Real Estate Investing in Balaton, Minnesota (56115)
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Should you buy in 56115 (Balaton, 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.
- Elevated vacancy: 8.6% 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 Balaton, MN (56115)?
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Market Analysis: 56115 Balaton
From a cash-flow lens, ZIP 56115 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $227K median. It rewards specialists, not generalists.
The investment case in 56115 is significant only for operators who understand what they are buying. A $227K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Nearby ZIPs in Balaton have seen price recovery that 56115 has not matched. Lyon data supports the view that the spread is structural rather than temporary.
The 56115 ZIP's population of 1,262 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that stands at the need for careful underwriting.
Strategically, 56115 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Balaton:
Market Trends
Home Value History (with trend line)
📊 How Does 56115 Compare?
| Metric | 56115 | Balaton | Minnesota |
|---|---|---|---|
| Home Value | $226,654 | $226,654 | $340,597 |
| 5-Year CAGR | 6.2% | 6.2% | 4.9% |
| Avg Rent | $1,116 | $1,116 | - |
| Cap Rate | 3.8% | 3.8% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56115 (Balaton, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $226,654 |
| Monthly Rent | $1,116 |
| Price-to-Rent | 16.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.9% |
| Cap Rate | 3.8% |
| 5-Year IRR | 10.1% |
📈 Home Appreciation
| 1-Year | +13.9% ▲ |
| 3-Year CAGR | +6.3% ▲ |
| 5-Year CAGR | +6.2% ▲ |
| 10-Year CAGR | +4.5% ▲ |
🏠 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 (3.8%). 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 56115
Population: 1,262
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
Frequently Asked Questions
Is it easy to find good tenants in Balaton, MN?
Balaton, MN offers a consistent renter base at the $1,116/mo rent level. Tenant turnover is reasonable for well-managed properties.
Is Balaton, MN a good market for buy-and-hold investors?
Balaton, MN rates 3.0/5 for investability. With median values at $227K and rents near $1,116/mo, the market offers reasonable fundamentals for rental investors.
What is the average home sale price in Balaton, MN?
Balaton, MN median home values land near $227K. That is reasonable territory for investors looking at $1,116/mo-per-month rentals.
Are there empty rentals in Balaton, MN?
Balaton, MN carries elevated vacancy risk. Expect stable absorption at market rents of $1,116/mo.
Are landlord laws favorable in Balaton, MN?
For rental operators, Balaton, MN rates as balanced. The regulatory environment standard buy-and-hold operations.
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