Location: Lake 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 |
|---|---|---|---|---|
| 3BR | $1,430 | $326,286 | 0.44% | F |
U.S. Census Bureau data (2024)
The ZIP code 57048 presents a dynamic rental market that is influenced by the interplay between the Fair Market Rent (FMR) and the actual market rents. With an FMR of $910 for the fiscal year 2024, the government benchmark suggests a higher rent threshold compared to the reported market rent of $685 based on Census ACS data. This indicates that while there is a regulatory floor set at $910, the current market conditions allow for lower rents, potentially signaling a market where supply slightly outpaces demand.
The median home value of $376,679 provides insight into the overall economic landscape of the area. This figure, combined with the relatively low market rent, suggests that homeownership might be more prevalent than renting, which is further supported by the 13.4% renter share. A low renter share implies that a majority of residents own their homes, which could contribute to less immediate pressure on rental properties. However, it also means that any shift towards renting could exert significant upward pressure on rents, as evidenced by the gap between the FMR and the current market rent.
The lack of specific data on price-cut share and days on market (DOM) prevents a detailed analysis of the current supply-demand balance within the rental sector. Nonetheless, the disparity between the FMR and market rent suggests that landlords have some flexibility in pricing, but they may also face challenges in raising rents to meet the FMR due to the current market conditions.
In summary, ZIP 57048 operates in a balanced yet somewhat flexible rental environment. The current market rents are below the FMR, indicating a potential for gradual rent increases if the supply-demand dynamics change. The low renter share points to a community predominantly composed of homeowners, which could buffer against sudden rental pressures but also highlights the importance of monitoring any trends that might alter this composition.
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.