Real Estate Investing in Minneota, Minnesota (56264)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56264 (Minneota, MN)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 12.5% 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 Minneota, MN (56264)?
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Market Analysis: 56264 Minneota
This part of Lyon County is not an easy win. The 56264 ZIP records softness in key indicators, and the playbook that works in cleaner markets often stalls here.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $203K asset, 56264 is the wrong submarket. If the plan prices in friction, the yield can still work.
In the broader MN picture, 56264 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
From an investor standpoint, 2,185 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
The 56264 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 Minneota:
Market Trends
Home Value History (with trend line)
📊 How Does 56264 Compare?
| Metric | 56264 | Minneota | Marshall, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $203,333 | $203,333 | N/A | $340,597 |
| 5-Year CAGR | 4.7% | 4.7% | N/A | 4.9% |
| Avg Rent | $873 | $873 | N/A | - |
| Cap Rate | 3.4% | 3.4% | - | - |
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 56264 (Minneota, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $203,333 |
| Monthly Rent | $873 |
| Price-to-Rent | 19.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.2% |
| Cap Rate | 3.4% |
| 5-Year IRR | 8.0% |
📈 Home Appreciation
| 1-Year | +13.5% ▲ |
| 3-Year CAGR | +4.4% ▲ |
| 5-Year CAGR | +4.7% ▲ |
| 10-Year CAGR | +3.2% ▲ |
🏠 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 (3.4%). 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 56264
Population: 2,185
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 56264
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 Minneota, MN?
Rental rates in Minneota, MN average $873/mo. Tenant demand and $203K home values make the yield look reasonable by investor standards.
Do rentals sit vacant long in Minneota, MN?
Minneota, MN vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
What kind of market is Minneota, MN for investors?
Minneota, MN scores 3.0/5 for investability. Home values sit at $203K and rents near $873/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
Can I house hack in Minneota, MN?
House hacking in Minneota, MN is a challenging. With home values around $203K and rents at $873/mo, owner-occupants can offset a meaningful share of PITI.
What is the typical renter like in Minneota, MN?
The renter base in Minneota, MN is reasonable for the $873/mo price point. Screening well and pricing to market typically yields measured tenants.
You know 56264 now. You don’t know where it ranks.
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How 56264 ranks in Marshall, MN
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