Real Estate Investing in Tracy, Minnesota (56175)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56175 (Tracy, MN)? Our answer, based on the numbers below.
Solid choice — stable market with a reasonable entry point and good rental backup if you ever need to move.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 22.0% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Tracy, MN (56175)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 56175 Tracy
ZIP 56175 inside Lyon County looks affordable on the surface — median value of $172K — but the discount exists for reasons that a careful buyer should understand before committing.
On the rental side, the numbers look inviting — $172K purchase price, 0.0% nominal cap — the work to hit that pro forma in 56175 is substantial and deserves full respect.
ZIP 56175's metrics run below Lyon County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
The 56175 ZIP's population of 2,791 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that reflects the need for careful underwriting.
Distressed ZIPs reward experience. impressive returns are possible in 56175, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Tracy:
Market Trends
Home Value History (with trend line)
📊 How Does 56175 Compare?
| Metric | 56175 | Tracy | Marshall, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $171,524 | $171,524 | N/A | $340,597 |
| 5-Year CAGR | 4.1% | 4.1% | N/A | 4.9% |
| Avg Rent | $873 | $873 | N/A | - |
| Cap Rate | 4.0% | 4.0% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56175 (Tracy, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $171,524 |
| Monthly Rent | $873 |
| Price-to-Rent | 16.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.1% |
| Cap Rate | 4.0% |
| 5-Year IRR | 8.1% |
📈 Home Appreciation
| 1-Year | +12.2% ▲ |
| 3-Year CAGR | +3.4% ▲ |
| 5-Year CAGR | +4.1% ▲ |
| 10-Year CAGR | +3.8% ▲ |
🏠 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 (4.0%). 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 56175
Population: 2,791
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 56175
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.
🎓 Nearby Colleges & Universities
Investor Insight: With 563 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How much is rent in Tracy, MN?
Average rent in Tracy, MN is approximately $873/mo per month. Against $172K home values that yields a reasonable rent-to-price ratio.
What is the average home sale price in Tracy, MN?
Tracy, MN home values average about $172K. That price point suits investors targeting rentals with $873/mo in monthly income.
What kind of vacancy should I budget for in Tracy, MN?
Expect elevated vacancy in Tracy, MN. Rents at $873/mo are absorbed by the tenant base without meaningful lag.
Is rental property easy to operate in Tracy, MN?
MN law balanced for landlords, and Tracy inherits those rules. Investors should still review local ordinances for rental licensing.
Is Tracy, MN a good market for buy-and-hold investors?
Tracy, MN rates 3.0/5 for investability. With median values at $172K and rents near $873/mo, the market offers reasonable fundamentals for rental investors.
You know 56175 now. You don’t know where it ranks.
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How 56175 ranks in Marshall, MN
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