Real Estate Investing in Ceylon, Minnesota (56121)
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Should you buy in 56121 (Ceylon, 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: 12.9% 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 Ceylon, MN (56121)?
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Market Analysis: 56121 Ceylon
ZIP 56121 in Ceylon, MN carries a solid set of headwinds. Home values near $173K and rents of $963/mo sit inside a market where underwriting has to be tight.
Stepping back, the numbers look inviting — $173K purchase price, 0.0% nominal cap — the work to hit that pro forma in 56121 is substantial and deserves full respect.
Statewide comparisons place 56121 among MN's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Demographically, 56121 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.
The 56121 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 Ceylon:
Market Trends
Home Value History (with trend line)
📊 How Does 56121 Compare?
| Metric | 56121 | Ceylon | Fairmont, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $172,912 | $172,912 | N/A | $340,597 |
| 5-Year CAGR | 6.4% | 6.4% | N/A | 4.9% |
| Avg Rent | $963 | $963 | N/A | - |
| Cap Rate | 4.3% | 4.3% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56121 (Ceylon, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $172,912 |
| Monthly Rent | $963 |
| Price-to-Rent | 15.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.7% |
| Cap Rate | 4.3% |
| 5-Year IRR | 10.8% |
📈 Home Appreciation
| 1-Year | +10.6% ▲ |
| 3-Year CAGR | +5.1% ▲ |
| 5-Year CAGR | +6.4% ▲ |
| 10-Year CAGR | +7.2% ▲ |
🏠 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 (4.3%). 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 56121
Population: 579
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
Frequently Asked Questions
Is the tenant base reliable in Ceylon, MN?
Ceylon, MN draws a consistent base of working renters. Demand at the $963/mo rent level is reasonable for standard single-family and small multi rentals.
Are there empty rentals in Ceylon, MN?
Rental vacancy in Ceylon, MN is elevated. Investors should budget normal turnover but not chronic empty units.
Can I house hack in Ceylon, MN?
For house hackers, Ceylon, MN is a challenging. The $963/mo rent on a unit helps defray the mortgage on a $173K property.
How much rent can I charge in Ceylon, MN?
The typical rental in Ceylon, MN commands about $963/mo monthly. That rent profile steady cash flow against the $173K purchase basis.
Is Ceylon, MN landlord-friendly?
Ceylon, MN operates under MN law, which is balanced overall for landlords. Expect measured treatment in typical lease and eviction cases.
You know 56121 now. You don’t know where it ranks.
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How 56121 ranks in Fairmont, MN
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