Sioux Falls, SD Rental Market
Sioux Falls is the economic engine of South Dakota and one of the fastest-growing cities in the upper Midwest, driven by Citibank and Wells Fargo's large credit card processing operations, Sanford Health's regional healthcare system, and a thriving retail and logistics hub. South Dakota's unique combination of no state income tax, no corporate income tax, and highly favorable trust and LLC laws has made Sioux Falls a national destination for financial services firms and business formation, driving consistent professional in-migration and rental demand.
Get a rent estimate for an address in Sioux FallsAverage Rent in Sioux Falls, SD
$1,080
per month · 2026-06
Market Score
Key Facts — Sioux Falls, SD Rental Market
- Average rent in Sioux Falls, SD:$1,080/mo
- Median rent:$994/mo
- Rent range:$550 – $2,400/mo
- Most common rental (2 bedrooms):$950/mo
- Active listings:680
- Avg days to lease:31 days
- Year-over-year change:+3.5%
- Median home value:$240,000
- Est. gross annual yield:5.4%
- Data as of:2026-06
Rent by Bedroom in Sioux Falls, SD
Average monthly rent for each bedroom type based on current active listings in Sioux Falls.
| Bedroom Type | Avg Rent/mo |
|---|---|
1 Bedroom | $775/mo |
2 Bedrooms | $950/mo |
3 Bedrooms | $1,225/mo |
4 Bedrooms | $1,500/mo |
5 Bedrooms | $1,700/mo |
Sioux Falls Rental Market Statistics
Key indicators from the current Sioux Falls, SD rental market.
680
Available now in Sioux Falls
31
From list to lease
$0.85
Average across listings
1,275 sq ft
Typical rental size
$550 – $2,400
Min to max active listings
+3.5%
Avg rent vs. prior year
Investing in Sioux Falls, SD Rental Properties
Estimated returns based on current market rents and median home values. Perform full due diligence before investing.
Median Home Value
$240,000
Typical purchase price in Sioux Falls
Est. Gross Annual Yield
5.4%
Before expenses & vacancy
Avg Monthly Income
$1,080
At average market rent
Gross yield = (avg rent × 12) ÷ median home value. Does not include expenses, financing, vacancies, or management fees. Analyze a specific property in Sioux Falls for a full cash-flow breakdown including all costs.
Sioux Falls, SD Rental Market FAQ
Common questions about renting and investing in Sioux Falls, SD.
What is the average rent in Sioux Falls, SD?
The average rent in Sioux Falls, SD is $1,080 per month as of 2026. One-bedroom apartments average $775/mo, two-bedrooms average $950/mo, and three-bedroom homes average $1,225/mo. Downtown and the Falls Park area command a premium among young professionals, while the rapidly developing south and southeast sides offer newer construction in the same price range.
Is Sioux Falls, SD a good place to invest in rental property?
Sioux Falls offers a 5.4% estimated gross annual yield with strong 3.5% year-over-year rent growth. South Dakota's complete absence of state income tax attracts businesses and high-income residents, while Citibank, Wells Fargo, Sanford Health, and major logistics employers create a diverse and growing tenant base. The city consistently ranks among the best places to live in the country, supporting both renter demand and long-term property appreciation.
How competitive is the Sioux Falls, SD rental market?
Sioux Falls has approximately 680 active listings and averages 31 days on market — one of the tighter rental markets in the Dakotas. In-migration from regional states seeking South Dakota's tax advantages keeps demand elevated, and quality rentals near major employers like Sanford Health, Citibank, and the Washington Pavilion arts corridor lease quickly. The market rewards well-maintained properties in desirable school districts.
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