Real Estate Investing in Oklee, Minnesota (56742)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 56742 (Oklee, 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: 17.2% 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 Oklee, MN (56742)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 56742 Oklee
Put differently, ZIP 56742 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $195K median. It rewards specialists, not generalists.
For an experienced owner, 56742 can be a worth a close look for hunting ground — but the discount at $195K reflects genuine risk that outside investors often underestimate.
Regionally, 56742 sits on the difficult end of the MN spectrum. The an appealing option for read — for disciplined operators — is that pricing reflects the difficulty.
Employment concentration in 56742 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
The 56742 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Oklee:
Market Trends
Home Value History (with trend line)
📊 How Does 56742 Compare?
| Metric | 56742 | Oklee | Minnesota |
|---|---|---|---|
| Home Value | $195,093 | $222,450 | $340,597 |
| 5-Year CAGR | 3.2% | 2.3% | 4.9% |
| Avg Rent | $909 | $959 | - |
| Cap Rate | 3.6% | 3.4% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 56742 (Oklee, MN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $195,093 |
| Monthly Rent | $909 |
| Price-to-Rent | 17.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.6% |
| Cap Rate | 3.6% |
| 5-Year IRR | 6.8% |
📈 Home Appreciation
| 1-Year | +10.4% ▲ |
| 3-Year CAGR | +1.0% ▲ |
| 5-Year CAGR | +3.2% ▲ |
| 10-Year CAGR | N/A |
🏠 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 (3.6%). 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 56742
Population: 806
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 56742
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
What is the smart move for investors in Oklee, MN?
Investors usually favor careful cash-flow rentals with hands-on management in Oklee, MN. With home values at $195K and rents near $909/mo, other strategies can work but produce stable rather than outsized returns.
What are rental rates like in Oklee, MN?
Oklee, MN rentals go for roughly $909/mo a month. That puts gross yield in solid territory relative to $195K acquisition costs.
What kind of tenants rent in Oklee, MN?
The renter base in Oklee, MN is reasonable for the $909/mo price point. Screening well and pricing to market typically yields reliable tenants.
Does a duplex house hack pencil in Oklee, MN?
House hacking in Oklee, MN is reasonable to execute. Prices around $195K and rents of $909/mo solid owner-occupant economics.
What kind of market is Oklee, MN for investors?
Oklee, MN scores 3.0/5 for investability. Home values sit at $195K and rents near $909/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
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