Real Estate Investing in Sunburg, Minnesota (56289)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56289 (Sunburg, MN)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 27.0% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 35.6 — hard to cash-flow at these prices.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Sunburg, MN (56289)?
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Market Analysis: 56289 Sunburg
ZIP 56289 inside Kandiyohi County looks affordable on the surface — median value of $372K — but the discount exists for reasons that a careful buyer should understand before committing.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 56289 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
In the broader MN picture, 56289 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
A impressive renter share of 12% in 56289 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Strategically, 56289 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 Sunburg:
Market Trends
Home Value History (with trend line)
📊 How Does 56289 Compare?
| Metric | 56289 | Sunburg | Willmar, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $372,491 | $372,491 | N/A | $340,597 |
| 5-Year CAGR | 7.6% | 7.6% | N/A | 4.9% |
| Avg Rent | $873 | $873 | N/A | - |
| Cap Rate | 1.8% | 1.8% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56289 (Sunburg, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $372,491 |
| Monthly Rent | $873 |
| Price-to-Rent | 35.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.8% |
| Cap Rate | 1.8% |
| 5-Year IRR | 9.5% |
📈 Home Appreciation
| 1-Year | +12.0% ▲ |
| 3-Year CAGR | +7.5% ▲ |
| 5-Year CAGR | +7.6% ▲ |
| 10-Year CAGR | N/A |
🏠 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 (1.8%). 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 56289
Population: 597
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
Frequently Asked Questions
How much rent can I charge in Sunburg, MN?
Expect rents around $873/mo per month in Sunburg, MN. With home values at $372K, the yield math works out to reasonable levels for rental investors.
Is MN a landlord-friendly state?
Sunburg, MN operates under MN law, which is balanced overall for landlords. Expect measured treatment in typical lease and eviction cases.
Which investment style suits Sunburg, MN?
The best-fit strategy in Sunburg, MN is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
Does a duplex house hack pencil in Sunburg, MN?
The house hack math a challenging in Sunburg, MN. Owner-occupant buyers benefit from the $873/mo rents and $372K home values.
What is the tenant pool like in Sunburg, MN?
The renter base in Sunburg, MN is reasonable for the $873/mo price point. Screening well and pricing to market typically yields predictable tenants.
You know 56289 now. You don’t know where it ranks.
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How 56289 ranks in Willmar, MN
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