Real Estate Investing in Ormsby, Minnesota (56162)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56162 (Ormsby, MN)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- High vacancy: 26.1% 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 Ormsby, MN (56162)?
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Market Analysis: 56162 Ormsby
This part of Martin County is not an easy win. The 56162 ZIP records softness in key indicators, and the playbook that works in cleaner markets often stalls here.
The investment case in 56162 is healthy only for operators who understand what they are buying. A $266K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
In the broader MN picture, 56162 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
Resident income in 56162 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
The 56162 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 Ormsby:
Market Trends
Home Value History (with trend line)
📊 How Does 56162 Compare?
| Metric | 56162 | Ormsby | Fairmont, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $265,598 | $265,598 | N/A | $340,597 |
| 5-Year CAGR | N/A | N/A | N/A | 4.9% |
| Avg Rent | $900 | $900 | 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 56162 (Ormsby, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $265,598 |
| Monthly Rent | $900 |
| Price-to-Rent | 24.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.1% |
| Cap Rate | 2.6% |
| 5-Year IRR | 11.8% |
📈 Home Appreciation
| 1-Year | +14.5% ▲ |
| 3-Year CAGR | +9.2% ▲ |
| 5-Year CAGR | N/A |
| 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 56162
Population: 263
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
What is the median home value in Ormsby, MN?
Ormsby, MN home values average about $266K. That price point suits investors targeting rentals with $900/mo in monthly income.
How strong is tenant demand in Ormsby, MN?
The tenant pool in Ormsby, MN is solid, supported by local employment and population fundamentals. Rents of $900/mo are well-absorbed by the market.
What kind of vacancy should I budget for in Ormsby, MN?
Expect elevated vacancy in Ormsby, MN. Rents at $900/mo are absorbed by the tenant base without meaningful lag.
Where do rents currently stand in Ormsby, MN?
Rent in Ormsby, MN is around $900/mo. The resulting rent-to-value relationship with $266K pricing is reasonable for most investor models.
Are eviction rules reasonable in Ormsby, MN?
Ormsby, MN operates under MN law, which is balanced overall for landlords. Expect steady treatment in typical lease and eviction cases.
You know 56162 now. You don’t know where it ranks.
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How 56162 ranks in Fairmont, MN
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