Real Estate Investing in Butterfield, Minnesota (56120)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56120 (Butterfield, 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 vacancy: 13.7% of homes vacant — above national norms.
• 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 Butterfield, MN (56120)?
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Market Analysis: 56120 Butterfield
ZIP 56120 in Butterfield, MN carries a healthy set of headwinds. Home values near $198K and rents of $873/mo sit inside a market where underwriting has to be tight.
Distressed markets are won on execution, not on spreadsheets. ZIP 56120 clocks in at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
From a cash-flow lens, 56120 offers a low basis, the region around Butterfield has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Looking more closely, 925 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.
tilts toward the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Butterfield:
Market Trends
Home Value History (with trend line)
📊 How Does 56120 Compare?
| Metric | 56120 | Butterfield | Minnesota |
|---|---|---|---|
| Home Value | $197,652 | $197,652 | $340,597 |
| 5-Year CAGR | 8.8% | 8.8% | 4.9% |
| Avg Rent | $873 | $873 | - |
| Cap Rate | 3.5% | 3.5% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56120 (Butterfield, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $197,652 |
| Monthly Rent | $873 |
| Price-to-Rent | 18.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.3% |
| Cap Rate | 3.5% |
| 5-Year IRR | 12.2% |
📈 Home Appreciation
| 1-Year | +8.1% ▲ |
| 3-Year CAGR | +6.4% ▲ |
| 5-Year CAGR | +8.8% ▲ |
| 10-Year CAGR | +9.0% ▲ |
🏠 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 (3.5%). 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 56120
Population: 925
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 56120
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
Where do home prices stand in Butterfield, MN?
Expect median prices around $198K in Butterfield, MN. The market has run at a 0.0% 5-year CAGR, so entry costs have been steady.
What are rental rates like in Butterfield, MN?
Rents in Butterfield, MN run near $873/mo. Compared with median home prices of $198K that produces solid gross yields for typical rentals.
Which investment style suits Butterfield, MN?
In Butterfield, MN the impressive play is typically careful cash-flow rentals with hands-on management. The combination of $198K prices and $873/mo rents suits that approach.
Is MN a landlord-friendly state?
MN ranks as a balanced state for landlord-tenant law. Butterfield generally follows the statewide framework, so landlords face reasonable operating rules.
Is Butterfield, MN a good market for buy-and-hold investors?
Butterfield, MN scores 3.0/5 for investability. Home values sit at $198K and rents near $873/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
You know 56120 now. You don’t know where it ranks.
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