Real Estate Investing in Deer River, Minnesota (56636)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56636 (Deer River, 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: 37.8% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Deer River, MN (56636)?
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Market Analysis: 56636 Deer River
ZIP 56636 in Deer River, MN carries a sturdy set of headwinds. Home values near $261K and rents of $873/mo sit inside a market where underwriting has to be tight.
The investment case in 56636 is solid only for operators who understand what they are buying. A $261K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
In practical terms, 56636 offers a low basis, the region around Deer River has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
The demographic picture in 56636 includes headwinds that any investor should price in. Income distribution skews lower than Deer River averages, and tenant stability requires active management.
trends toward 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 Deer River:
Property Strategy for 56636
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $244,662 | $970 | 2.9% | +9.2% | $122,331 |
| 3BR | $295,573 | $1,270 | 3.1% | +7.9% | $98,524 |
Market Trends
Home Value History (with trend line)
📊 How Does 56636 Compare?
| Metric | 56636 | Deer River | Grand Rapids, MN | Minnesota |
|---|---|---|---|---|
| Home Value | $260,963 | $260,963 | N/A | $340,597 |
| 5-Year CAGR | 5.2% | 5.2% | N/A | 4.9% |
| Avg Rent | $873 | $873 | N/A | - |
| Cap Rate | 2.6% | 2.6% | - | - |
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 56636 (Deer River, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $260,963 |
| Monthly Rent | $873 |
| Price-to-Rent | 24.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.0% |
| Cap Rate | 2.6% |
| 5-Year IRR | 7.8% |
📈 Home Appreciation
| 1-Year | +4.2% ▲ |
| 3-Year CAGR | +3.7% ▲ |
| 5-Year CAGR | +5.2% ▲ |
| 10-Year CAGR | +5.8% ▲ |
🏠 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 (2.6%). 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 56636
Population: 4,679
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 56636
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
Can I live-in-and-rent in Deer River, MN?
Deer River, MN offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $873/mo rent level.
Are renters plentiful in Deer River, MN?
The tenant pool in Deer River, MN is solid, supported by local employment and population fundamentals. Rents of $873/mo are well-absorbed by the market.
Is vacancy a concern in Deer River, MN?
Occupancy in Deer River, MN runs stable with elevated vacancy. Well-priced units at $873/mo lease on reasonable timelines.
Is rental property easy to operate in Deer River, MN?
MN ranks as a balanced state for landlord-tenant law. Deer River generally follows the statewide framework, so landlords face reasonable operating rules.
Is real estate in Deer River, MN a good investment right now?
Investors tracking Deer River, MN will find a 3.0/5 rating supported by $261K median home values and $873/mo rents. That profile suits long-term holders targeting consistent returns.
You know 56636 now. You don’t know where it ranks.
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How 56636 ranks in Grand Rapids, MN
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