Real Estate Investing in Frazee, Minnesota (56544)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56544 (Frazee, 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: 22.5% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 33.1 — 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 Frazee, MN (56544)?
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Market Analysis: 56544 Frazee
Investors eyeing 56544 need to respect the fundamentals at play. Home values of $350K come alongside slower price movement and elevated management overhead.
Looking more closely, the numbers look inviting — $350K purchase price, 0.0% nominal cap — the work to hit that pro forma in 56544 is substantial and deserves full respect.
Nearby ZIPs in Frazee have seen price recovery that 56544 has not matched. Becker data supports the view that the spread is structural rather than temporary.
A robust renter share of 19% in 56544 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
The 56544 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 Frazee:
Property Strategy for 56544
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $281,651 | $980 | 2.5% | +7.5% | $140,826 |
| 3BR | $310,690 | $1,290 | 3.0% | +6.5% | $103,563 |
| 4BR | $393,789 | $1,410 | 2.6% | +6.5% | $98,447 |
Market Trends
Home Value History (with trend line)
📊 How Does 56544 Compare?
| Metric | 56544 | Frazee | Minnesota |
|---|---|---|---|
| Home Value | $350,046 | $350,046 | $340,597 |
| 5-Year CAGR | 5.5% | 5.5% | 4.9% |
| Avg Rent | $882 | $882 | - |
| Cap Rate | 2.0% | 2.0% | - |
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 56544 (Frazee, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $350,046 |
| Monthly Rent | $882 |
| Price-to-Rent | 33.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.0% |
| Cap Rate | 2.0% |
| 5-Year IRR | 7.4% |
📈 Home Appreciation
| 1-Year | +8.8% ▲ |
| 3-Year CAGR | +4.4% ▲ |
| 5-Year CAGR | +5.5% ▲ |
| 10-Year CAGR | +6.3% ▲ |
🏠 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 56544
Population: 5,609
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 56544
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
Which investment style suits Frazee, MN?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Frazee, MN. The numbers - $350K homes against $882/mo rents - support that play.
Where do home prices stand in Frazee, MN?
The median home value in Frazee, MN is roughly $350K. That puts it reasonable relative to the MN statewide average.
Does Frazee, MN make sense for an investment property?
Frazee, MN scores 3.0/5 for investability. Home values sit at $350K and rents near $882/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
Are there empty rentals in Frazee, MN?
Occupancy in Frazee, MN runs even-keeled with elevated vacancy. Well-priced units at $882/mo lease on reasonable timelines.
Is MN a landlord-friendly state?
Frazee, MN operates under MN law, which is balanced overall for landlords. Expect stable treatment in typical lease and eviction cases.
You know 56544 now. You don’t know where it ranks.
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