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 | $990 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,780 | $463,689 | 0.38% | F |
U.S. Census Bureau data (2024)
The ZIP code 57055 represents a neighborhood characterized by a relatively small population of 1,404 residents, where only 6.4% of the homes are rented out. This indicates a predominantly owner-occupied area, suggesting a tight-knit community with a strong sense of permanence. The median household income in this area stands at $120,341, which is quite high, pointing towards an affluent demographic. Reflecting this wealth, the median home value in the ZIP is $484,100, placing it firmly in the upper echelons of property values.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 57055 in fiscal year 2024 is set at $1,070. However, the market rent data is currently unavailable, making it difficult to directly compare the two figures. Despite this lack of direct comparison, the high median income suggests that there could be a strong demand for rental properties among those who qualify for Section 8 assistance, as the local economy supports a higher standard of living and spending power.
Given these conditions, ZIP 57055 is more suited to a hands-off voucher operator rather than a hands-on value-add buyer. The limited number of renters indicates that the market for rental properties is small, and the existing properties likely cater well to the current needs of tenants. For a landlord or small-portfolio investor, focusing on maintaining properties to meet the standards required for Section 8 tenancy, without extensive renovations or improvements, would be a more practical approach. The key to success in this ZIP would be ensuring that the properties comply with the HUD requirements and that the rents align with the $1,070 FMR, thereby providing a stable income stream without the need for significant capital investment or active management beyond what is typical for Section 8 properties.
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.