Location: Rock County, MN | Metro: Sioux Falls, SD HUD Metro FMR Area
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 | $780 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $251,664 | 0.42% | F |
| 3BR | $1,430 | $367,842 | 0.39% | F |
| 4BR | $1,750 | $456,777 | 0.38% | F |
U.S. Census Bureau data (2024)
The ZIP code 57030 in South Dakota presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, with the market rent at $724 being notably lower than the Fair Market Rent (FMR) of $910 for FY 2024. This discrepancy suggests that tenants might be attracted to Section 8 properties due to the lower cost, leading to higher turnover rates as they seek better deals or move up to market-rate housing once their financial situation improves.
Vacancy exposure is another critical issue. The average Days on Market (DOM) for rental properties in this area is currently not available, which makes it difficult to predict how long a property might remain vacant between tenants. High vacancy rates can significantly impact cash flow, especially when combined with the potential for frequent turnover.
Deferred maintenance is also a risk factor. With a typical home value of $387,348 and a median income of $79,375, there may be limited funds available for regular upkeep and repairs. Landlords must ensure they have a dedicated budget for maintaining the property to comply with Section 8 requirements and avoid costly delays.
However, these risks are tempered by the high renter share in the area, which stands at 23.5%. A larger proportion of renters generally translates into higher demand for rental properties, including those accepting Section 8 vouchers. This demand can help mitigate the risk of vacancies and provide a steady stream of tenants.
In conclusion, the verdict for a first-time Section 8 landlord in ZIP 57030 is moderate risk. While there are significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter density offers a counterbalance that can support a successful investment strategy with careful management and planning.
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.