Real Estate Investing in Parkers Prairie, Minnesota (56361)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56361 (Parkers Prairie, 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: 22.1% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 26.9 — 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 Parkers Prairie, MN (56361)?
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Market Analysis: 56361 Parkers Prairie
This part of Otter Tail is not an easy win. The 56361 ZIP comes in at softness in key indicators, and the playbook that works in cleaner markets often stalls here.
Rent of $873/mo on a $282K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 56361 sits below the stated 0.0% once reality is priced in.
Nearby ZIPs in Parkers Prairie have seen price recovery that 56361 has not matched. Otter Tail data supports the view that the spread is structural rather than temporary.
From a cash-flow lens, 2,590 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
The 56361 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 Parkers Prairie:
Market Trends
Home Value History (with trend line)
📊 How Does 56361 Compare?
| Metric | 56361 | Parkers Prairie | Minnesota |
|---|---|---|---|
| Home Value | $281,659 | $281,659 | $340,597 |
| 5-Year CAGR | 6.0% | 6.0% | 4.9% |
| Avg Rent | $873 | $873 | - |
| Cap Rate | 2.4% | 2.4% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56361 (Parkers Prairie, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $281,659 |
| Monthly Rent | $873 |
| Price-to-Rent | 26.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.7% |
| Cap Rate | 2.4% |
| 5-Year IRR | 8.4% |
📈 Home Appreciation
| 1-Year | +6.7% ▲ |
| 3-Year CAGR | +4.9% ▲ |
| 5-Year CAGR | +6.0% ▲ |
| 10-Year CAGR | +6.9% ▲ |
🏠 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 (2.4%). 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 56361
Population: 2,590
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
🎓 Schools in 56361
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
Frequently Asked Questions
Are homes affordable in Parkers Prairie, MN?
Expect median prices around $282K in Parkers Prairie, MN. The market has run at a 0.0% 5-year CAGR, so entry costs have been steady.
What is it like being a landlord in Parkers Prairie, MN?
The landlord environment in Parkers Prairie, MN is balanced. Statewide rules shape most day-to-day operations for rental owners.
What is the rental occupancy rate in Parkers Prairie, MN?
Expect elevated vacancy in Parkers Prairie, MN. Rents at $873/mo are absorbed by the tenant base without meaningful lag.
Does house hacking work in Parkers Prairie, MN?
For house hackers, Parkers Prairie, MN is a challenging. The $873/mo rent on a unit helps defray the mortgage on a $282K property.
How strong is the working-renter base in Parkers Prairie, MN?
Tenant quality in Parkers Prairie, MN ranks as solid. Landlords generally report reliable occupancy at market rents of $873/mo.
You know 56361 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 56361 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
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