Real Estate Investing in Dunnell, Minnesota (56127)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56127 (Dunnell, MN)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 13.9% of homes vacant — above national norms.
- Higher unemployment: 17.6% unemployment — tenant risk signal.
• 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 Dunnell, MN (56127)?
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Market Analysis: 56127 Dunnell
ZIP 56127 inside Martin County looks affordable on the surface — median value of $362K — but the discount exists for reasons that a careful buyer should understand before committing.
Rent of $1,215/mo on a $362K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 56127 sits below the stated 0.0% once reality is priced in.
The gap between 56127 and stronger Dunnell ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Resident income in 56127 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Experienced landlords with local relationships tend to find 56127 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Dunnell:
Market Trends
Home Value History (with trend line)
📊 How Does 56127 Compare?
| Metric | 56127 | Dunnell | Fairmont, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $362,432 | $362,432 | N/A | $340,597 |
| 5-Year CAGR | 11.0% | 11.0% | N/A | 4.9% |
| Avg Rent | $1,215 | $1,215 | N/A | - |
| Cap Rate | 2.6% | 2.6% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56127 (Dunnell, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $362,432 |
| Monthly Rent | $1,215 |
| Price-to-Rent | 24.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.0% |
| Cap Rate | 2.6% |
| 5-Year IRR | 13.6% |
📈 Home Appreciation
| 1-Year | +18.2% ▲ |
| 3-Year CAGR | +9.2% ▲ |
| 5-Year CAGR | +11.0% ▲ |
| 10-Year CAGR | N/A |
🏠 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 (2.6%). 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 56127
Population: 478
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 Dunnell, MN a good place for real estate investing?
Our data puts Dunnell, MN at 3.0/5 for investability. Home prices of $362K and rents around $1,215/mo create a solid backdrop for investor activity.
What kind of vacancy should I budget for in Dunnell, MN?
Vacancy in Dunnell, MN is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $1,215/mo.
Are rents high in Dunnell, MN?
Rent in Dunnell, MN is around $1,215/mo. The resulting rent-to-value relationship with $362K pricing is reasonable for most investor models.
How do landlord-tenant laws work in Dunnell, MN?
Dunnell, MN falls under MN landlord-tenant law, which is balanced. That backdrop makes day-to-day property management reasonable.
Where do home prices stand in Dunnell, MN?
The median home value in Dunnell, MN is roughly $362K. That puts it reasonable relative to the MN statewide average.
You know 56127 now. You don’t know where it ranks.
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How 56127 ranks in Fairmont, MN
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