Location: Bon Homme County, SD | Metro: Bon Homme County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
U.S. Census Bureau data (2024)
The median income in ZIP code 57062 stands at $62,321, which is notably lower than the required income to comfortably afford the market rate rent of $775 per month. For context, a common rule of thumb is that housing costs should not exceed 30% of a household’s income. Applying this guideline, the median household would struggle to pay $775 monthly without significant financial strain.
Comparatively, the Fair Market Rent (FMR) set at $950 for metro FY 2026 is even higher, further emphasizing the affordability gap for renters in this area. This means that many households may find it challenging to meet the FMR without assistance, highlighting a potential need for rental subsidies or vouchers.
With 22.8% of the 2,484 population being renters, the competition among landlords could be fierce, especially if there is a high demand for affordable housing options. The disparity between the median income and both the market rate and FMR suggests that many tenants might be seeking subsidized housing to manage their living expenses effectively.
For landlords considering their strategy on voucher versus cash-pay tenants, the data points to a significant number of potential renters who may rely on vouchers to cover the higher cost of rent relative to their income. Accepting vouchers could provide a steady stream of tenants, though it comes with the trade-off of receiving a fixed payment rate. On the other hand, focusing on cash-paying tenants might limit the pool of available renters, given the financial constraints many face in this ZIP code.
The takeaway for landlords is that embracing a mix of both voucher and cash-pay strategies could be beneficial. While voucher payments are lower than the market rate, they ensure a reliable source of income. Cash-paying tenants, although fewer, might offer higher rents but require more effort in finding and retaining them. Landlords must weigh these factors carefully to optimize their rental portfolio in ZIP 57062.
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.