Section 8 Fair Market Rent (FMR) for ZIP 57212 - 2027

Location: Lake County, SD | Metro: Brookings County, SD

Investment Score for ZIP 57212

Monthly Rent (2BR)

$1,060

Median Price (2BR)

$249,641

1% Rule

0.42%

Annual Yield

5.1%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$760
1 Bedroom	$820
2 Bedrooms	$1,060
3 Bedrooms	$1,320
4 Bedrooms	$1,680
5 Bedrooms	$1,949
6 Bedrooms	$2,183
7 Bedrooms	$2,358
8 Bedrooms	$2,476

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,060	$249,641	0.42%	F
3BR	$1,320	$354,578	0.37%	F
4BR	$1,680	$466,444	0.36%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,819

Median Household Income

$93,750

Housing Units

1,088

Renter Percentage

17.3%

Occupancy Rate

70.8%

Renter Occupied

133

ZIP code 57212, located in South Dakota, offers a stable and modest rental market environment for landlords and small-portfolio investors. The area is characterized by its blend of rural charm and suburban accessibility, providing a steady demand for housing without the volatility often seen in larger urban centers.

The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, indicating a benchmark that landlords should aim to meet or slightly exceed to remain competitive.
The actual market rent, based on recent Census American Community Survey (ACS) data, stands at $810. This suggests that while the FMR provides a target, current rents are below this level, leaving room for potential increases.
The median home value in the area is $309,696, which reflects a moderate cost of living and property investment, suitable for those looking to enter the market without the high capital requirements of more expensive regions.
Renters make up 17.3% of the population, a figure that highlights a significant but not overwhelming demand for rental properties, suggesting a balanced market with opportunities for both ownership and rental investments.
The median income of residents is $93,750, which supports a reasonable ability to pay higher rents, especially if landlords can offer well-maintained and desirable properties.

Synthesizing these points, investors in ZIP code 57212 can expect a market that is predictable and moderately profitable. With current rents below the FMR and a median income that supports rental payments, there is a clear opportunity for landlords to increase their rental rates slightly. The modest median home value also indicates a manageable entry point for property purchases, making it an attractive location for those seeking to build a small portfolio of rental properties. The relatively low renter share suggests a market where owning a home is still common, but there remains a consistent need for quality rental options, ensuring steady occupancy rates for well-managed properties.

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.