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 | $1,190 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,140 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $296,172 | 0.52% | F |
| 3BR | $2,140 | $344,865 | 0.62% | D |
| 4BR | $2,590 | $490,314 | 0.53% | F |
| 5BR | $3,004 | $670,165 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 57108 in Sioux Falls, SD, is home to a population of 33,966 individuals, with 38.2% of them being renters. This indicates that the area has a significant tenant pool, making it an attractive location for landlords and small-portfolio investors. The median household income in this ZIP code is $98,197, which provides a solid financial base for potential tenants.
The market rent in ZIP 57108 is set at $1,311, representing approximately 13.35% of the median household income. This percentage suggests that the rent is affordable for most residents, leaving a substantial portion of their income for other expenses. The Fair Market Rent (FMR) for the area, as determined by HUD for FY 2024, is $1,300, closely aligning with the market rent and indicating a balanced rental market.
Given the high percentage of renters and the relatively low rent compared to the median income, there is likely to be strong demand for Section 8 vouchers in this ZIP code. Landlords can expect a tenant pool that includes individuals and families who benefit from housing assistance programs, ensuring a steady stream of qualified applicants who can meet their rent obligations consistently.
A landlord in ZIP 57108 should anticipate tenants who are financially stable and capable of handling rent at or below the market rate. The combination of a robust rental market and a median income that comfortably covers typical rents makes this area favorable for those seeking to lease properties. With 38.2% of the population renting, there is a considerable opportunity for landlords to capitalize on the demand for affordable housing options.
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.