Location: Sioux Falls, SD | Metro: Sioux Falls, SD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
U.S. Census Bureau data (2024)
The rent math in ZIP code 57077, part of the Sioux Falls, SD HUD Metro FMR Area, does not favor Section 8 tenants. The Fair Market Rent (FMR) set at $1080 for the fiscal year 2024 is below the average market rent of $1,178 as reported by the Census Bureau's American Community Survey (ACS). This discrepancy means that landlords would be renting properties at a rate lower than what the market dictates, leading to potential financial losses.
Regarding property acquisition, the median home value of $303,326 is relatively high, but it is a standard figure for Sioux Falls. With no data available on days on market (DOM) or the percentage of homes that had their prices cut, it's difficult to gauge the affordability of acquiring properties in this area specifically for rental purposes. However, given the high median home value, purchasing properties might be challenging for small-portfolio investors looking for affordable entry points.
Tenant demand in ZIP 57077 is limited. The area has a total population of 1,417, with only 14.8% being renters. This low renter share suggests that finding tenants who qualify for Section 8 housing could be a challenge. The small pool of potential tenants makes it less likely to quickly fill vacancies, which can be costly for landlords.
In summary, ZIP code 57077 presents significant challenges for Section 8 landlords and small-portfolio investors. The rent math is unfavorable due to the gap between the FMR and market rent. High median home values make property acquisition less affordable. Lastly, the limited tenant demand, with a small renter share of the population, further complicates the prospect of successfully managing a Section 8 portfolio in this area.
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.