Location: Lake County, SD | Metro: Sioux Falls, SD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 57016 in fiscal year 2024 is set at $1,010. This figure represents the payment standard used by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 housing voucher program. It's important to note that this is not the amount you can charge for rent; rather, it's the maximum amount that HUD will pay on behalf of eligible tenants.
In comparison, the average market rent in ZIP 57016, according to the Census Bureau's American Community Survey (ACS), is $1,146. This indicates that the FMR is slightly below the local market rate, which could affect your decision to participate in the Section 8 program if you're looking to maximize your rental income.
The renter share in this area is 5.7%, meaning that approximately 5.7% of the population are renters. This suggests a relatively low demand for rental properties compared to other areas, but it still provides a stable pool of potential tenants who might benefit from the Section 8 program. Given the median home value and other factors, an average acquisition cost for a property in this ZIP code is around $363,678.
Before you decide to take the plunge into Section 8 rentals, ensure that your property meets all the required standards for the program. This includes passing a thorough inspection to meet health and safety criteria. These standards are set to ensure that the living conditions for tenants are adequate, and failing to meet them could result in reduced payments or even disqualification from the program.
In summary, while the FMR of $1,010 is lower than the local average rent of $1,146, the Section 8 program can still be a viable option for landlords in ZIP 57016, especially given the acquisition cost of approximately $363,678. However, it is crucial to verify that your property complies with all necessary regulations to avoid any issues once enrolled in the program.
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.