Real Estate Investing in Pelican Rapids, Minnesota (56572)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56572 (Pelican Rapids, 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: 45.2% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 38.5 — 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 Pelican Rapids, MN (56572)?
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Market Analysis: 56572 Pelican Rapids
Investors eyeing 56572 need to respect the fundamentals at play. Home values of $407K come alongside slower price movement and elevated management overhead.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 56572 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Statewide comparisons place 56572 among MN's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Employment concentration in 56572 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
The 56572 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 Pelican Rapids:
Property Strategy for 56572
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $348,190 | $980 | 2.0% | +7.9% | $174,095 |
| 3BR | $444,716 | $1,360 | 2.2% | +8.4% | $148,239 |
Market Trends
Home Value History (with trend line)
📊 How Does 56572 Compare?
| Metric | 56572 | Pelican Rapids | Fergus Falls, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $406,965 | $406,965 | N/A | $340,597 |
| 5-Year CAGR | 6.2% | 6.2% | N/A | 4.9% |
| Avg Rent | $882 | $882 | N/A | - |
| Cap Rate | 1.7% | 1.7% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56572 (Pelican Rapids, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $406,965 |
| Monthly Rent | $882 |
| Price-to-Rent | 38.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.6% |
| Cap Rate | 1.7% |
| 5-Year IRR | 7.9% |
📈 Home Appreciation
| 1-Year | +8.8% ▲ |
| 3-Year CAGR | +5.3% ▲ |
| 5-Year CAGR | +6.2% ▲ |
| 10-Year CAGR | +7.3% ▲ |
🏠 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 (1.7%). 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 56572
Population: 5,900
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 56572
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
What strategy should investors use in Pelican Rapids, MN?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Pelican Rapids, MN. The numbers - $407K homes against $882/mo rents - support that play.
How strong are rents in Pelican Rapids, MN?
Rental rates in Pelican Rapids, MN average $882/mo. Tenant demand and $407K home values make the yield look reasonable by investor standards.
How strong is the working-renter base in Pelican Rapids, MN?
Expect a solid tenant pool in Pelican Rapids, MN. The rental market absorbs $882/mo rents without meaningful friction.
How landlord-friendly is Pelican Rapids, MN?
Pelican Rapids, MN operates under MN law, which is balanced overall for landlords. Expect consistent treatment in typical lease and eviction cases.
What is the median home value in Pelican Rapids, MN?
In Pelican Rapids, MN the median home value sits at $407K. Against the broader MN market, that reads as reasonable for most investors.
You know 56572 now. You don’t know where it ranks.
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How 56572 ranks in Fergus Falls, MN
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