Location: Moody County, SD | Metro: Brookings County, SD
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $291,657 | 0.35% | F |
| 3BR | $1,410 | $292,423 | 0.48% | F |
| 4BR | $1,700 | $325,870 | 0.52% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 57002, located in Aurora, SD, within the Moody County, SD metro area, reveals several key points regarding its viability for rental investments.
The rent math does not work in favor of investors. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $930, while the actual market rent based on Census ACS data stands at $843. This discrepancy indicates that landlords would be renting below the FMR, which could lead to reduced profitability.
Acquisition of properties appears to be relatively affordable. With a median home value of $289,645, potential investors can find homes within a reasonable budget. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts suggests that there might be limited recent sales activity, making it harder to gauge the current market's responsiveness to pricing adjustments.
Tenant demand is present but modest. The ZIP code has a population of 1,674, with 22.8% of residents being renters. While this represents a significant portion of the local housing market, the overall number of potential tenants is limited due to the small population size.
Verdict: ZIP 57002 offers an affordable entry point into property acquisition, with median home values at $289,645. However, the lower market rent of $843 compared to the FMR of $930 means that landlords will not fully capitalize on the higher rental standards set by the government. Additionally, the modest tenant demand suggests that while there are renters, the total number is constrained by the small population base. For landlords and small-portfolio investors looking for high returns, this ZIP code may not offer the best opportunity; however, it remains a stable option for those seeking long-term, low-risk investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.