Real Estate Investing in Sioux Falls, South Dakota (57106)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 57106 (Sioux Falls, 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.
No major risk flags on the data we track.
What’s happening in Sioux Falls, SD (57106)?
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Market Analysis: 57106 Sioux Falls
The 57106 ZIP covers a section of Sioux Falls that demands careful diligence. Prices near $337K look accessible, but the work to make a deal cash flow is real.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 57106 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Within SD, ZIP 57106 trails on several market indicators that neighboring Minnehaha County submarkets outperform. The gap is real and significant enough to shape underwriting.
Turning to rents, 51,780 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
The right play in 57106 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Sioux Falls:
Property Strategy for 57106
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $257,649 | $1,200 | 3.4% | +7.1% | $128,825 |
| 3BR | $306,856 | $1,650 | 3.9% | +7.0% | $102,285 |
| 4BR | $353,122 | $2,010 | 4.1% | +6.6% | $88,280 |
| 5BR | $474,398 | — | — | +6.7% | $94,880 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 57106 Compare?
| Metric | 57106 | Sioux Falls | Sioux Falls, SD | South Dakota |
|---|---|---|---|---|
| Home Value | $337,139 | $220,477 | N/A | $311,504 |
| 5-Year CAGR | 5.0% | 5.0% | N/A | 6.8% |
| Avg Rent | $1,238 | $1,290 | N/A | - |
| Cap Rate | 2.9% | 3.0% | - | - |
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 57106 (Sioux Falls, SD). Anonymous, moderated, never written by AI.
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Property managers serving Minnehaha County
Manage rentals here? List your business →Costello Companies offers apartments and townhomes in South Dakota. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $337,139 |
| Monthly Rent | $1,238 |
| Price-to-Rent | 22.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.4% |
| Cap Rate | 2.9% |
| 5-Year IRR | 7.8% |
📈 Home Appreciation
| 1-Year | +4.1% ▲ |
| 3-Year CAGR | +2.9% ▲ |
| 5-Year CAGR | +5.0% ▲ |
| 10-Year CAGR | +6.0% ▲ |
🏠 Rent Trends
| 1-Year | +13.3% ▲ |
| 3-Year CAGR | +4.6% ▲ |
| 5-Year CAGR | +5.8% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.9%). 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 57106
Population: 51,780
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 57106
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
Investor Insight: With 1,030 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What is the best play in Sioux Falls, SD?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Sioux Falls, SD. The numbers - $337K homes against $1,238/mo rents - support that play.
Is the tenant base reliable in Sioux Falls, SD?
Sioux Falls, SD offers a predictable renter base at the $1,238/mo rent level. Tenant turnover is reasonable for well-managed properties.
How much should I expect to pay for a home in Sioux Falls, SD?
Sioux Falls, SD home values average about $337K. That price point suits investors targeting rentals with $1,238/mo in monthly income.
Does Sioux Falls, SD favor landlords or tenants?
Sioux Falls, SD falls under SD landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
What is the investability score for Sioux Falls, SD?
The 3.0/5 investability rating in Sioux Falls, SD reflects its $337K prices and $1,238/mo rents. Investors generally consider it a solid option within SD.
You know 57106 now. You don’t know where it ranks.
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How 57106 ranks in Sioux Falls, SD
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