Is Watertown, SD a good place to invest in rental property?

Watertown, SD has a median modeled monthly cash flow of $-1,174 and a median cap rate of 2.3%, on a median sold price of $285,000. Prices changed +1.5% year over year.

What is the average cap rate in Watertown, SD?

The median cap rate across recently sold homes in Watertown, SD is 2.3%, based on CashFlowRE's rent and expense modeling.

What is the median home price in Watertown, SD?

The median sold price in Watertown, SD is $285,000 (about $137 per square foot).

Investing in Watertown, SD Real Estate

A data-driven snapshot of the Watertown, SD rental-property market, built from recently sold homes and CashFlowRE's per-listing investment modeling — median price, cap rate, monthly cash flow, appreciation and inventory — so you can judge the market before you ever open a listing.

$285,000Median sold price

$137Median $/sqft

2.3%Median cap rate

$-1,174Modeled cash flow / mo

+1.5%Appreciation YoY

7.1Months of supply

213Active listings

358Sold (last 12 mo)

What the Watertown numbers say

In Watertown, SD, the median home sold for $285,000 (about $137 per square foot), and the typical deal models out to a 2.3% cap rate with a median $-1,174 of monthly cash flow. Sold prices moved +1.5% over the past year. Inventory sits at about 7.1 months of supply — a looser, buyer-friendly market. These are medians across recorded sales; individual properties vary widely, which is exactly what CashFlowRE scores listing by listing.

Other South Dakota markets to compare

See Watertown cash-flowing listings

CashFlowRE ranks every for-sale home in Watertown, SD by cap rate, cash-on-cash return, DSCR and monthly cash flow — so the best rental deals rise to the top. Create a free account to screen Watertown deals, or browse the national market data.