Location: Yankton County, SD | Metro: Sioux Falls, SD HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 57045, located in Yankton County, SD, presents a unique opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for this area in fiscal year 2024 is set at $910. In comparison, the Census ACS reported a market rent of $506, indicating that voucher tenants can indeed provide positive cash flow at the HUD FMR rate.
To be precise, the difference between the HUD FMR and the actual market rent suggests that voucher tenants will cashflow at the FMR rate, meaning landlords can expect a substantial financial benefit. This is particularly advantageous given the lower market rent, which is significantly below the HUD FMR threshold.
The median home value for ZIP 57045 is not available, making it difficult to calculate a traditional rent-to-price ratio. However, the lack of a median home value implies that the rental market might be more prominent than the buying market, which could affect the overall investment strategy. Since there is no data on the day median DOM (Days on Market) and the percentage of price-cut shares, we cannot fully assess the rent-versus-buy dynamics, but the strong cash flow potential is evident.
The most compelling angle for investors in this market is cash flow. With voucher tenants paying a rate well above the local market average, landlords can expect steady and reliable income without the need for premium units. This makes ZIP 57045 an attractive location for those looking to maximize their monthly returns through Section 8 participation.
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.