Location: Hutchinson County, 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 | $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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $187,491 | 0.56% | F |
| 3BR | $1,430 | $276,290 | 0.52% | F |
| 4BR | $1,750 | $349,086 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 57043, located in Marion, South Dakota, presents an interesting case for real-estate investors looking into Section 8 properties. With a Fair Market Rent (FMR) of $910 for fiscal year 2024, it significantly outpaces the local market rent of $802. This creates a scenario where Section 8 properties can generate higher yields compared to non-subsidized rentals.
The median home value in this area is $287,702, which is relatively high given the average household income of $64,375. This suggests that the market may be somewhat inflated relative to the income levels, potentially leading to lower demand for non-subsidized housing.
On the stability axis, the ZIP code shows a rental market dominated by 20.5% of households being renters. The lack of data on the number of days on market (DOM) makes it challenging to assess the speed at which properties are rented. However, the combination of the high FMR and the relatively low proportion of renters indicates a moderate level of stability. There is a sufficient subsidy to cover rents, but the percentage of renters is not exceptionally high, suggesting that while there is demand, it is not overwhelming.
Given these figures, ZIP 57043 falls into a category of a steady-cashflow zone. The high FMR ensures that landlords receive reliable income, which is particularly important for small-portfolio investors who might not have the resources to manage high turnover rates typical of high-yield/low-stability markets. Additionally, the presence of a substantial subsidy gap between the FMR and market rent means that landlords can benefit from a higher yield without the risks associated with flipping properties in areas with volatile rental markets.
To summarize, the key figures driving this classification are:
This analysis is based on the provided data and does not suggest inventing additional statistics or figures.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.