Location: Hutchinson County, SD | Metro: Hutchinson County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
In ZIP code 57052, the Section 8 program operates under the parameters set by the $940 SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment during fiscal year 2026. This figure represents the maximum amount that the Housing Choice Voucher Program will pay towards a tenant's rent in this specific ZIP code. However, it's important to understand that this does not equate to the total rent a landlord can expect to receive.
The local market rent for a two-bedroom apartment in ZIP 57052 is significantly lower at $578, according to the latest Census ACS data. This disparity highlights the financial dynamics landlords face when participating in Section 8. The actual amount a landlord receives from a voucher is calculated by adding the tenant's portion of the rent to the utility allowances and subtracting any excess over the SAFMR.
The tenant's portion of the rent is determined based on their income, typically set at 30% of their adjusted monthly income. If the tenant's share plus the utility allowance exceeds the SAFMR of $940, the landlord must accept the SAFMR as the upper limit for the government subsidy. Conversely, if the sum is less than $940, the landlord can charge up to the SAFMR.
To illustrate, let's assume a hypothetical scenario where the tenant's portion is $300 and the utility allowance is $150. In this case, the landlord would receive $450 from the tenant and $150 from the utility allowance, totaling $600. Since this is below the SAFMR, the landlord could charge the full $940, resulting in a reimbursement gap of $340 ($940 - $600).
If the tenant's portion and utility allowance together exceed $940, say $350 and $200 respectively, making a total of $550, the landlord would still only be reimbursed up to $940. Thus, the landlord would need to adjust the rent accordingly to avoid losing money.
Given the local market rent of $578, landlords in ZIP 57052 should expect a reimbursement gap. The gap between the SAFMR and the market rent is $362 ($940 - $578), meaning landlords who participate in Section 8 in this ZIP code would have to cover an additional $362 per month to reach the market rate for a two-bedroom apartment.
In summary, landlords in ZIP 57052 should factor in the reimbursement gap when deciding whether to accept Section 8 vouchers. The gap stands at $362, reflecting the difference between the SAFMR and the local market rent.
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.