Introduction

Investing in rental properties can be a lucrative venture, providing a steady income stream and potential for long-term growth. A good rental property typically offers a balance of affordability, strong rental demand, and potential for property value appreciation. One of the most critical factors in the success of a rental property investment is its location. The right location can enhance rental income, attract desirable tenants, and ensure high occupancy rates.

Scott County, MN, is an attractive area for rental property investments due to its growing economy, diverse neighborhoods, and strong community amenities. This guide will explore some of the best neighborhoods in Scott County, MN, and provide a detailed analysis of each area's investment potential.

Best Neighborhoods and Areas in Scott County, MN

1. Shakopee

Grades:

• Convenience: A
• Tourist Attractions: A
• Things to Do: A
• Average Home Prices: B
• Return on Investment: A
• Proximity to Work-Related Travel: B
• X-Factor: A

Convenience: Shakopee is a hub of activity with excellent transportation links, including access to major highways like US-169 and MN-101. The city's infrastructure supports a high standard of living, with numerous shopping centers, grocery stores, and essential services.

Tourist Attractions: Shakopee is home to Valleyfair Amusement Park, Canterbury Park Racetrack and Casino, and the Minnesota Renaissance Festival, making it a prime location for attracting tourists and visitors year-round.

Things to Do: The area offers a plethora of recreational activities, including golf courses, parks, and the scenic Minnesota River. The Shakopee Mdewakanton Sioux Community also adds cultural richness and recreational opportunities.

Average Home Prices: While home prices in Shakopee are higher than some other areas in Scott County, they are still relatively affordable compared to the Twin Cities metro area. This makes it an attractive option for investors looking for properties that can command higher rental rates.

Return on Investment: With its robust rental demand and potential for property value appreciation, Shakopee offers a strong return on investment for rental property owners.

Proximity to Work-Related Travel: Shakopee's location provides easy access to several major employment centers, including downtown Minneapolis, making it convenient for commuters.

X-Factor: Shakopee's blend of entertainment, culture, and convenience makes it a unique and desirable location for both residents and investors.

2. Prior Lake

Grades:

• Convenience: B
• Tourist Attractions: B
• Things to Do: A
• Average Home Prices: B
• Return on Investment: B
• Proximity to Work-Related Travel: C
• X-Factor: A

Convenience: Prior Lake offers a quieter, suburban feel with good access to shopping and dining options, though it is less centrally located than Shakopee.

Tourist Attractions: The main attraction is Mystic Lake Casino Hotel, which draws numerous visitors. The area also benefits from the natural beauty of Prior Lake itself, which offers boating and fishing.

Things to Do: Outdoor enthusiasts will appreciate the parks, trails, and lake activities. The city also hosts various community events and festivals.

Average Home Prices: Home prices in Prior Lake are moderate, making it a good option for investors seeking a balance between cost and rental income potential.

Return on Investment: While the ROI may not be as high as Shakopee, Prior Lake still offers solid investment potential due to steady demand and a strong community.

Proximity to Work-Related Travel: The area is a bit farther from major employment hubs, which might be a drawback for some tenants.

X-Factor: The serene lake environment and community-focused living provide a unique charm that appeals to families and individuals looking for a peaceful place to live.

3. Savage

Grades:

• Convenience: A
• Tourist Attractions: C
• Things to Do: B
• Average Home Prices: B
• Return on Investment: B
• Proximity to Work-Related Travel: A
• X-Factor: B

Convenience: Savage offers excellent access to transportation networks, shopping centers, and essential services, making it a convenient place to live.

Tourist Attractions: While not a major tourist destination, Savage's proximity to larger attractions in neighboring cities is a plus.

Things to Do: The city provides plenty of parks, trails, and community activities, catering well to families and outdoor enthusiasts.

Average Home Prices: Home prices in Savage are reasonable, providing good opportunities for investors to enter the market at a moderate cost.

Return on Investment: Savage offers steady rental demand and a reasonable return on investment, especially for properties catering to families.

Proximity to Work-Related Travel: Its location near major highways and business districts makes it convenient for commuters working in the Twin Cities.

X-Factor: The community-oriented environment and access to quality schools and amenities make Savage an appealing choice for long-term residents.

4. Jordan

Grades:

• Convenience: B
• Tourist Attractions: B
• Things to Do: B
• Average Home Prices: A
• Return on Investment: B
• Proximity to Work-Related Travel: C
• X-Factor: B

Convenience: Jordan offers a small-town feel with necessary amenities close by, though it lacks the extensive infrastructure of larger cities.

Tourist Attractions: Attractions like Minnesota's Largest Candy Store and Sand Creek Adventures provide unique local flavor and draw visitors.

Things to Do: Residents enjoy outdoor activities, historical sites, and local events, fostering a tight-knit community.

Average Home Prices: Home prices in Jordan are more affordable, making it an attractive option for investors seeking lower entry costs.

Return on Investment: While not as high as some other areas, Jordan still offers good rental potential due to its affordable housing and steady demand.

Proximity to Work-Related Travel: The area is a bit more remote, which might be a drawback for those commuting to the Twin Cities.

X-Factor: Jordan's unique attractions and small-town charm make it a desirable location for those seeking a quieter, community-focused lifestyle.

5. Belle Plaine

Grades:

• Convenience: B
• Tourist Attractions: C
• Things to Do: B
• Average Home Prices: A
• Return on Investment: B
• Proximity to Work-Related Travel: C
• X-Factor: B

Convenience: Belle Plaine offers essential services and amenities, though it lacks the extensive options available in larger cities.

Tourist Attractions: The town is known for its historical sites and parks, offering a quaint charm but limited major attractions.

Things to Do: Outdoor activities and local events keep residents engaged, though options are more limited compared to larger areas.

Average Home Prices: Belle Plaine's home prices are among the lowest in Scott County, providing excellent opportunities for investors.

Return on Investment: The ROI is solid due to affordable property prices and consistent rental demand from residents seeking small-town living.

Proximity to Work-Related Travel: The area is more remote, which might be a drawback for those needing to commute frequently.

X-Factor: Belle Plaine's historical charm and affordable living make it a unique and attractive option for those seeking a quieter lifestyle.

Conclusion

Investing in rental properties in Scott County, MN, offers a variety of opportunities across different neighborhoods. Shakopee stands out with its strong return on investment and numerous attractions, while Prior Lake and Savage provide excellent amenities and community environments. Jordan and Belle Plaine offer more affordable entry points with their unique small-town charm. Each area has its own strengths, making Scott County a diverse and attractive region for rental property investments.