Real Estate Investing in New London, Minnesota (56273)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56273 (New London, 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: 20.1% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 30.7 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in New London, MN (56273)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 56273 New London
The 56273 ZIP in New London, MN is a local-operator market. Outside capital chasing a $345K entry has to pair deep knowledge with the discount.
Rent of $936/mo on a $345K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 56273 sits below the stated 0.0% once reality is priced in.
In the broader MN picture, 56273 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
A notable renter share of 13% in 56273 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Strategically, 56273 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in New London:
Property Strategy for 56273
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 3BR | $319,710 | $1,450 | 3.3% | +7.3% | $106,570 |
| 4BR | $393,474 | $1,740 | 3.2% | +6.9% | $98,369 |
Market Trends
Home Value History (with trend line)
📊 How Does 56273 Compare?
| Metric | 56273 | New London | Willmar, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $344,932 | $344,932 | N/A | $340,597 |
| 5-Year CAGR | 5.9% | 5.9% | N/A | 4.9% |
| Avg Rent | $936 | $936 | N/A | - |
| Cap Rate | 2.1% | 2.1% | - | - |
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 56273 (New London, MN). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 56273 (New London, MN)?
~25 seconds · no account needed · your report is anonymous
📊 Market Snapshot
| Home Value | $344,932 |
| Monthly Rent | $936 |
| Price-to-Rent | 30.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.3% |
| Cap Rate | 2.1% |
| 5-Year IRR | 8.0% |
📈 Home Appreciation
| 1-Year | +9.1% ▲ |
| 3-Year CAGR | +5.4% ▲ |
| 5-Year CAGR | +5.9% ▲ |
| 10-Year CAGR | +6.3% ▲ |
🏠 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 (2.1%). 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 56273
Population: 5,050
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 56273
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 1,690 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is New London, MN a good place for real estate investing?
New London, MN rates 3.0/5 for investability. With median values at $345K and rents near $936/mo, the market offers reasonable fundamentals for rental investors.
How qualified is the tenant pool in New London, MN?
New London, MN offers a consistent renter base at the $936/mo rent level. Tenant turnover is reasonable for well-managed properties.
Which investment style suits New London, MN?
For New London, MN, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
Do rentals sit vacant long in New London, MN?
New London, MN sees elevated vacancy, which is reasonable relative to the broader MN rental market.
Is New London, MN a good market for FHA house hackers?
For house hackers, New London, MN is a challenging. The $936/mo rent on a unit helps defray the mortgage on a $345K property.
You know 56273 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 56273 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.
How 56273 ranks in Willmar, MN
Every ZIP in this metro, ranked. Free.
AI Market Advisor
Ask questions about investing in 56273 (New London)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 56273 (New London, MN).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.