Location: Sioux Falls, SD | Metro: Sioux Falls, SD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
U.S. Census Bureau data (2024)
18.6% of the population in ZIP 57039 are renters, indicating a moderate demand for rental properties. The Fair Market Rent (FMR) for the area, as of fiscal year 2024, is set at $910, which is higher than the reported market rent of $745 based on Census ACS data. This suggests that landlords could potentially increase their rental rates closer to the FMR without significantly impacting occupancy.
$322,209 is the median home value in ZIP 57039, reflecting a stable housing market where property values have remained consistent. For investors looking to purchase properties, this figure provides a benchmark for valuation and potential resale value.
$83,787 is the median income in the area, which is crucial for understanding the financial capability of potential tenants. Given the FMR and market rent figures, it's evident that the local economy supports rental pricing that aligns with the FMR, making it a feasible option for landlords.
The data does not provide a specific number for days on market (DOM), but the low price-cut share of 0.2% indicates that properties in ZIP 57039 are generally selling at or near their listed prices. This is positive for investors as it implies strong buyer interest and less need for price reductions to facilitate sales.
In conclusion, the combination of a reasonable renter share, a favorable gap between market rent and FMR, stable median home values, and strong selling prices without significant discounts makes ZIP 57039 an attractive investment area for landlords and small-portfolio investors. The Section 8 program, with its FMR guidelines, can be leveraged to ensure steady cash flow while maintaining competitive rental rates. ZIP 57039 is suitable for Section 8 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.