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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $252,656 | 0.42% | F |
| 3BR | $1,450 | $294,929 | 0.49% | F |
| 4BR | $1,760 | $345,404 | 0.51% | F |
| 5BR | $2,042 | $438,576 | 0.47% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 57006, located in Brookings, South Dakota, reveals a market that is balanced between yield potential and stability. With a Fair Market Rent (FMR) of $950 for the fiscal year 2026, the metro area presents a rental yield that is significantly lower than the market rent of $1,434. This difference suggests a potential for higher cash flow if landlords can secure rents closer to the market rate. However, the median home value of $312,200 indicates that while property values are not excessively high, they are also not at the low end, which could affect the cost of entry for new investments.
The stability indicators provide further insight into the investment climate. The 48.3% rental rate is a key figure, showing a substantial portion of the population relies on renting, which supports a steady demand for rental properties. The absence of data on days on market (DOM) makes it difficult to assess the speed of property turnover, but the average household income of $66,337 suggests that there is enough economic stability to support rental payments at the FMR level.
To summarize, ZIP 57006 is not a high-yield/low-stability market typical of "flip-style" investments, where quick turnovers and speculative pricing are common. Instead, it leans towards a steady-cashflow zone, with the potential for above-average returns if landlords can achieve market rents. The combination of a moderate rental rate differential and a stable income base points to a market where long-term, consistent cash flow is more likely than short-term, high-risk, high-reward scenarios.
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.