Real Estate Investing in Waubun, Minnesota (56589)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56589 (Waubun, 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: 46.2% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 27.3 — 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 Waubun, MN (56589)?
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Market Analysis: 56589 Waubun
ZIP 56589 in Waubun, MN carries a impressive set of headwinds. Home values near $286K and rents of $873/mo sit inside a market where underwriting has to be tight.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $286K asset, 56589 is the wrong submarket. If the plan prices in friction, the yield can still work.
Within MN, ZIP 56589 trails on several market indicators that neighboring Becker County submarkets outperform. The gap is real and healthy enough to shape underwriting.
The demographic picture in 56589 includes headwinds that any investor should price in. Income distribution skews lower than Waubun averages, and tenant stability requires active management.
appears to the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Waubun:
Property Strategy for 56589
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $310,587 | $970 | 2.2% | +6.9% | $155,294 |
| 3BR | $365,302 | $1,230 | 2.4% | +6.4% | $121,767 |
Market Trends
Home Value History (with trend line)
📊 How Does 56589 Compare?
| Metric | 56589 | Waubun | Minnesota |
|---|---|---|---|
| Home Value | $285,546 | $285,546 | $340,597 |
| 5-Year CAGR | 5.6% | 5.6% | 4.9% |
| Avg Rent | $873 | $873 | - |
| Cap Rate | 2.4% | 2.4% | - |
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 56589 (Waubun, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $285,546 |
| Monthly Rent | $873 |
| Price-to-Rent | 27.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.7% |
| Cap Rate | 2.4% |
| 5-Year IRR | 8.0% |
📈 Home Appreciation
| 1-Year | +9.6% ▲ |
| 3-Year CAGR | +3.9% ▲ |
| 5-Year CAGR | +5.6% ▲ |
| 10-Year CAGR | +5.5% ▲ |
🏠 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 (2.4%). 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 56589
Population: 1,939
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 56589
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
Frequently Asked Questions
What are rental rates like in Waubun, MN?
Rents in Waubun, MN run near $873/mo. Compared with median home prices of $286K that produces solid gross yields for typical rentals.
How high is vacancy risk in Waubun, MN?
Vacancy in Waubun, MN is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $873/mo.
What real estate strategy is ideal for Waubun, MN?
The best-fit strategy in Waubun, MN is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
Does Waubun, MN favor landlords or tenants?
For rental operators, Waubun, MN rates as balanced. The regulatory environment standard buy-and-hold operations.
How deep is the rental pool in Waubun, MN?
Waubun, MN draws a reliable base of working renters. Demand at the $873/mo rent level is reasonable for standard single-family and small multi rentals.
You know 56589 now. You don’t know where it ranks.
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Community Ratings
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