Location: Sioux Falls, SD | 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 | $870 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $300,513 | 0.38% | F |
| 3BR | $1,560 | $384,862 | 0.41% | F |
| 4BR | $1,890 | $411,529 | 0.46% | F |
| 5BR | $2,192 | $566,954 | 0.39% | F |
U.S. Census Bureau data (2024)
The Section 8 real estate analysis for ZIP code 57033, located in Hartford, SD, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area in fiscal year 2024 is set at $1090, while the market rent, as indicated by ZORI, stands at $1280. This represents a difference of $190, or approximately 17.4%, indicating that landlords can expect to receive less per unit when renting to voucher tenants compared to the open market.
In Hartford, SD, where the median home value is $400,346 and the median income is $105,560, the rental market is relatively modest with only 15.0% of residents being renters. Despite this, the disparity between FMR and market rent suggests that landlords who choose to participate in the Section 8 program will be renting units below the prevailing market rate. This can impact profitability, especially considering that the FMR is lower than the actual market rent. Landlords must weigh the benefits of guaranteed rental payments against the potential loss of income from renting at market rates.
The cost of housing voucher tenants below open-market rates is a critical consideration for landlords and small-portfolio investors. In ZIP 57033, the $190 shortfall per month means that landlords are effectively subsidizing the difference between what the government pays and the market rate. While this may be seen as a social responsibility, it also means that landlords must ensure their properties are well-maintained and profitable enough to cover the lower rental income. For investors looking to maximize yield, this gap highlights the importance of understanding the local rental market and the implications of participating in the Section 8 program.
To summarize, the FMR of $1090 is significantly lower than the market rent of $1280 in ZIP 57033, representing a 17.4% discount. Given the specific economic conditions of Hartford, SD, landlords should carefully evaluate whether the stability of rental income from voucher tenants outweighs the financial benefits of renting at market rates. This analysis provides a clear framework for decision-making in the local rental market.
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.