Location: Sioux Falls, SD | Metro: Sioux Falls, SD HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $280,780 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 57013 encompasses a suburban neighborhood characterized by a relatively low population density of 4,504 residents. Renters make up 25.2% of the housing stock, indicating a mixed community where a significant portion owns their homes. The median household income stands at $76,458, reflecting a middle-class area with residents who have the financial stability to afford moderate housing costs. The median home value in the area is $298,317, which aligns well with the income levels and suggests a stable real estate market.
From an investment perspective, the economic dynamics of ZIP 57013 present a compelling opportunity. The Fair Market Rent (FMR) for the area, set at $910 for the fiscal year 2024, is notably higher than the average market rent reported by the Census Bureau's American Community Survey, which is $688. This disparity indicates that there is room for rental price increases without significantly deterring tenants, particularly those relying on Section 8 vouchers.
Given these conditions, ZIP 57013 could be an attractive location for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR compared to the current market rent means that properties can potentially command rents that are more in line with the government's standards, leading to better cash flows when leased to voucher holders. On the other hand, for hands-on investors looking to add value, the opportunity to increase rents while still being competitive with the FMR offers a path to enhancing property profitability through renovations and strategic management practices.
In summary, ZIP 57013 presents a balanced mix of ownership and renting, with a median income that supports moderate housing costs. The gap between the FMR and current market rents suggests potential for increasing rental income, making it suitable for both passive and active Section 8 investors.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.