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MarketsMinnesotaHutchinson

Cap Rate Analysis: Hutchinson, MN

Investment metrics, interactive calculators, and data-driven analysis for Hutchinson rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Challenging for pure cash flow
Based on $285,000 median price and $1,250/mo median rent
Est. Cap Rate
3.09%
1% Rule
0.44%
Fails
GRM
19.0x
Price / Income
4.7x

Market Data

Median Home Price$285,000
Median Monthly Rent$1,250
Property Tax Rate1.12%
Population50,000
Population Growth0.5% / yr
Median Household Income$60,800
Vacancy Rate4.8%
Annual Appreciation2.6%

Cap Rate Calculator — Hutchinson

Pre-filled with Hutchinson medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.12% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.54%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,248
net operating income
Gross Rent Multiplier
19.0x
High (>15)
1% Rule
0.44%
✗ Fails
Monthly Cash Flow
$604
before debt service
Annual Breakdown
Gross Rental Income$15,000
Less Vacancy−$720
Effective Income$14,280
Less Operating Expenses−$7,032
Net Operating Income$7,248
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Cash-on-Cash Return — Hutchinson

Factor in financing to see your actual return on invested capital in Hutchinson.

$
$71,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.05%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$79,800
$71,250 down + $8,550 closing
Monthly Mortgage
$1,393
on $214K loan
Monthly Cash Flow
$-668
after all expenses
Annual Cash Flow
$-8,022
before taxes
Cash Flow Breakdown
Monthly Rent$1,250
Less Expenses−$525
Less Mortgage−$1,393
Monthly Cash Flow$-668

Is Hutchinson a Good Place to Invest in Rental Property?

Hutchinson, MN has a population of 50,000 and has been growing at 0.5% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $285,000 paired with median rents of $1,250/mo produces an estimated cap rate of 3.09%.

Property taxes at 1.12% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 4.7x, homes cost about 4.7 times the local median income of $60,800. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.6% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: At current median prices, Hutchinson is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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