Real Estate Investing in Dalton, Minnesota (56324)
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Should you buy in 56324 (Dalton, 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: 28.3% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 32.1 — 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 Dalton, MN (56324)?
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Market Analysis: 56324 Dalton
Investors eyeing 56324 need to respect the fundamentals at play. Home values of $336K come alongside slower price movement and elevated management overhead.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $336K asset, 56324 is the wrong submarket. If the plan prices in friction, the yield can still work.
The gap between 56324 and stronger Dalton ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Who lives in 56324 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
The 56324 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 Dalton:
Market Trends
Home Value History (with trend line)
📊 How Does 56324 Compare?
| Metric | 56324 | Dalton | Fergus Falls, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $335,938 | $335,938 | N/A | $340,597 |
| 5-Year CAGR | 5.9% | 5.9% | N/A | 4.9% |
| Avg Rent | $873 | $873 | N/A | - |
| Cap Rate | 2.0% | 2.0% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56324 (Dalton, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $335,938 |
| Monthly Rent | $873 |
| Price-to-Rent | 32.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.1% |
| Cap Rate | 2.0% |
| 5-Year IRR | 7.9% |
📈 Home Appreciation
| 1-Year | +11.9% ▲ |
| 3-Year CAGR | +6.1% ▲ |
| 5-Year CAGR | +5.9% ▲ |
| 10-Year CAGR | +6.8% ▲ |
🏠 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 (2.0%). 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 56324
Population: 1,116
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 2,669 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How much rent can I charge in Dalton, MN?
Expect rents around $873/mo per month in Dalton, MN. With home values at $336K, the yield math works out to reasonable levels for rental investors.
What kind of tenants rent in Dalton, MN?
Dalton, MN draws a measured base of working renters. Demand at the $873/mo rent level is reasonable for standard single-family and small multi rentals.
Is Dalton, MN a good market for buy-and-hold investors?
Yes - Dalton, MN a 3.0/5 investability score. With $336K home prices against $873/mo monthly rent, the market delivers a reasonable entry point for new investors.
How should investors approach Dalton, MN?
For Dalton, MN, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
How high is vacancy risk in Dalton, MN?
Expect elevated vacancy in Dalton, MN. Rents at $873/mo are absorbed by the tenant base without meaningful lag.
You know 56324 now. You don’t know where it ranks.
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How 56324 ranks in Fergus Falls, MN
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