Location: Kingsbury County, SD | Metro: Kingsbury County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 57214 focuses on the potential rental income from Section 8 housing vouchers versus the market rent scenario, given the available data.
First, let's consider the Section 8 scenario. The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 57214 for fiscal year 2026 is set at $1,010 per month. This annualizes to $12,120 per year. Since the median home value is not available, we cannot provide a direct cap rate calculation. However, we can infer that if a property were rented under a Section 8 contract, the gross yield would be based solely on the annualized FMR. Given the low renter density of 3.3%, it is unlikely that all units in a property would be occupied by Section 8 tenants, thus reducing the overall gross yield.
Moving to the market rent scenario, there is insufficient data to determine the actual market rent for ZIP 57214. Without knowing the market rent, a precise cap rate cannot be calculated. However, the absence of a median home value and market rent suggests that there may be limited historical data available for this area, making it challenging to predict future market conditions accurately.
The implied gross yield from Section 8 contracts is clear and calculable, offering a stable but potentially lower return compared to market rents. The uncertainty around market rent in ZIP 57214 makes it difficult to assess whether the market yield would exceed the Section 8 yield. Given the 3.3% renter density, it is reasonable to assume that only a small portion of the population would be eligible for Section 8, which could impact the occupancy rates of properties accepting these vouchers.
In conclusion, while the Section 8 gross yield is known and consistent at $12,120 annually for a 2BR unit, the lack of market rent data leaves us unable to provide a direct comparison. For investors looking to enter ZIP 57214, the Section 8 option provides a reliable, albeit modest, income stream, whereas the market rent scenario remains speculative without further information.
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.