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 | $880 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $980 | $139,118 | 0.7% | D |
| 2BR | $1,150 | $206,779 | 0.56% | F |
| 3BR | $1,590 | $268,169 | 0.59% | F |
| 4BR | $1,920 | $356,698 | 0.54% | F |
| 5BR | $2,227 | $478,170 | 0.47% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 57103 in Sioux Falls, SD, for fiscal year 2024 is set at $980. This figure represents the maximum amount that a landlord can charge as rent for a Section 8 voucher holder. It's important to note that this is not your rent; it's the payment standard used by the Housing Choice Voucher program to determine the subsidy level.
In comparison, the average market rent in the same area, known as the ZORI (Zillow Observed Rent Index), is $1,378. This indicates that the market rent is higher than the Section 8 payment standard, which could affect your net income from such a property. However, the demand for rental properties in this area is strong, with 33.9% of residents being renters, suggesting a consistent pool of potential tenants.
If you're considering purchasing a property for a Section 8 rental in ZIP 57103, the median home value is around $286,957. This is the typical price you might expect to pay for an acquisition, but remember that the actual monthly rental income will be capped at the FMR of $980. The difference between the ZORI and the FMR means you'll need to carefully assess the financial viability of the investment, focusing on factors such as maintenance costs, vacancy rates, and the availability of subsidies.
Before making a decision, it's crucial to verify the specific terms and conditions of the Housing Authority in Sioux Falls. They will provide detailed information about the subsidy structure, tenant selection process, and any additional requirements or restrictions that could impact your investment. This verification step ensures you understand all aspects of the Section 8 program and can make an informed decision.
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.