Real Estate Investing in Clarkfield, Minnesota (56223)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56223 (Clarkfield, 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.
- High vacancy: 14.9% 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 Clarkfield, MN (56223)?
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Market Analysis: 56223 Clarkfield
The 56223 ZIP in Clarkfield, MN is a local-operator market. Outside capital chasing a $157K entry has to pair deep knowledge with the discount.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $157K asset, 56223 is the wrong submarket. If the plan prices in friction, the yield can still work.
Regionally, 56223 sits on the difficult end of the MN spectrum. The an appealing option for read — for disciplined operators — is that pricing reflects the difficulty.
Demographically, 56223 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.
New investors are better served looking at Clarkfield's stable or hybrid ZIPs before stepping into 56223. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Clarkfield:
Market Trends
Home Value History (with trend line)
📊 How Does 56223 Compare?
| Metric | 56223 | Clarkfield | Minnesota |
|---|---|---|---|
| Home Value | $156,571 | $156,571 | $340,597 |
| 5-Year CAGR | 6.0% | 6.0% | 4.9% |
| Avg Rent | $1,008 | $1,008 | - |
| Cap Rate | 5.0% | 5.0% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56223 (Clarkfield, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $156,571 |
| Monthly Rent | $1,008 |
| Price-to-Rent | 12.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.7% |
| Cap Rate | 5.0% |
| 5-Year IRR | 11.0% |
📈 Home Appreciation
| 1-Year | +10.0% ▲ |
| 3-Year CAGR | +5.4% ▲ |
| 5-Year CAGR | +6.0% ▲ |
| 10-Year CAGR | +7.1% ▲ |
🏠 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 (5.0%). 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 56223
Population: 1,403
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
Investor Insight: With 1,732 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is vacancy a concern in Clarkfield, MN?
Occupancy in Clarkfield, MN runs reliable with elevated vacancy. Well-priced units at $1,008/mo lease on reasonable timelines.
What is the best play in Clarkfield, MN?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Clarkfield, MN. The numbers - $157K homes against $1,008/mo rents - support that play.
What are rental rates like in Clarkfield, MN?
Rents in Clarkfield, MN run near $1,008/mo. Compared with median home prices of $157K that produces solid gross yields for typical rentals.
Does a duplex house hack pencil in Clarkfield, MN?
House hacking works a challenging in Clarkfield, MN. Rents of $1,008/mo against $157K acquisition make the strategy solid for owner-occupants.
Is Clarkfield, MN a smart market for rental property?
Yes - Clarkfield, MN a 3.0/5 investability score. With $157K home prices against $1,008/mo monthly rent, the market delivers a reasonable entry point for new investors.
You know 56223 now. You don’t know where it ranks.
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