Department of Numbers

Sioux Falls, South Dakota Home Affordability

The data below measures home affordability for the Sioux Falls, South Dakota metropolitan area using price-to-income and price-to-rent metrics.1 The maximum affordable loan amount for the median household income is also calculated. You can also compare Sioux Falls home affordability to other cities.

Sioux Falls, South Dakota Home Price-to-Income Ratios

The current price-to-income ratio for Sioux Falls is 2.96 as determined by March 2014 Realtor median sales prices. The second chart shows a history of the ratio as an index calculated from the Federal Housing Finance Agency's Sioux Falls HPI series. Median household income data for Sioux Falls is from the Census American Community Survey.

Price-to-Income Dollar Ratio: Realtor

Price-to-Income Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Sioux Falls, South Dakota Home Price-to-Income Ratio History

Date Realtor
(Dollar Ratio)
FHFA
(Index Ratio)
March 2014 2.96
December 2013 2.96 120.8
September 2013 3.06 120.9
June 2013 3.06 119.4
March 2013 2.87 118.8
December 2012 2.88 117.3
September 2012 2.88 116.0
June 2012 2.88 115.5
March 2012 2.88 115.4

Sioux Falls, South Dakota Home Price-to-Rent Ratios

The current adjusted price-to-rent ratio for Sioux Falls is 16.79 as determined by March 2014 Realtor median sales prices. This ratio is calculated using household size adjusted median contract rent for Sioux Falls. The chart below shows an index of the rent ratio calculated from the metro FHFA HPI series and the Sioux Falls median contract rent data from the Census ACS.

Price-to-Rent Dollar Ratio: Realtor, Realtor Adjusted Rent

Price-to-Rent Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Sioux Falls, South Dakota Home Price-to-Rent Ratio History

Date Realtor
(Dollar Ratio)
Realtor Adjusted
(Dollar Ratio)
FHFA
(Index Ratio)
March 2014 20.12 16.79
December 2013 20.16 16.83 106.8
September 2013 20.78 17.34 106.9
June 2013 20.81 17.36 105.6
March 2013 19.55 16.31 105.0
December 2012 19.61 16.37 103.7
September 2012 19.61 16.37 102.6
June 2012 19.61 16.37 102.1
March 2012 19.61 16.37 102.0

Sioux Falls, South Dakota Home Rent-to-Mortgage Payment Ratio

The rent-to-mortgage payment ratio uses the adjusted rent for Sioux Falls against a 100% loan-to-value mortgage (30-year fixed) for the median price home using Realtor home sales statistics. It's a lot like a cap rate, but I find it more appealing in ratio form. A ratio of 1.0 means that annual rent is equivalent annual mortgage payments. Values less than 1.0 indicate rents are cheaper and values greater than 1.0 mean mortgage payments are cheaper. Beware, taxes are not considered here. The rent-to-mortgage payment ratio for Sioux Falls was 1.0 in March 2014.

Rent-to-Mortgage Payment Dollar Ratio: Realtor

Sioux Falls, South Dakota Home Rent-to-Mortgage Payment Ratio History

Date Realtor Adjusted Rent
(Dollar Ratio)
March 2014 1.00
December 2013 0.98
September 2013 0.95
June 2013 1.00
March 2013 1.13
December 2012 1.16
September 2012 1.13
June 2012 1.11
March 2012 1.07

Sioux Falls, South Dakota Inferred Affordable Mortgage

The inferred affordable mortgage value is determined by taking the median household income for Sioux Falls, South Dakota and calculating the mortgage 30% of that income could afford. Traditionally, 30% of income is the maximum amount a homeowner could use towards a home loan. Inferred affordable loan values are calculated from ACS median household income and average monthly mortgage rates.

Inferred Affordable Mortgage

Sioux Falls, South Dakota Inferred Affordable Mortgage History

Date Inferred Mortgage
February 2014 $261,406
January 2014 $257,420
December 2013 $256,513
November 2013 $262,651
October 2013 $264,851
September 2013 $255,610
August 2013 $256,513
July 2013 $259,248
June 2013 $268,688
May 2013 $286,656
April 2013 $289,882
March 2013 $285,592
February 2013 $287,012

1. Specifically, home prices are from the non seasonally adjusted FHFA all-transactions quarterly series. Dollar ratios are calculated using NAR metro prices when available. Rent and income data are from the Census ACS and are carried forward into the following year prior to release of the new data.