Real Estate: Investing in College Towns

By Suzanne Woolley - 2012-11-05T17:52:30Z

Photograph by The Minnesota Daily/AP Photo

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Minneapolis-St. Paul, Minnesota

School: University of Minnesota
Students: 52,557
Median home value: $157,300

Yes, it's the home of Spam and the headquarters of Target. And it has a very long, cold winter. It also has one of the largest main campus student bodies in the U.S. and lots of great culture, including the Walker Art Center. The Zillow Rent Index's $1,400 figure, up 10 percent from a year ago August, compares with a monthly payment of $706 for a 30-year fixed mortgage at a rate of 3.5 percent. The breakeven horizon is two years, eight months. Just under 62 percent of homes here have increased in value since August 2011.