Real Estate Investing in Hills, Minnesota (56138)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56138 (Hills, 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.
- Elevated vacancy: 10.1% 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 Hills, MN (56138)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 56138 Hills
ZIP 56138 in Hills, MN carries a impressive set of headwinds. Home values near $243K and rents of $981/mo sit inside a market where underwriting has to be tight.
For an experienced owner, 56138 can be a an appealing option for hunting ground — but the discount at $243K reflects genuine risk that outside investors often underestimate.
Regionally, 56138 sits on the difficult end of the MN spectrum. The worth a close look for read — for disciplined operators — is that pricing reflects the difficulty.
A resilient renter share of 25% in 56138 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
New investors are better served looking at Hills's stable or hybrid ZIPs before stepping into 56138. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Hills:
Market Trends
Home Value History (with trend line)
📊 How Does 56138 Compare?
| Metric | 56138 | Hills | Minnesota |
|---|---|---|---|
| Home Value | $242,814 | $242,814 | $340,597 |
| 5-Year CAGR | 6.7% | 6.7% | 4.9% |
| Avg Rent | $981 | $981 | - |
| Cap Rate | 3.2% | 3.2% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56138 (Hills, MN). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 56138 (Hills, MN)?
~25 seconds · no account needed · your report is anonymous
📊 Market Snapshot
| Home Value | $242,814 |
| Monthly Rent | $981 |
| Price-to-Rent | 20.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.9% |
| Cap Rate | 3.2% |
| 5-Year IRR | 9.8% |
📈 Home Appreciation
| 1-Year | +8.1% ▲ |
| 3-Year CAGR | +5.8% ▲ |
| 5-Year CAGR | +6.7% ▲ |
| 10-Year CAGR | +7.3% ▲ |
🏠 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 (3.2%). 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 56138
Population: 1,046
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 56138
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
What kind of market is Hills, MN for investors?
Hills, MN rates 3.0/5 for investability. With median values at $243K and rents near $981/mo, the market offers reasonable fundamentals for rental investors.
What do landlords charge for rent in Hills, MN?
Investors in Hills, MN typically see rents near $981/mo per month against $243K home values - a solid setup for rental cash flow.
Is rental property easy to operate in Hills, MN?
MN law balanced for landlords, and Hills inherits those rules. Investors should still review local ordinances for rental licensing.
How tight is the rental market in Hills, MN?
Vacancy in Hills, MN is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $981/mo.
How do experienced investors play Hills, MN?
Hills, MN investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($243K prices, $981/mo rents) make it a reasonable choice.
You know 56138 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 56138 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
AI Market Advisor
Ask questions about investing in 56138 (Hills)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 56138 (Hills, MN).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.