South Dakota Rental Property ROI Calculator
Free South Dakota rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using South Dakota's 1% property tax rate.
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Pre-filled: South Dakota median home price
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Pre-filled: HUD FMR data
Pre-filled: Tax Foundation
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Monthly Cash Flow
Estimated • Based on your inputs
Annual Cash Flow
-$16,154.12
Cash-on-Cash Return
-21.54%
Detailed Breakdown
Investment Projection
10-Year Projection
| Year | Cash Flow | Cumulative | Equity | Total Return |
|---|---|---|---|---|
| 1 | -$16,154 | -$16,154 | $77,629 | -$3,725 |
| 2 | -$15,963 | -$32,117 | $90,543 | -$6,774 |
| 3 | -$15,768 | -$47,885 | $103,965 | -$9,120 |
| 4 | -$15,569 | -$63,454 | $117,918 | -$10,736 |
| 5 | -$15,366 | -$78,821 | $132,428 | -$11,592 |
| 6 | -$15,159 | -$93,980 | $147,521 | -$11,658 |
| 7 | -$14,948 | -$108,928 | $163,226 | -$10,902 |
| 8 | -$14,733 | -$123,661 | $179,573 | -$9,289 |
| 9 | -$14,514 | -$138,175 | $196,592 | -$6,783 |
| 10 | -$14,290 | -$152,465 | $214,318 | -$3,347 |
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
This calculator uses standard real estate investment analysis to determine the return on a rental property in South Dakota. It factors in the mortgage payment (using a standard amortization formula), property taxes at South Dakota's effective rate of 1%, insurance, vacancy loss, maintenance reserves, and property management fees. The cap rate is calculated as Net Operating Income divided by purchase price. Cash-on-cash return measures annual cash flow relative to total cash invested (down payment + estimated closing costs). The 10-year projection assumes 3% annual appreciation and 2% annual rent increases.
Key State Information
South Dakota has an effective property tax rate of 1%, which is above the national average of 0.90%. South Dakota has no state income tax, which can improve your net rental income.
Example Calculation
Let's walk through a realistic rental property analysis in South Dakota.
Suppose you're buying a single-family home for $326,000 — South Dakota's median home price with 25% down ($81,500). Your loan amount is $244,500 at 7.0% interest for 30 years, giving a monthly mortgage payment of approximately $1,627. You expect to rent the property for $1,094/month — South Dakota's median 2BR fair market rent. Monthly expenses include property taxes at 1% (~$272), insurance (~$136), an 8% vacancy reserve, 10% maintenance, and 10% property management, totaling approximately $2,244.
Result: Monthly cash flow: -$1,238 (cash-on-cash return of about -16.3%, cap rate 1.4%). This property would be cash-flow negative at these numbers. You'd need to either negotiate a lower purchase price, find a property with higher rent potential, or increase your down payment to reduce the mortgage. This illustrates why running the numbers before buying is critical — many properties that "look good" actually lose money monthly.
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StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
What is the average property tax rate in South Dakota?
South Dakota's effective property tax rate is 1%, which means on a $326,000 home, you'd pay approximately $3,260 per year in property taxes.
Is South Dakota a good state for rental property investment?
South Dakota offers a median home price of $326,000 with 2BR rents averaging $1094/month. Property tax rates are moderate. Use this calculator with your specific numbers to determine the actual ROI.
What is a good cap rate for rental property in South Dakota?
A cap rate of 5-8% is generally considered good for rental properties. In South Dakota, cap rates vary significantly by market. Urban areas tend to have lower cap rates (3-5%) but more consistent appreciation, while rural areas may offer higher cap rates (7-10%) with less growth potential.
How much do I need to invest in a rental property in South Dakota?
For a median-priced home in South Dakota ($326,000), a 20% down payment would be $65,200. Including estimated closing costs of $9,780, you'd need approximately $74,980 in cash.
Does South Dakota have landlord-friendly laws?
South Dakota has moderate landlord-tenant laws. Research specific local regulations before investing.
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