Invest In Apartment Buildings In Winona, MN

Who Rents In Winona

About 42% of households in Winona, MN rent their home. That's 4,532 renter households, according to the Census Bureau's ACS 2020–2024 estimates. Renter households rose 11.5% over five years while population grew -3.1%. More of Winona's residents are renting than before.

Median household income in Winona, MN is $56,337, up 15.7% over five years. Resident employment fell 3% and the unemployment rate was 2.7% in the latest survey. Rent has risen faster than income (31.2% versus 15.7%), so more tenants are stretched. Well-run older buildings that rent below new construction tend to hold up best in that setting.

Renters are a large minority in Winona. Buildings close to employers and main roads usually see the steadiest demand. Population fell 3.1% over five years, so we'd plan for slower leasing and conservative rent assumptions here.

The Supply Picture In Winona

Median gross rent in Winona, MN is $882 a month, up 31.2% from $672 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That's fast growth. Part of it reflects the national rent run-up of 2021 and 2022, and some of it can fade when new buildings open nearby, so we don't project the same pace forward.

Rental vacancy is 3.5%, which is tight. Vacant units in Winona tend to lease quickly. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 57.4% of renters spend 30% or more of their income on housing. That limits how hard rents can be pushed, so renewals and retention matter more than big increases.

About 24.6% of homes in Winona are in buildings with 5 or more units, roughly 2,837 homes. It grew 4.4% over five years, a moderate amount of new supply. The median home was built in 1955. Much of the stock is old enough that roofs, plumbing and electrical systems need a close look, and older buildings are where value-add renovation plans start.

Where Winona Stands Among Its Peers

Among the 44 Minnesota cities we track, Winona ranks 44th for median gross rent, 6th for renter share and 22nd for five-year rent growth. Its rents sit near the bottom of the group, which keeps it affordable for tenants but also caps what renovations can earn. Compared with the 2015–2019 survey, Winona now has about 845 fewer residents, 467 more renter households and 120 more homes in buildings with 5 or more units. Renter households grew by about 3.9 for every new home in a larger apartment building. Not every renter lives in an apartment, but demand has clearly kept ahead of new multifamily supply.

How Winona Compares With The Minnesota Average

Winona's median gross rent of $882 is below the Minnesota median of $1,280, and its renter share is 42% compared with 27.8% statewide.

Rent Versus Income In Winona

The median rent in Winona works out to $10,584 a year, about 18.8% of the median household income of $56,337. Under the common 30% guideline, a household needs about $35,300 a year to cover that rent comfortably. That's a heavier load than the Minnesota average of 17.2%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

Since the 2015–2019 survey, the median rent rose $210 a month ($2,520 a year), while median household income rose $7,645 a year. Rent has outpaced income, so we are careful about how much further a business plan pushes rents on renewal.

Winona Apartment Market Key Facts

If you only read one part of this page, read this list. Every figure is from the Census Bureau's ACS 5-year estimates.

• Winona, MN has 26,009 residents, down 3.1% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Winona, MN is $56,337, up 15.7% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Winona, MN is $882 a month, up 31.2% over five years (U.S. Census ACS 2020–2024).
• 42% of households in Winona, MN rent, about 4,532 renter households (U.S. Census ACS 2020–2024).
• 24.6% of homes in Winona, MN are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Winona, MN is 3.5%, and 57.4% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Winona, MN was built in 1955 (U.S. Census ACS 2020–2024).

What We Look For In A Winona Apartment Building

We look at buildings with 5 or more units in Winona, from small walk-ups to larger garden-style communities, in stabilized or value-add condition. We compare in-place rents with nearby buildings, inspect roofs, plumbing and HVAC, and ask whether better management or targeted renovation can close the gap with the market.

Property taxes are a big line item for any Minnesota apartment building. We estimate the tax bill as it will be after the purchase, because a sale can trigger a reassessment in many places. Minnesota has no statewide rent control, but St. Paul has a local rent stabilization ordinance. Insurance quotes in Minnesota reflect winter storm and frozen-pipe claims, so we get a quote before we make an offer.

Given how fast rents rose here, we assume much slower rent growth going forward and make sure the deal still works if rents stay flat for a while.

Due Diligence For Apartment Syndications In Winona

The data on this page turns into a short checklist for evaluating an apartment syndication in Winona.

• What vacancy does the plan assume? Rental vacancy in Winona is 3.5%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 31.2% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• What capital work is budgeted? The median home in Winona was built in 1955, so roofs, plumbing and electrical systems deserve their own line items.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Winona Apartment Syndication Works

Two groups make an apartment syndication work. The sponsor, or general partner, handles the deal: finding the building, financing it and running the business plan. The limited partners are passive investors who contribute capital and share in the property's results under the offering's terms.

It's a long-term commitment. The property has to be refinanced or sold before most capital comes back, and the outcome isn't certain. Eligibility rules vary by offering, and most are limited to accredited investors. See investing with Skyline Capital for how we work with limited partners.

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