Location: Crow Wing County, MN | Metro: Cass County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
U.S. Census Bureau data (2024)
The ZIP code 56425, located in Baxter, MN, presents an interesting mix of yield and stability factors that landlords and small-portfolio investors should consider. On the yield axis, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is projected at $1,310, while the market rent stands at $1,199. This indicates a moderate potential for rental income above the average market rate, suggesting a decent yield opportunity.
However, when juxtaposed with the median home value of $364,149, the yield appears less favorable. The cost of acquiring property in this area is significantly higher compared to the rental income it can generate, making it a less attractive option for high-yield investments. For context, the median household income in the area is $70,740, which supports the ability to pay higher rents but also highlights the financial capacity of residents.
Regarding stability, the ZIP code has a relatively high percentage of renters at 36.9%. This suggests a stable demand for rental properties. However, the lack of available data on the number of days a property stays on the market (DOM) introduces uncertainty regarding the speed of property turnover, which is crucial for assessing cash flow consistency.
In conclusion, ZIP 56425 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The combination of slightly above-average rental rates and a substantial renter population supports a reliable income stream. Nevertheless, the high median home value implies a lower yield relative to investment costs. Investors seeking both yield and stability might find this area more suitable for long-term holdings rather than short-term flips.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.