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.
Market Analysis: 57042 Madison
This part of Lake County is not an easy win. The 57042 ZIP reflects softness in key indicators, and the playbook that works in cleaner markets often stalls here.
The 57042 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
The gap between 57042 and stronger Madison ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Who lives in 57042 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
New investors are better served looking at Madison's stable or hybrid ZIPs before stepping into 57042. The learning curve here is expensive when the lesson is wrong.
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
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 57042 (Madison, SD). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 57042 (Madison, SD)?
~25 seconds · no account needed · your report is anonymous
📊 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 (6.8%) 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.
This page stays free — all of it. What one page can’t tell you is how 57042 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
AI Market Advisor
Ask questions about investing in 57042 (Madison)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 57042 (Madison, SD).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.