Location: Sioux Falls, SD | Metro: Sioux Falls, SD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 57027 in Sioux Falls, SD, fits well into a Section 8 portfolio strategy as a cash-flow anchor. The Fair Market Rent (FMR) for this area in fiscal year 2024 is set at $910 per month. This figure represents the maximum amount that a landlord can charge for a unit under the Section 8 program, ensuring steady, reliable rental income.
Given the current state of the data, there is no available information on market rents or median home values for ZIP 57027. However, the absence of such data does not diminish the value of this ZIP as a cash-flow anchor. The FMR provides a guaranteed floor for rental income, which is particularly useful for landlords and small-portfolio investors looking to mitigate risk and ensure consistent cash flow.
The lack of data on price cuts and days on market (DOM) suggests that this ZIP might not be a strong candidate for an appreciation play. Without concrete evidence of rising property values or decreasing time to sell, it's difficult to argue that investing in this area will lead to significant capital gains in the short term.
ZIP 57027 could also serve as a diversifier within a broader investment strategy. With a 15.0% renter share, it indicates a moderate demand for rental properties. This percentage is neither too high nor too low, making it suitable for balancing a portfolio that includes both owner-occupied and rental properties. However, without median income data, it's challenging to fully assess the financial health of potential tenants and the overall economic stability of the area.
In conclusion, ZIP 57027 should primarily be considered as a cash-flow anchor due to the defined FMR of $910. This approach ensures a predictable and stable income stream, which is crucial for maintaining financial security and planning long-term investments.
Data Sources: FMR data from HUD (2027). 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.