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 | $950 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $187,923 | 0.67% | D |
| 3BR | $1,730 | $324,511 | 0.53% | F |
| 4BR | $2,120 | $416,312 | 0.51% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 57036 (Hurley, SD) on the yield and stability axes reveals a market that is neither a high-yield/low-stability flip-style area nor a steady-cashflow zone, but rather a region that falls in between these extremes.
Yield: The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1440 for ZIP 57036. This is significantly higher than the average market rent of $544, indicating a potential for higher rental yields. However, when compared to the median home value of $302,695, the gap between FMR and market rent suggests that while there is room for profit, it may not be as lucrative as areas where the FMR far exceeds the market rent. Landlords and small-portfolio investors should consider the cost of acquisition and maintenance against the rental income potential before entering this market.
Stability: Stability in this context can be gauged by the percentage of renters, which stands at 10.4%, and the median household income of $85,000. The low percentage of renters indicates that the majority of residents in Hurley, SD, are homeowners, which could make it challenging to find tenants. Additionally, the lack of data on days on market (DOM) for vacant rentals suggests that the rental market is not well-documented or highly active. Despite these factors, the relatively high median household income provides some assurance that those who do rent are likely to have stable financial situations, reducing the risk of defaulting on rent payments.
In summary, ZIP 57036 presents an opportunity for moderate rental yields due to the disparity between the FMR and market rent. However, the stability of the rental market is questionable given the low percentage of renters and limited data on rental turnover. For landlords and small-portfolio investors, this area offers a balanced scenario where potential profits must be weighed against the challenges of finding tenants and the overall activity level in the rental market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.