Real Estate Investing in Madison, South Dakota (57042)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 57042 (Madison, 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 vacancy: 13.9% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 26.4 — 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 Madison, SD (57042)?
Click any question — our AI will research it live from the web and show you sources.
Local Pulse Report
AI-researched developments and news for Madison, SD (57042). Updated on demand as visitors ask.
Growth & development in Madison, SD (57042) Updated 3 days ago
Opportunities
- Manitou Group completed a major 80,000-square-foot expansion of its Madison facility in October 2023. — This expansion increases production capacity by over 150% by 2026 and added 30% more workstations, creating jobs and economic opportunity. Manitou Group
- Madison Family Dental received a $250,000 SD Works loan in July 2026 to build and equip a new clinic. — This will increase patient capacity, improve workflow with new technology, and create eight new full-time jobs. Northeast Radio SD
- The EmBe Madison Early Learning Center was under construction from 2025 through early 2026. — This new childcare facility strengthens the local workforce and improves the quality of life for families. Dakota Resources
- Cornerstone Property Development is offering newly built Boulder Heights Townhomes in 2026. — This provides new, modern housing options with multiple bedrooms, bathrooms, and amenities for residents. Cornerstone Property Development
- The Reserve, a new residential development in Northeast Madison, is now selling lots up to ½ acre. — This offers diverse housing options within city limits, with paved roads and city utilities. Signature Realty Group LLC
AI-generated from public web sources. Always verify with official records. Not financial, legal, or investment advice.
Here's what matters if you're considering buying a home in Madison:
Market Trends
Home Value History (with trend line)
📊 How Does 57042 Compare?
| Metric | 57042 | Madison | South Dakota |
|---|---|---|---|
| Home Value | $273,405 | $273,405 | $311,504 |
| 5-Year CAGR | 8.1% | 8.1% | 6.8% |
| Avg Rent | $864 | $864 | - |
| Cap Rate | 2.5% | 2.5% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 57042 (Madison, SD). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $273,405 |
| Monthly Rent | $864 |
| Price-to-Rent | 26.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.8% |
| Cap Rate | 2.5% |
| 5-Year IRR | 10.6% |
📈 Home Appreciation
| 1-Year | +5.3% ▲ |
| 3-Year CAGR | +5.0% ▲ |
| 5-Year CAGR | +8.1% ▲ |
| 10-Year CAGR | N/A |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (7.3%) exceeds the estimated cap rate (2.5%). 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 57042
Population: 7,900
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
🎓 Schools in 57042
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
Is Madison in SD worth investing in?
Our data puts Madison, SD at 3.0/5 for investability. Home prices of $273K and rents around $864/mo create a solid backdrop for investor activity.
How strong are rents in Madison, SD?
Investors in Madison, SD typically see rents near $864/mo per month against $273K home values - a solid setup for rental cash flow.
What are vacancy rates like in Madison, SD?
Madison, SD sees elevated vacancy, which is reasonable relative to the broader SD rental market.
Are renters plentiful in Madison, SD?
Madison, SD draws a measured base of working renters. Demand at the $864/mo rent level is reasonable for standard single-family and small multi rentals.
What real estate strategy is ideal for Madison, SD?
For Madison, SD, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
You know 57042 now. You don’t know where it ranks.
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