Location: Clay County, 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 |
|---|---|---|---|---|
| 2BR | $1,050 | $174,718 | 0.6% | D |
| 3BR | $1,430 | $325,238 | 0.44% | F |
| 4BR | $1,750 | $373,150 | 0.47% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 57014, located in Centerville, SD, does not favor landlords. The Federal Market Rent (FMR) for the area is set at $910 per month for fiscal year 2024. However, the actual market rent, according to the Census American Community Survey, stands at $556 per month. This disparity means that landlords would need to either lower their expectations or find ways to justify higher rents to potential tenants.
Acquisition in this area is relatively affordable. With a median home value of $292,939, purchasing properties can be considered within reach for many investors. Unfortunately, the data on days on market (DOM) and the percentage of homes needing price cuts is not available, which makes it difficult to assess how quickly homes sell and whether they require any adjustments in pricing to attract buyers.
Tenant demand is limited in Centerville, SD. The total population is 1,667, and only 12.9% of residents are renters. This low renter share suggests that there might not be enough tenants to fill rental units if there were a significant increase in the number of rental properties. Landlords should be cautious about overestimating the number of potential tenants in this market.
Overall, while the acquisition cost is reasonable, the rent math does not work in favor of landlords due to the significant gap between the FMR and the actual market rent. Additionally, the limited tenant demand poses a challenge to maintaining occupancy rates. These factors suggest that investing in ZIP 57014 may not be a lucrative opportunity for landlords and small-portfolio investors seeking high returns.
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.