Real Estate Investing in Callaway, Minnesota (56521)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56521 (Callaway, 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: 12.5% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 25.3 — hard to cash-flow at these prices.
• 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 Callaway, MN (56521)?
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Market Analysis: 56521 Callaway
This part of Becker County is not an easy win. The 56521 ZIP reflects softness in key indicators, and the playbook that works in cleaner markets often stalls here.
Distressed markets are won on execution, not on spreadsheets. ZIP 56521 records the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
In the broader MN picture, 56521 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
Resident income in 56521 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
The 56521 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 Callaway:
Market Trends
Home Value History (with trend line)
📊 How Does 56521 Compare?
| Metric | 56521 | Callaway | Minnesota |
|---|---|---|---|
| Home Value | $264,603 | $264,603 | $340,597 |
| 5-Year CAGR | 6.8% | 6.8% | 4.9% |
| Avg Rent | $873 | $873 | - |
| Cap Rate | 2.6% | 2.6% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56521 (Callaway, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $264,603 |
| Monthly Rent | $873 |
| Price-to-Rent | 25.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.0% |
| Cap Rate | 2.6% |
| 5-Year IRR | 9.4% |
📈 Home Appreciation
| 1-Year | +11.4% ▲ |
| 3-Year CAGR | +5.6% ▲ |
| 5-Year CAGR | +6.8% ▲ |
| 10-Year CAGR | +6.7% ▲ |
🏠 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 (2.6%). 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 56521
Population: 718
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 does a house cost in Callaway, MN?
Median home price in Callaway, MN is near $265K, with a 5-year CAGR of 0.0%. Prices have been predictable and supportive of buy-and-hold strategies.
What is the renter demographic in Callaway, MN?
Tenant demand in Callaway, MN is solid. The local workforce $873/mo rents across most rental classes.
Is Callaway, MN good for house hacking?
Callaway, MN offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $873/mo rent level.
Is MN a landlord-friendly state?
MN law balanced for landlords, and Callaway inherits those rules. Investors should still review local ordinances for rental licensing.
Is Callaway, MN better for rentals, flips, or BRRRR?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Callaway, MN. The numbers - $265K homes against $873/mo rents - support that play.
You know 56521 now. You don’t know where it ranks.
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