Aurora, MN — Rental Investment Analysis
🟢GOOD— solid returnsData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Aurora, MN offers a 7.4% cap rate with median home prices of $141,456 and 3-bedroom rents of $1,300/month.
Aurora offers solid returns for rental investors. With a median home price of $141,456, entry costs are low — making it accessible for beginning investors or those buying multiple properties. With 3-bedroom rents around $1,300/month, the 7.4% cap rate tells the story. Expect around +$112/month cash flow after mortgage, taxes, insurance, and reserves.
The 1% rule comes in at 0.93% — doesn't quite pass, but close enough to find individual deals that work. DSCR of 1.16 is tight — you'll pass most lender minimums but with little margin for error.
Bottom line: Buy here if you want reliable monthly income. Aurora is a cash flow market — don't expect rapid appreciation, but the checks come in every month.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
7.4%
Above average
Monthly Cash Flow
+$112
After all expenses
Price-to-Rent
9.1
Investor-friendly
DSCR
1.16
Tight
Key Metrics
- Median Home Price
- $141,456
- Average Rent (3BR)
- $1,300/mo
- Price-to-Rent Ratio
- 9.1(good)
- 1% Rule
- 0.93%(fails — need 1%+)
- Cash-on-Cash Return
- 4.6%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 4.5%(+0.2% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- +0.2% YoY
Property Tax Rate
1.05%
of assessed value (MN avg)
Median Income
$77,706
household (MN avg)
Rent-to-Income
20.1%
Affordable
Section 8 Max Rent
$1,300/mo
3BR voucher payment
MN Investor Climate
Landlord Friendly
6/10
State Income Tax
Has state tax
Property Tax
1.05% effective
Population Trend
+0.2% (3yr)