Real Estate Investing in Sacred Heart, Minnesota (56285)

Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.

Renville County • Population: 1,047 • Data updated: September 2026

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Should you buy in 56285 (Sacred Heart, MN)? Our answer, based on the numbers below.

🏠 For Homebuyers
MIXED
Grade C (68/100)

Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.

📈 For Investors
MIXED
3.0 / 5 (47/100)

A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.

⚠️ Risks to Know
1 flag
  • High vacancy: 13.2% 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 Sacred Heart, MN (56285)?

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3.0/ 5

Investability

Overall investment appeal

3.0/ 5

Appreciation

Long-term value growth

3.0/ 5

Cashflow ROI

Rental yield potential

Avg Home Value $188,189
Avg Monthly Rent $873
1% Rule ✗ Does Not Meet
Median Income $76,250
% Renters 14.3%

Market Analysis: 56285 Sacred Heart

Looking more closely, ZIP 56285 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $188K median. It rewards specialists, not generalists.

Looking more closely, the numbers look inviting — $188K purchase price, 0.0% nominal cap — the work to hit that pro forma in 56285 is substantial and deserves full respect.

The gap between 56285 and stronger Sacred Heart ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.

The demographic picture in 56285 includes headwinds that any investor should price in. Income distribution skews lower than Sacred Heart averages, and tenant stability requires active management.

Strategically, 56285 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.

Explore the Data — Click a Tab Below
🏦 Current 30-yr Fixed Mortgage Rate: 6.76% as of Sep 10 Source: Freddie Mac PMMS

Here's what matters if you're considering buying a home in Sacred Heart:

B Good
Buy Confidence Score: 77/100
Affordability
25/25
Appreciation
22/25
Stability
7/20
Timing
8/15
Rental backup
15/15
Affordability
Affordable
Homes cost 2.5× the median income
Value Trend
Rising (+11.0%)
How home values changed in the past year
Rental Backup
Strong
Could rent for $873/mo if you need to move
Market Conditions
BALANCED
Even conditions for buyers and sellers
Bottom Line: Mixed signals in this market. Research specific properties carefully and be prepared to negotiate.

Market Trends

Home Value History (with trend line)

$197K$180K$162K$144K$126K$108KFeb 2018May 2022Jul 2026

📊 How Does 56285 Compare?

Metric 56285 Sacred Heart Minnesota
Home Value $188,189 $188,189 $340,597
5-Year CAGR 5.1% 5.1% 4.9%
Avg Rent $873 $873 -
Cap Rate 3.6% 3.6% -
💡 Why Invest in 56285? Click to expand

With a 3/5 investability rating, this ZIP shows solid fundamentals for buy-and-hold investors.

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Landlord Ground Truth

Real numbers from people who own or manage rentals in ZIP 56285 (Sacred Heart, MN). Anonymous, moderated, never written by AI.

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Investability
Good
Cap Rate
3.6%
Low
5yr Growth
+5.1%
Moderate

📊 Market Snapshot

Home Value $188,189
Monthly Rent $873
Price-to-Rent 18.0:1
1% Rule ✗ Fails

💰 Return Metrics

Gross Yield 5.6%
Cap Rate 3.6%
5-Year IRR 8.7%

📈 Home Appreciation

1-Year +11.0% ▲
3-Year CAGR +3.4% ▲
5-Year CAGR +5.1% ▲
10-Year CAGR N/A

🏠 Rent Trends

1-Year N/A
3-Year CAGR N/A
5-Year CAGR N/A
Negative Leverage — IRR / Tax Play Cap Rate: 3.6%  |  30yr Rate: 6.8%
Leverage reduces cash returns at current rates.

The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.6%). 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.

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⚠️ Risk Signals

Composite view of factors that can impact a ZIP's stability and your downside risk.

Vacancy
13.2%
Moderate risk
Landlord Climate
3.0/5
Balanced
Value Trend (5yr)
+5.1%
Stable
Eviction process: Slow Rent control: Moderate

Demographics in 56285

Population: 1,047

💰 Median Household Income
$76,250
This area
$76,250
State
$77,168
USA
$74,580
🏠 Renter Occupied
14.3%
This area
14.3%
State
18.9%
USA
34.0%
💼 Unemployment Rate
1.6%
This area
1.6%
State
-3.2%
USA
3.7%
🎓 College Educated
22.4%
This area
22.4%
State
20.0%
USA
33.7%
👤 Median Age
50.4 years
This area
50.4 years
State
37.2 years
USA
38.9 years
🏚️ Vacancy Rate
13.2%
This area
13.2%
State
17.0%
USA
10.5%
👥 Population by Ethnicity
White 91.7%
Other/Mixed 6.9%
Hispanic/Latino 6.2%
Asian 1.4%
👶 Under 18
23.2%
This area
23.2%
USA
22.0%
👴 65 and Over
16.9%
This area
16.9%
USA
17.3%
📊 Poverty Rate
7.5%
This area
7.5%
USA
11.5%

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

1 Nearby 1,732 Off-Campus Students
C+
Minnesota West Community and Technical College
3,438 students · 10.6 mi

Investor Insight: With 1,732 students living off-campus nearby, this area has strong rental demand from the college population.

Frequently Asked Questions

How strong is Sacred Heart, MN for real estate investors?

Investors tracking Sacred Heart, MN will find a 3.0/5 rating supported by $188K median home values and $873/mo rents. That profile suits long-term holders targeting consistent returns.

What are rental rates like in Sacred Heart, MN?

Sacred Heart, MN rentals go for roughly $873/mo a month. That puts gross yield in solid territory relative to $188K acquisition costs.

What are home prices like in Sacred Heart, MN?

In Sacred Heart, MN the median home value sits at $188K. Against the broader MN market, that reads as reasonable for most investors.

Which real estate strategy fits Sacred Heart, MN?

Sacred Heart, MN investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($188K prices, $873/mo rents) make it a reasonable choice.

Is Sacred Heart, MN a friendly market for rental owners?

Rental owners in Sacred Heart, MN deal with a balanced legal framework. Most standard eviction processes run on reasonable timelines.

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