South Dakota Programs

Government Grants & Incentives for Real Estate Investors in Sioux Falls

Sioux Falls' growing economy and South Dakota Housing Development Authority's LIHTC program offer opportunities in a state with no income tax. The city's TIF districts support affordable housing development.

5 designated tracts
Opportunity Zones
$1,038
Section 8 (2-BR)
LIHTC
Tax Credits Available
4
Local Programs

State Housing Finance Agency

South Dakota Housing Development Authority (SDHDA)

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Public Housing Authority

Sioux Falls Housing and Redevelopment Commission

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Local Programs

Sioux Falls Government Incentive Programs

These programs are available specifically to investors and developers in the Sioux Falls, SD market.

SDHDA LIHTC Program

South Dakota allocates LIHTC credits through SDHDA for affordable multifamily development.

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Sioux Falls TIF Districts

Tax increment financing districts supporting affordable housing and infrastructure development.

City of Sioux Falls CDBG/HOME

Federal community development funds for affordable housing production and neighborhood improvement.

SDHDA Housing Opportunity Fund

State revolving loan fund providing gap financing for affordable housing development.

LIHTC Tax Credits in South Dakota

Low-Income Housing Tax Credits are the largest source of affordable housing financing in the U.S. In South Dakota, credits are allocated by SDHDA.

How LIHTC Works

  • Dollar-for-dollar federal tax credit over 10 years
  • 9% competitive credits for new construction
  • 4% credits paired with tax-exempt bonds
  • 15-year compliance period for affordable rents

South Dakota Allocator

Credits are allocated by SDHDA through their Qualified Allocation Plan (QAP), which outlines scoring criteria and priorities.

View SDHDA LIHTC Program
Investor Tips

Why Invest in Sioux Falls?

No state income tax maximizes investment returns

Growing mid-market city with increasing housing demand

Limited competition for LIHTC credits compared to larger states

TIF districts support development in emerging areas

Finance Government-Incentivized Properties in Sioux Falls

FundNow Capital provides DSCR loans, bridge financing, and portfolio loans that complement government incentive programs in Sioux Falls.

DSCR Loans

Qualify using Section 8 rental income — government-backed rents strengthen your DSCR ratio.

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Bridge Loans

Short-term financing to acquire and stabilize properties before permanent LIHTC or agency financing.

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Portfolio Loans

Finance multiple properties in Sioux Falls's Opportunity Zones under a single loan structure.

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Frequently Asked Questions

Get Financing for Investment Properties in Sioux Falls

Tell us about your Sioux Falls investment plans. We'll match you with the best financing options within 24 hours.

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