Location: Moody 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 | $880 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $259,488 | 0.44% | F |
| 3BR | $1,590 | $317,180 | 0.5% | F |
| 4BR | $1,930 | $404,741 | 0.48% | F |
| 5BR | $2,239 | $582,186 | 0.38% | F |
U.S. Census Bureau data (2024)
The market in ZIP 57022, Dell Rapids, SD, presents a dynamic environment characterized by specific housing trends. The Fair Market Rent (FMR) for the area stands at $1040 for fiscal year 2024, while the average market rent, according to the Census ACS, is slightly lower at $999. This suggests that the rental market is competitive, with rents hovering just below the benchmark set by the FMR.
The median home value in the region is $365,242, indicating a middle-tier property value range that could be attractive to both buyers and sellers. However, the lack of data on price-cut share and days on market (DOM) prevents a definitive assessment of whether supply outpaces demand or vice versa. Typically, if there were high price-cut shares or extended DOM periods, it would signal an oversupply issue. Conversely, low price-cut shares and short DOM periods would indicate strong demand. In this case, the absence of such data leaves these dynamics ambiguous.
The 16.6% renter share in Dell Rapids points towards a predominantly owner-occupied community. This figure implies that the majority of residents own their homes, which can suggest stability and long-term investment in the local housing stock. However, it also indicates that there is ongoing pressure for housing, particularly for those who cannot afford to purchase homes at the median value of $365,242. This pressure is likely to continue, as the rental market remains active, with rents close to the FMR.
The interplay between rental and homeownership rates in ZIP 57022 highlights a balanced yet evolving market. Landlords and small-portfolio investors should consider the steady rental rates and the potential for increasing long-term housing pressures as they make decisions regarding investments and property management strategies. The relatively high median home value also suggests that there may be opportunities for flipping properties or developing affordable housing options to cater to the needs of renters looking to transition into homeownership.
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.