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 | $970 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $249,240 | 0.51% | F |
| 3BR | $1,740 | $331,536 | 0.52% | F |
| 4BR | $2,110 | $391,693 | 0.54% | F |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 57053, located in Parker, SD, reveals a significant opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $990, while the actual market rent, according to the latest Census ACS data, is $983. This creates a $7 difference, or approximately 0.71%, where the FMR exceeds the market rent.
This gap makes the ZIP code a prime yield play for landlords willing to accept housing vouchers. Despite the slight premium over market rates, the overall rental environment in Parker, SD, is characterized by a relatively low percentage of renters at 20.0%. This means that landlords who cater to voucher tenants can secure a steady stream of reliable income, backed by the government, which is essential in a market with fewer potential tenants.
With a median home value of $337,372 and a median income of $93,393, the economic profile of Parker suggests that many residents may find it challenging to afford market rents without assistance. The slightly higher FMR rate for voucher tenants helps bridge this affordability gap, ensuring that landlords receive a rent that is closer to their expected revenue, even if it's still below the theoretical peak of the open market.
Moreover, the stability offered by Section 8 vouchers can be particularly beneficial in a smaller community like Parker, where finding long-term, financially stable tenants might otherwise be difficult. The program guarantees payment, reducing the risk of vacancy and non-payment, which are common concerns for landlords in areas with lower median incomes and a smaller pool of renters.
In summary, the $7 premium on FMR over market rent in ZIP 57053 makes it an attractive proposition for landlords looking to maximize yields and ensure consistent cash flow. This is especially true given the local context of Parker, SD, where the economic conditions support the need for affordable housing solutions.
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.