Real Estate Investing in Hillman, Minnesota (56338)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56338 (Hillman, 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: 45.1% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 28.5 — 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 Hillman, MN (56338)?
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Market Analysis: 56338 Hillman
ZIP 56338 inside Morrison County looks affordable on the surface — median value of $381K — but the discount exists for reasons that a careful buyer should understand before committing.
The 56338 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Put differently, 56338 offers a low basis, the region around Hillman has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Who lives in 56338 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
Strategically, 56338 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 Hillman:
Property Strategy for 56338
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $330,937 | $1,240 | 2.7% | +9.0% | $165,469 |
| 3BR | $397,308 | $1,700 | 3.1% | +9.2% | $132,436 |
| 4BR | $460,366 | $1,840 | 2.9% | +9.3% | $115,091 |
Market Trends
Home Value History (with trend line)
📊 How Does 56338 Compare?
| Metric | 56338 | Hillman | Minnesota |
|---|---|---|---|
| Home Value | $381,061 | $381,061 | $340,597 |
| 5-Year CAGR | 7.4% | 7.4% | 4.9% |
| Avg Rent | $1,116 | $1,116 | - |
| Cap Rate | 2.3% | 2.3% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56338 (Hillman, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $381,061 |
| Monthly Rent | $1,116 |
| Price-to-Rent | 28.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.5% |
| Cap Rate | 2.3% |
| 5-Year IRR | 9.7% |
📈 Home Appreciation
| 1-Year | +6.6% ▲ |
| 3-Year CAGR | +5.5% ▲ |
| 5-Year CAGR | +7.4% ▲ |
| 10-Year CAGR | +7.4% ▲ |
🏠 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 (2.3%). 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 56338
Population: 1,579
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
Which investment style suits Hillman, MN?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Hillman, MN. The numbers - $381K homes against $1,116/mo rents - support that play.
How much does a house cost in Hillman, MN?
Typical homes in Hillman, MN go for around $381K. The 5-year CAGR of 0.0% steady price movement.
Is Hillman in MN worth investing in?
Yes - Hillman, MN a 3.0/5 investability score. With $381K home prices against $1,116/mo monthly rent, the market delivers a reasonable entry point for new investors.
Is Hillman, MN suited for a house hack?
The house hack math a challenging in Hillman, MN. Owner-occupant buyers benefit from the $1,116/mo rents and $381K home values.
How high is vacancy risk in Hillman, MN?
Expect elevated vacancy in Hillman, MN. Rents at $1,116/mo are absorbed by the tenant base without meaningful lag.
You know 56338 now. You don’t know where it ranks.
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