Updated 2026 · Based on median market data for Red Wing, MN
The median monthly rent in Red Wing, MN is $1,190, translating to $14,280 in annual gross rental income per unit. The rent-to-price ratio is 0.38% — well below the 1% rule, making pure cash flow investing challenging at median prices and requiring investors to target below-median purchases or value-add strategies. For context, a 0.38% rent-to-price ratio means that for every $100,000 invested in property, you collect approximately $378/mo in gross rent. The gross rent multiplier of 22.1x means it takes 22.1 years of gross rent to equal the purchase price — a high ratio that reflects price appreciation outpacing rent growth.
Renters in Red Wing spend approximately 23% of the local median household income ($60,800) on rent. This is well below the 30% threshold, suggesting significant headroom for rent increases. The 30% affordability ceiling puts maximum supportable rent at approximately $1,520/mo — a full $330/mo above the current median of $1,190. This gap represents real upside for landlords who invest in property upgrades that justify premium rents.
The vacancy rate in Red Wing is 4.8%. This is extremely tight — expect strong tenant demand, quick lease-ups, and leverage to set favorable lease terms. In markets this tight, landlords often see multiple applications per listing and can be highly selective on credit scores and income verification. You can also justify annual rent increases of 3-5% without significant pushback. Population growth of 0.5% annually provides stable demand.
Red Wing's GRM (price divided by annual rent) is 22.1x. A GRM above 16x means the property is expensive relative to its income. Investors here are typically betting on appreciation rather than current cash flow, which adds risk if the appreciation thesis does not materialize. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x. To beat Red Wing's median GRM, target properties where you can achieve rents above $1,190 through renovations, better marketing, or targeting underserved tenant segments — or buy at a discount to the $315,000 median price. Every point lower on GRM translates to roughly 0.5-0.8% improvement in your cap rate.
At the median rent of $1,190/mo, a single-family rental in Red Wing generates approximately $14,280 in gross annual income. After accounting for 4.8% vacancy ($685 lost), property taxes of $3,528, insurance (~$1,260), and maintenance (~$1,260), the estimated NOI is $7,547 per year, or $629/mo. Adding an 8% management fee ($1,142/yr) reduces investor cash flow further. Before debt service, you are looking at approximately $6,404/yr in landlord net income. Whether this is attractive depends on your total capital invested — at a $63,000 down payment, the unlevered yield on equity from NOI alone is 12.0%.
Rent growth in Red Wing is driven by the interplay of population growth (0.5%), income growth, and housing supply constraints. With 0.5% population growth, organic rent growth will be slower — roughly 1.5% annually, taking rents from $1,190 to $1,282 over 5 years. The affordability headroom of $330/mo between current rents and the 30% income threshold provides substantial room for rent increases without pushing tenants into financial stress.
The median income of $60,800 supports a mixed tenant base of young professionals, small families, and long-term renters. In a smaller market of 50,000 residents, word-of-mouth and local listing platforms may be more effective than national sites for finding tenants.
Red Wing is a smaller market where professional PM options may be limited. Fees can run 10-12% of rent, and the quality of available managers varies widely. At $1,190/mo, management costs roughly $131/mo. Self-management makes sense if you are local, have fewer than 5 units, and the rent level justifies your time — at $1,190/mo, self-management of a small portfolio saves meaningful dollars but professional management becomes economical at 3-4 units.
Red Wing vs Minnesota state average and national average across key investment metrics. Red Wing's cap rate is below both benchmarks — deal sourcing is critical here.