Real Estate Investing in Deerwood, Minnesota (56444)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56444 (Deerwood, 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: 47.8% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 39.8 — 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 Deerwood, MN (56444)?
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Market Analysis: 56444 Deerwood
The 56444 ZIP in Deerwood, MN is a local-operator market. Outside capital chasing a $439K entry has to pair deep knowledge with the discount.
Rent of $918/mo on a $439K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 56444 sits below the stated 0.0% once reality is priced in.
From an investor standpoint, 56444 offers a low basis, the region around Deerwood has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Resident income in 56444 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 56444 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 Deerwood:
Property Strategy for 56444
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $364,000 | $1,020 | 2.0% | +9.4% | $182,000 |
| 3BR | $430,106 | $1,230 | 2.1% | +8.4% | $143,369 |
| 4BR | $555,026 | $1,430 | 1.9% | +8.2% | $138,756 |
Market Trends
Home Value History (with trend line)
📊 How Does 56444 Compare?
| Metric | 56444 | Deerwood | Brainerd, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $438,634 | $438,634 | N/A | $340,597 |
| 5-Year CAGR | 5.7% | 5.7% | N/A | 4.9% |
| Avg Rent | $918 | $918 | N/A | - |
| Cap Rate | 1.6% | 1.6% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56444 (Deerwood, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $438,634 |
| Monthly Rent | $918 |
| Price-to-Rent | 39.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.5% |
| Cap Rate | 1.6% |
| 5-Year IRR | 7.4% |
📈 Home Appreciation
| 1-Year | +5.1% ▲ |
| 3-Year CAGR | +1.8% ▲ |
| 5-Year CAGR | +5.7% ▲ |
| 10-Year CAGR | +5.1% ▲ |
🏠 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 (1.6%). 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 56444
Population: 3,385
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
Should investors worry about vacancy in Deerwood, MN?
Occupancy in Deerwood, MN runs reliable with elevated vacancy. Well-priced units at $918/mo lease on reasonable timelines.
How strong is tenant demand in Deerwood, MN?
Deerwood, MN offers a stable renter base at the $918/mo rent level. Tenant turnover is reasonable for well-managed properties.
What is the investability score for Deerwood, MN?
Investors tracking Deerwood, MN will find a 3.0/5 rating supported by $439K median home values and $918/mo rents. That profile suits long-term holders targeting consistent returns.
What is the best play in Deerwood, MN?
Most investors in Deerwood, MN run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
What price range are homes in Deerwood, MN?
Deerwood, MN median home values land near $439K. That is reasonable territory for investors looking at $918/mo-per-month rentals.
You know 56444 now. You don’t know where it ranks.
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How 56444 ranks in Brainerd, MN
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