Real Estate Investing in Williams, Minnesota (56686)
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Should you buy in 56686 (Williams, 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: 53.6% of homes vacant — above national norms.
• 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 Williams, MN (56686)?
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Market Analysis: 56686 Williams
ZIP 56686 in Williams, MN carries a notable set of headwinds. Home values near $224K and rents of $1,071/mo sit inside a market where underwriting has to be tight.
Distressed markets are won on execution, not on spreadsheets. ZIP 56686 comes in at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
ZIP 56686's metrics run below Lake of the Woods County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
The demographic picture in 56686 includes headwinds that any investor should price in. Income distribution skews lower than Williams 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 Williams:
Market Trends
Home Value History (with trend line)
📊 How Does 56686 Compare?
| Metric | 56686 | Williams | Minnesota |
|---|---|---|---|
| Home Value | $223,773 | $223,773 | $340,597 |
| 5-Year CAGR | 4.3% | 4.3% | 4.9% |
| Avg Rent | $1,071 | $1,071 | - |
| Cap Rate | 3.7% | 3.7% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56686 (Williams, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $223,773 |
| Monthly Rent | $1,071 |
| Price-to-Rent | 17.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.7% |
| Cap Rate | 3.7% |
| 5-Year IRR | 8.1% |
📈 Home Appreciation
| 1-Year | +8.0% ▲ |
| 3-Year CAGR | +1.1% ▲ |
| 5-Year CAGR | +4.3% ▲ |
| 10-Year CAGR | +4.6% ▲ |
🏠 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 (3.7%). 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 56686
Population: 962
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
Where do rents currently stand in Williams, MN?
Rent in Williams, MN is around $1,071/mo. The resulting rent-to-value relationship with $224K pricing is reasonable for most investor models.
How strong is the working-renter base in Williams, MN?
Tenant quality in Williams, MN ranks as solid. Landlords generally report steady occupancy at market rents of $1,071/mo.
How expensive is real estate in Williams, MN?
In Williams, MN the median home value sits at $224K. Against the broader MN market, that reads as reasonable for most investors.
Can owner-occupants cash flow in Williams, MN?
The house hack math a challenging in Williams, MN. Owner-occupant buyers benefit from the $1,071/mo rents and $224K home values.
What type of investing works in Williams, MN?
In Williams, MN the significant play is typically careful cash-flow rentals with hands-on management. The combination of $224K prices and $1,071/mo rents suits that approach.
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