Real Estate Investing in McGrath, Minnesota (56350)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56350 (McGrath, 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: 56.9% of homes vacant — above national norms.
- Lower household income: $38,250 median — tenant affordability is tighter.
• 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 McGrath, MN (56350)?
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Market Analysis: 56350 McGrath
ZIP 56350 inside Aitkin County looks affordable on the surface — median value of $210K — but the discount exists for reasons that a careful buyer should understand before committing.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $210K asset, 56350 is the wrong submarket. If the plan prices in friction, the yield can still work.
ZIP 56350's metrics run below Aitkin County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Resident income in 56350 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
The right play in 56350 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in McGrath:
Market Trends
Home Value History (with trend line)
📊 How Does 56350 Compare?
| Metric | 56350 | McGrath | Minnesota |
|---|---|---|---|
| Home Value | $210,398 | $210,398 | $340,597 |
| 5-Year CAGR | 4.6% | 4.6% | 4.9% |
| Avg Rent | $954 | $954 | - |
| Cap Rate | 3.5% | 3.5% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56350 (McGrath, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $210,398 |
| Monthly Rent | $954 |
| Price-to-Rent | 18.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.4% |
| Cap Rate | 3.5% |
| 5-Year IRR | 8.2% |
📈 Home Appreciation
| 1-Year | +10.4% ▲ |
| 3-Year CAGR | +2.9% ▲ |
| 5-Year CAGR | +4.6% ▲ |
| 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 (3.5%). 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 56350
Population: 468
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 McGrath, MN?
Investors in McGrath, MN typically see rents near $954/mo per month against $210K home values - a solid setup for rental cash flow.
How deep is the rental pool in McGrath, MN?
McGrath, MN offers a reliable renter base at the $954/mo rent level. Tenant turnover is reasonable for well-managed properties.
Is housing expensive in McGrath, MN?
In McGrath, MN the median home value sits at $210K. Against the broader MN market, that reads as reasonable for most investors.
What does house hacking look like in McGrath, MN?
McGrath, MN offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $954/mo rent level.
Are landlord laws favorable in McGrath, MN?
MN law balanced for landlords, and McGrath inherits those rules. Investors should still review local ordinances for rental licensing.
You know 56350 now. You don’t know where it ranks.
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