Location: Moody County, SD | Metro: Moody 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 | $720 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $155,553 | 0.66% | D |
| 3BR | $1,370 | $223,549 | 0.61% | D |
| 4BR | $1,720 | $270,114 | 0.64% | D |
U.S. Census Bureau data (2024)
The ZIP code 57028 encompasses the entirety of Flandreau, South Dakota, a small town with a total population of 3,450 residents. Approximately 34.9% of these residents are renters, indicating a modest demand for rental properties. The median household income in Flandreau stands at $72,798, which suggests a middle-class community. The median home value in the area is $222,537, reflecting the overall economic status of the town.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for a one-bedroom apartment in the metro area for fiscal year 2026 is set at $940. In contrast, the current market rent, as per the Census American Community Survey (ACS), is $681 for a similar unit. This discrepancy between the FMR and the actual market rent highlights an opportunity for Section 8 investors, as the government-subsidized rents can exceed the local market rates, providing a stable and potentially profitable income stream.
Given the demographic and economic context of Flandreau, it would be well-suited for a hands-off voucher operator. The relatively low market rent compared to the FMR means that landlords can benefit from the guaranteed payments without needing to actively manage property improvements or tenant selection. However, for those interested in a more hands-on approach, there is potential to add value through property upgrades, especially in areas where the median home value is lower than the national average. This could attract higher-income tenants or improve the overall desirability of the units, leading to increased rents and a better return on investment.
In summary, ZIP 57028 offers a balanced environment for Section 8 investors, with a clear advantage in the form of higher subsidized rents. Whether pursuing a passive strategy or looking to engage in value-add activities, the economic conditions in Flandreau present opportunities for steady income and potential growth.
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.