Location: Clay 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $229,553 | 0.62% | D |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 57073 presents a nuanced picture that landlords and small-portfolio investors should carefully consider. With a median home value set at $255,112, it's important to note that the percentage of listings reduced and the median days on market (DOM) are currently unavailable. However, the missing data on reduced listings and DOM can be interpreted as a sign of stability or a lack of significant market activity that would otherwise necessitate adjustments in pricing strategies.
On the rental side, the Fair Market Rent (FMR) for ZIP 57073 in fiscal year 2024 is projected to be $910. This stands in contrast to the current market rent, which is reported at $694 according to the Census American Community Survey (ACS). The gap between the FMR and the actual market rent suggests an upward pressure on rents, indicating that there may be opportunities for landlords to increase rental income in line with the FMR without significantly affecting occupancy rates. This scenario supports a thesis of gradual rent growth, aligning with broader economic trends and cost-of-living adjustments.
For long-term hold investors, the setup in ZIP 57073 implies a potential for moderate appreciation. The median home value, while not indicative of rapid growth, provides a solid foundation for value retention and slow capital gains. Given the current economic climate and the steady demand for housing, the realistic appreciation thesis revolves around maintaining property values rather than experiencing dramatic increases. Investors should focus on property management practices that ensure consistent cash flow through rental income and prepare for modest annual increases in property value.
In summary, the combination of a stable median home value, the projected FMR, and the current market rent indicates a market where landlords and small-portfolio investors can expect steady returns through rental income and gradual appreciation. The key lies in adapting to the local rental dynamics and ensuring that properties remain competitive and well-managed.
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.