MN is approximately $873/mo per month. Against $187K home values that yields a reasonable rent-to-price ratio.
Is housing expensive in Wells, MN?
Typical homes in Wells, MN go for around $187K. The 5-year CAGR of 0.0% even-keeled price movement.
You know 56097 now. You don’t know where it ranks.
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