Market Insights
Southeast Sioux Falls Rental Market Report: 2-Bedroom Rents Up 4.7%
Two-bedroom apartments in southeast Sioux Falls (57103, 57108) now lease at a $1,178 median in 33 days, with vacancy at 3.5%. Here is what owners and renters should know.
Southeast Sioux Falls — ZIP codes 57103 and 57108 in Minnehaha County — is running tight. Two-bedroom apartments, the deepest segment of inventory in this part of town, are leasing faster and for more money than they were a year ago.
The headline numbers
- Median 2-bedroom rent: $1,178 per month (typical range $1,131–$1,225)
- Year-over-year change: up 4.7%
- Average days to lease: 33 days, down 7.9% from last year
- Vacancy rate: 3.5%
- Rental saturation: 12.8% of local housing
A vacancy rate of 3.5% sits below what most people would call a balanced market. Fewer empty units plus faster leasing is the classic signature of steady demand — not a spike, just consistent pressure.
How each size is performing
| Bedrooms | Median rent | Year over year | Days to lease |
|---|---|---|---|
| 1-BR | $921 | down 2.3% | 35 |
| 2-BR | $1,178 | up 4.7% | 34 |
| 3-BR | $1,685 | up 7.6% | 35 |
The spread tells the story. One-bedrooms have softened slightly, three-bedrooms have climbed the most, and the two-bedroom sits in the middle with the broadest appeal — affordable enough for a single earner with a roommate, roomy enough for a small family or someone working from home.
For context, the two-bedroom median has moved from $1,174 to $1,159 to $1,178 across recent readings. That is stability with a gentle upward tilt, not volatility.
What renters are paying relative to income
Median household income in this submarket is $85,514. At current asking rents, that works out to:
- 1-BR: 13% of income
- 2-BR: 17% of income
- 3-BR: 24% of income
The overall affordability index is 15.3%, up 4.7% from a year ago. Rent is taking a slightly bigger bite than it did last summer, but the local income base still comfortably supports current pricing — which is a big reason turnover here stays limited rather than forced.
What this means if you own rentals here
This is a landlord-leaning market, but a selective one. Renters have the income to pay for the right unit, and they are choosing on quality and fit rather than settling for whatever is open. In practice that means:
- Price to the segment, not the wish. Well-positioned two-bedrooms move in about a month. Overreach on price and you trade rent gains for vacant weeks.
- Condition is the differentiator. With low vacancy, the units that sit are usually the tired ones, not the expensive ones.
- Renewals are worth protecting. A retained tenant beats 33 days of turnover every time.
What this means if you are renting
Good two-bedrooms in 57103 and 57108 do not linger. Have your application materials ready, tour quickly, and be prepared to decide within a few days of seeing something you like.
About this briefing
Luke Properties has managed residential and commercial real estate in Sioux Falls since 2007, with 450+ doors under management and 98% occupancy. If you own a rental in southeast Sioux Falls and want to know where your property sits against these numbers, give us a call at 605.370.5649 or email info@luke.properties.
Figures describe apartment 2-BR rentals in Southeast Sioux Falls for July 2026. They reflect median asking rents drawn from listing and public data sources, are informational only, and are not an appraisal, a valuation, or advice of any kind.
Frequently asked
Quick answers
What does a 2-bedroom apartment cost in southeast Sioux Falls?
The median asking rent is $1,178 per month as of July 2026, 4.7% higher than the same month a year earlier. Most listings fall between $1,131 and $1,225.
How long does it take to lease a rental in southeast Sioux Falls?
Homes in the featured segment lease in an average of 33 days. Across bedroom counts, 1-BR averages 35 days, 2-BR averages 34 days, and 3-BR averages 35 days.
Is southeast Sioux Falls a tight rental market right now?
Yes. The vacancy rate is 3.5%, below the range conventionally described as balanced, and it has decreased over the past twelve months.
How much household income do renters need?
Median household income is $85,514. At the median asking rent, annual rent comes to $14,136, or about 17% of that income.
How have rents changed over the past year?
Over the trailing twelve months, 1-BR rents are 2.3% lower, 2-BR rents are 4.7% higher, and 3-BR rents are 7.6% higher.
Which ZIP codes does this report cover?
It covers 57103 and 57108 in Minnehaha County, South Dakota, with apartment 2-BR as the featured segment because it carries the deepest inventory in this submarket.
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