Real Estate Investing in Jefferson, South Dakota (57038)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 57038 (Jefferson, SD)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High price-to-rent: Price-to-rent ratio 32.6 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Jefferson, SD (57038)?
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Market Analysis: 57038 Jefferson
Looking more closely, ZIP 57038 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $398K median. It rewards specialists, not generalists.
For an experienced owner, 57038 can be a an appealing option for hunting ground — but the discount at $398K reflects genuine risk that outside investors often underestimate.
Put differently, 57038 offers a low basis, the region around Jefferson has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
The demographic picture in 57038 includes headwinds that any investor should price in. Income distribution skews lower than Jefferson averages, and tenant stability requires active management.
Experienced landlords with local relationships tend to find 57038 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Jefferson:
Market Trends
Home Value History (with trend line)
📊 How Does 57038 Compare?
| Metric | 57038 | Jefferson | Sioux City, IA-NE-SD | South Dakota |
|---|---|---|---|---|
| Home Value | $397,750 | $397,750 | N/A | $311,504 |
| 5-Year CAGR | 5.4% | 5.4% | N/A | 6.8% |
| Avg Rent | $1,017 | $1,017 | N/A | - |
| Cap Rate | 2.0% | 2.0% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 57038 (Jefferson, SD). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $397,750 |
| Monthly Rent | $1,017 |
| Price-to-Rent | 32.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.1% |
| Cap Rate | 2.0% |
| 5-Year IRR | 7.4% |
📈 Home Appreciation
| 1-Year | +4.6% ▲ |
| 3-Year CAGR | +3.4% ▲ |
| 5-Year CAGR | +5.4% ▲ |
| 10-Year CAGR | +6.0% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.0%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 57038
Population: 1,713
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Nearby Colleges & Universities
Investor Insight: With 1,587 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is Jefferson, SD a good place for real estate investing?
Yes - Jefferson, SD a 3.0/5 investability score. With $398K home prices against $1,017/mo monthly rent, the market delivers a reasonable entry point for new investors.
What kind of vacancy should I budget for in Jefferson, SD?
Jefferson, SD vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
What are rental rates like in Jefferson, SD?
Rental rates in Jefferson, SD average $1,017/mo. Tenant demand and $398K home values make the yield look reasonable by investor standards.
Is Jefferson, SD a good market for FHA house hackers?
Jefferson, SD offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,017/mo rent level.
What investment strategy works best in Jefferson, SD?
Most investors in Jefferson, SD run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
You know 57038 now. You don’t know where it ranks.
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How 57038 ranks in Sioux City, IA-NE-SD
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