Real Estate Investing in Ottertail, Minnesota (56571)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56571 (Ottertail, 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: 48.0% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 30.4 — 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 Ottertail, MN (56571)?
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Market Analysis: 56571 Ottertail
The 56571 ZIP covers a section of Ottertail that demands careful diligence. Prices near $378K look accessible, but the work to make a deal cash flow is real.
Rent of $1,035/mo on a $378K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 56571 sits below the stated 0.0% once reality is priced in.
ZIP 56571's metrics run below Otter Tail County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
The 56571 ZIP's population of 1,761 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that records the need for careful underwriting.
Strategy in 56571 is an operator game, not a passive one. Meanwhile, entry prices of $378K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Ottertail:
Market Trends
Home Value History (with trend line)
📊 How Does 56571 Compare?
| Metric | 56571 | Ottertail | Fergus Falls, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $377,874 | $377,874 | N/A | $340,597 |
| 5-Year CAGR | 6.1% | 6.1% | N/A | 4.9% |
| Avg Rent | $1,035 | $1,035 | N/A | - |
| Cap Rate | 2.1% | 2.1% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
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📊 Market Snapshot
| Home Value | $377,874 |
| Monthly Rent | $1,035 |
| Price-to-Rent | 30.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.3% |
| Cap Rate | 2.1% |
| 5-Year IRR | 8.2% |
📈 Home Appreciation
| 1-Year | +7.6% ▲ |
| 3-Year CAGR | +4.9% ▲ |
| 5-Year CAGR | +6.1% ▲ |
| 10-Year CAGR | +7.4% ▲ |
🏠 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 (2.1%). 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 56571
Population: 1,761
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
Which investment style suits Ottertail, MN?
Ottertail, MN investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($378K prices, $1,035/mo rents) make it a reasonable choice.
What kind of tenants rent in Ottertail, MN?
Expect a solid tenant pool in Ottertail, MN. The rental market absorbs $1,035/mo rents without meaningful friction.
What do rentals go for in Ottertail, MN?
Expect rents around $1,035/mo per month in Ottertail, MN. With home values at $378K, the yield math works out to reasonable levels for rental investors.
What are home prices like in Ottertail, MN?
Typical homes in Ottertail, MN go for around $378K. The 5-year CAGR of 0.0% stable price movement.
Do landlords face vacancy issues in Ottertail, MN?
Vacancy in Ottertail, MN is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $1,035/mo.
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How 56571 ranks in Fergus Falls, MN
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