Real Estate Investing in Richmond, Minnesota (56368)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56368 (Richmond, 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: 26.8% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 33.0 — 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 Richmond, MN (56368)?
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Market Analysis: 56368 Richmond
ZIP 56368 in Richmond, MN carries a notable set of headwinds. Home values near $371K and rents of $936/mo sit inside a market where underwriting has to be tight.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $371K asset, 56368 is the wrong submarket. If the plan prices in friction, the yield can still work.
Turning to rents, 56368 offers a low basis, the region around Richmond has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Demographically, 56368 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
The 56368 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 Richmond:
Property Strategy for 56368
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $310,783 | $1,040 | 2.4% | +7.3% | $155,391 |
| 3BR | $397,360 | $1,360 | 2.5% | +7.1% | $132,453 |
| 4BR | $484,870 | $1,620 | 2.4% | +7.9% | $121,218 |
| 5BR | $558,263 | — | — | +6.4% | $111,653 |
Market Trends
Home Value History (with trend line)
📊 How Does 56368 Compare?
| Metric | 56368 | Richmond | St. Cloud, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $370,635 | $370,635 | N/A | $340,597 |
| 5-Year CAGR | 4.5% | 4.5% | N/A | 4.9% |
| Avg Rent | $936 | $936 | 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 56368 (Richmond, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $370,635 |
| Monthly Rent | $936 |
| Price-to-Rent | 33.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.0% |
| Cap Rate | 2.0% |
| 5-Year IRR | 6.5% |
📈 Home Appreciation
| 1-Year | +2.2% ▲ |
| 3-Year CAGR | +3.1% ▲ |
| 5-Year CAGR | +4.5% ▲ |
| 10-Year CAGR | +6.5% ▲ |
🏠 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 56368
Population: 4,162
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 56368
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.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
How do home values compare in Richmond, MN?
Richmond, MN home values average about $371K. That price point suits investors targeting rentals with $936/mo in monthly income.
Can owner-occupants cash flow in Richmond, MN?
For house hackers, Richmond, MN is a challenging. The $936/mo rent on a unit helps defray the mortgage on a $371K property.
How strong is tenant demand in Richmond, MN?
The renter base in Richmond, MN is reasonable for the $936/mo price point. Screening well and pricing to market typically yields even-keeled tenants.
Do rentals sit vacant long in Richmond, MN?
Vacancy in Richmond, MN is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $936/mo.
Is Richmond, MN a friendly market for rental owners?
The landlord environment in Richmond, MN is balanced. Statewide rules shape most day-to-day operations for rental owners.
You know 56368 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 56368 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.
How 56368 ranks in St. Cloud, MN
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