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 | $970 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $333,199 | 0.38% | F |
| 3BR | $1,750 | $376,750 | 0.46% | F |
| 4BR | $2,120 | $428,035 | 0.5% | F |
| 5BR | $2,459 | $634,897 | 0.39% | F |
U.S. Census Bureau data (2024)
Situated in Sioux Falls, SD, ZIP code 57110 is a diverse neighborhood with a total population of 23,313. It has a significant rental market, with 34.1% of residents being renters. The area boasts a strong economic foundation, evidenced by the median household income of $88,955, which is well above the national average. This financial stability is further reflected in the median home value of $423,324, indicating a robust housing market.
When it comes to rental economics, ZIP 57110 presents an interesting scenario. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,120, which is notably lower than the market rent as measured by ZORI (Zillow Observed Rent Index), currently at $1,293. This discrepancy suggests that landlords can potentially earn higher returns by renting properties without relying solely on Section 8 vouchers, given the higher market rents.
The neighborhood's characteristics make it suitable for both hands-off voucher operators and hands-on value-add buyers. For those who prefer a hands-off approach, the established Section 8 program offers a steady stream of income with minimal risk. However, for investors willing to take a more active role, there is potential to increase property values and rental incomes by leveraging the strong local economy and high demand for rental properties.
To summarize, ZIP 57110 in Sioux Falls, SD, is a financially sound neighborhood with a substantial rental market. While the FMR for Section 8 is $1,120, the actual market rent is significantly higher at $1,293. This makes it an attractive investment for both passive and active real estate investors.
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.