Real Estate Investing in Perham, Minnesota (56573)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56573 (Perham, 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: 25.9% of homes vacant — above national norms.
- Higher unemployment: 8.1% unemployment — tenant risk signal.
- High price-to-rent: Price-to-rent ratio 35.4 — 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 Perham, MN (56573)?
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Market Analysis: 56573 Perham
The 56573 ZIP in Perham, MN is a local-operator market. Outside capital chasing a $371K entry has to pair deep knowledge with the discount.
The investment case in 56573 is durable only for operators who understand what they are buying. A $371K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
ZIP 56573'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.
Resident income in 56573 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
The right play in 56573 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Perham:
Market Trends
Home Value History (with trend line)
📊 How Does 56573 Compare?
| Metric | 56573 | Perham | Fergus Falls, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $370,762 | $370,762 | N/A | $340,597 |
| 5-Year CAGR | 5.8% | 5.8% | N/A | 4.9% |
| Avg Rent | $873 | $873 | N/A | - |
| Cap Rate | 1.8% | 1.8% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56573 (Perham, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $370,762 |
| Monthly Rent | $873 |
| Price-to-Rent | 35.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.8% |
| Cap Rate | 1.8% |
| 5-Year IRR | 7.7% |
📈 Home Appreciation
| 1-Year | +8.7% ▲ |
| 3-Year CAGR | +6.0% ▲ |
| 5-Year CAGR | +5.8% ▲ |
| 10-Year CAGR | +6.8% ▲ |
🏠 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 (1.8%). 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 56573
Population: 6,868
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 56573
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
Is it easy to find good tenants in Perham, MN?
Expect a solid tenant pool in Perham, MN. The rental market absorbs $873/mo rents without meaningful friction.
What is the investability score for Perham, MN?
Investors tracking Perham, MN will find a 3.0/5 rating supported by $371K median home values and $873/mo rents. That profile suits long-term holders targeting steady returns.
What are home prices like in Perham, MN?
Perham, MN median home values land near $371K. That is reasonable territory for investors looking at $873/mo-per-month rentals.
Does house hacking make sense in Perham, MN?
Perham, MN offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $873/mo rent level.
How much do tenants pay in Perham, MN?
Rents in Perham, MN run near $873/mo. Compared with median home prices of $371K that produces solid gross yields for typical rentals.
You know 56573 now. You don’t know where it ranks.
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