Real Estate Investing in Fergus Falls, Minnesota (56537)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56537 (Fergus Falls, 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.
- Elevated vacancy: 11.6% vacancy may signal weakening demand.
What’s happening in Fergus Falls, MN (56537)?
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Market Analysis: 56537 Fergus Falls
Investors eyeing 56537 need to respect the fundamentals at play. Home values of $251K come alongside slower price movement and elevated management overhead.
Distressed markets are won on execution, not on spreadsheets. ZIP 56537 shows the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Nearby ZIPs in Fergus Falls have seen price recovery that 56537 has not matched. Otter Tail County data supports the view that the spread is structural rather than temporary.
The 56537 ZIP's population of 19,650 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that reports the need for careful underwriting.
Strategy in 56537 is an operator game, not a passive one. Stepping back, entry prices of $251K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Fergus Falls:
Property Strategy for 56537
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $176,050 | $990 | 4.0% | +6.6% | $88,025 |
| 3BR | $221,322 | $1,380 | 4.5% | +7.3% | $73,774 |
| 4BR | $284,914 | $1,440 | 3.6% | +7.0% | $71,228 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 56537 Compare?
| Metric | 56537 | Fergus Falls | Fergus Falls, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $250,983 | $250,983 | N/A | $340,597 |
| 5-Year CAGR | 5.2% | 5.2% | N/A | 4.9% |
| Avg Rent | $914 | $914 | N/A | - |
| Cap Rate | 2.8% | 2.8% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56537 (Fergus Falls, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $250,983 |
| Monthly Rent | $914 |
| Price-to-Rent | 22.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.4% |
| Cap Rate | 2.8% |
| 5-Year IRR | 8.1% |
📈 Home Appreciation
| 1-Year | +7.2% ▲ |
| 3-Year CAGR | +4.8% ▲ |
| 5-Year CAGR | +5.2% ▲ |
| 10-Year CAGR | +6.1% ▲ |
🏠 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 (2.8%). 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 56537
Population: 19,650
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 56537
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
Investor Insight: With 2,669 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is Fergus Falls, MN a good market for buy-and-hold investors?
Our data puts Fergus Falls, MN at 3.0/5 for investability. Home prices of $251K and rents around $914/mo create a solid backdrop for investor activity.
What is the rental occupancy rate in Fergus Falls, MN?
Occupancy in Fergus Falls, MN runs consistent with elevated vacancy. Well-priced units at $914/mo lease on reasonable timelines.
What approach is best for Fergus Falls, MN real estate?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Fergus Falls, MN. The numbers - $251K homes against $914/mo rents - support that play.
Is Fergus Falls, MN good for landlords?
For rental operators, Fergus Falls, MN rates as balanced. The regulatory environment standard buy-and-hold operations.
What price range are homes in Fergus Falls, MN?
Median home price in Fergus Falls, MN is near $251K, with a 5-year CAGR of 0.0%. Prices have been stable and supportive of buy-and-hold strategies.
You know 56537 now. You don’t know where it ranks.
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How 56537 ranks in Fergus Falls, MN
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