Real Estate Investing in Federal Dam, Minnesota (56641)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56641 (Federal Dam, 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: 52.9% of homes vacant — above national norms.
- Higher unemployment: 12.6% unemployment — tenant risk signal.
- High price-to-rent: Price-to-rent ratio 25.6 — hard to cash-flow at these prices.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Federal Dam, MN (56641)?
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Market Analysis: 56641 Federal Dam
The 56641 ZIP in Federal Dam, MN is a local-operator market. Outside capital chasing a $274K entry has to pair deep knowledge with the discount.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 56641 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Statewide comparisons place 56641 among MN's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
A healthy renter share of 26% in 56641 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Strategically, 56641 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Federal Dam:
Market Trends
Home Value History (with trend line)
📊 How Does 56641 Compare?
| Metric | 56641 | Federal Dam | Brainerd, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $273,913 | $273,913 | N/A | $340,597 |
| 5-Year CAGR | 7.5% | 7.5% | N/A | 4.9% |
| Avg Rent | $891 | $891 | N/A | - |
| Cap Rate | 2.5% | 2.5% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56641 (Federal Dam, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $273,913 |
| Monthly Rent | $891 |
| Price-to-Rent | 25.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.9% |
| Cap Rate | 2.5% |
| 5-Year IRR | 10.0% |
📈 Home Appreciation
| 1-Year | +6.7% ▲ |
| 3-Year CAGR | +5.5% ▲ |
| 5-Year CAGR | +7.5% ▲ |
| 10-Year CAGR | +7.6% ▲ |
🏠 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 (2.5%). 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 56641
Population: 359
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
Do landlords face vacancy issues in Federal Dam, MN?
Federal Dam, MN sees elevated vacancy, which is reasonable relative to the broader MN rental market.
What is the typical rental rate in Federal Dam, MN?
Rents in Federal Dam, MN run near $891/mo. Compared with median home prices of $274K that produces solid gross yields for typical rentals.
What kind of tenants rent in Federal Dam, MN?
Expect a solid tenant pool in Federal Dam, MN. The rental market absorbs $891/mo rents without meaningful friction.
Is house hacking profitable in Federal Dam, MN?
The house hack math a challenging in Federal Dam, MN. Owner-occupant buyers benefit from the $891/mo rents and $274K home values.
How does Federal Dam, MN stack up for property investment?
Federal Dam, MN rates 3.0/5 for investability. With median values at $274K and rents near $891/mo, the market offers reasonable fundamentals for rental investors.
You know 56641 now. You don’t know where it ranks.
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How 56641 ranks in Brainerd, MN
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