Real Estate Investing in Spencer, South Dakota (57374)
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Should you buy in 57374 (Spencer, 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: 23.9% of homes vacant — above national norms.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Spencer, SD (57374)?
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Market Analysis: 57374 Spencer
Not every below-median market is a bargain. Spencer's 57374 ZIP shows signals that favor experienced operators who can absorb the risk $270K pricing implies.
On balance, the numbers look inviting — $270K purchase price, 0.0% nominal cap — the work to hit that pro forma in 57374 is substantial and deserves full respect.
Within SD, ZIP 57374 trails on several market indicators that neighboring McCook County submarkets outperform. The gap is real and impressive enough to shape underwriting.
On balance, 318 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.
Strategy in 57374 is an operator game, not a passive one. Put differently, entry prices of $270K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Spencer:
Market Trends
Home Value History (with trend line)
📊 How Does 57374 Compare?
| Metric | 57374 | Spencer | Sioux Falls, SD | South Dakota |
|---|---|---|---|---|
| Home Value | $270,314 | $270,314 | N/A | $311,504 |
| 5-Year CAGR | 4.6% | 4.6% | N/A | 6.8% |
| Avg Rent | $909 | $909 | N/A | - |
| Cap Rate | 2.6% | 2.6% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 57374 (Spencer, SD). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $270,314 |
| Monthly Rent | $909 |
| Price-to-Rent | 24.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.0% |
| Cap Rate | 2.6% |
| 5-Year IRR | 7.2% |
📈 Home Appreciation
| 1-Year | +10.0% ▲ |
| 3-Year CAGR | +5.3% ▲ |
| 5-Year CAGR | +4.6% ▲ |
| 10-Year CAGR | +7.0% ▲ |
🏠 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 (2.6%). 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 57374
Population: 318
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
Frequently Asked Questions
How much rent can I charge in Spencer, SD?
Spencer, SD rentals go for roughly $909/mo a month. That puts gross yield in solid territory relative to $270K acquisition costs.
What price range are homes in Spencer, SD?
Median home price in Spencer, SD is near $270K, with a 5-year CAGR of 0.0%. Prices have been steady and supportive of buy-and-hold strategies.
How tight is the rental market in Spencer, SD?
Spencer, SD carries elevated vacancy risk. Expect predictable absorption at market rents of $909/mo.
How viable is house hacking in Spencer, SD?
House hacking in Spencer, SD is a challenging. With home values around $270K and rents at $909/mo, owner-occupants can offset a meaningful share of PITI.
What type of investing works in Spencer, SD?
Investors usually favor careful cash-flow rentals with hands-on management in Spencer, SD. With home values at $270K and rents near $909/mo, other strategies can work but produce predictable rather than outsized returns.
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