Best ZIP Codes for Cash Flow in Watertown, SD (2026)
Ranked by cap rate — the annual return on the purchase price before financing. ZIPs that also clear the 1% rule are marked.
| # | ZIP | City | Home value | Rent | Cap rate | 5-yr growth |
|---|---|---|---|---|---|---|
| 1 | 57201 | Watertown, SD | $326,761 | $1,205 | 2.88% | 4.4% |
| 2 | 57223 | Castlewood, SD | $352,114 | $1,053 | 2.33% | — |
| 3 | 57234 | Estelline, SD | $297,916 | $837 | 2.19% | 6.9% |
| 4 | 57221 | Bryant, SD | $299,577 | $837 | 2.18% | — |
| 5 | 57241 | Hayti, SD | $322,681 | $837 | 2.02% | — |
| 6 | 57235 | Florence, SD | $524,853 | $909 | 1.35% | — |
| 7 | 57242 | Hayti, SD | $541,844 | $909 | 1.31% | — |
| 8 | 57263 | South Shore, SD | $557,161 | $837 | 1.17% | — |
Ranked from Repit’s own ZIP-level data — Zillow home values and rents, HUD fair-market rents where Zillow has no coverage, and U.S. Census vacancy. Cap rate is gross: annual rent over purchase price, before financing and expenses. Every ZIP above links to its full free page. How we calculate this →