Location: Brookings County, SD | Metro: Lincoln County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The ZIP code 56136 stands out due to its unique mix of low rental occupancy and relatively high median income and home values. With only 16.7% of residents renting, it indicates a predominantly owner-occupied community. However, the median income of $68,281 and median home value of $224,373 suggest that those who do rent may struggle to find affordable housing options.
For landlords and small-portfolio investors, the dynamics of Section 8 vouchers in ZIP 56136 are crucial. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, whereas the current market rent, based on Census ACS data, is $750. This discrepancy means that landlords accepting Section 8 vouchers can potentially charge more than the average market rate, making it an attractive option for those looking to secure steady rental income.
Given the data, ZIP 56136 appears to be a stable market. The high median income and home values indicate a financially secure population, which bodes well for the reliability of tenants. Additionally, the low rental occupancy suggests that there is room for growth in the rental market, particularly for properties that cater to lower-income families through Section 8 programs. Landlords should consider the potential benefits of participating in the Section 8 program, as it can provide a reliable tenant base while also allowing for rents above the current market average.
To summarize, ZIP 56136 offers a stable environment with a mix of financial security and opportunity for landlords. The ability to charge $970 under the FMR for a market where the average rent is $750 presents a significant advantage. This ZIP code is likely to remain stable, providing a consistent and predictable rental market for property owners.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.