Section 8 Fair Market Rent (FMR) for ZIP 57219 - 2027

Location: Day County, SD | Metro: Day County, SD

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$750
1 Bedroom	$910
2 Bedrooms	$1,070
3 Bedrooms	$1,480
4 Bedrooms	$1,690
5 Bedrooms	$1,960
6 Bedrooms	$2,195
7 Bedrooms	$2,371
8 Bedrooms	$2,490

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

552

Median Household Income

$51,900

Housing Units

289

Renter Percentage

39.0%

Occupancy Rate

81.7%

Renter Occupied

When considering whether to invest in ZIP code 57219 with a focus on Section 8 properties, follow this decision tree:

Does the Fair Market Rent (FMR) of $930 for the metro area in fiscal year 2026 clear debt service on a property?
- If the FMR does not cover your debt service costs, the answer is No. You cannot sustain a loss on each rental unit.
- If the FMR covers your debt service costs, proceed to the next question.
Is the market rent of $1,043 (as per Census ACS data) above, at, or below the FMR?
- If the market rent is above the FMR, you can potentially charge a higher rent to non-Section 8 tenants, making the investment viable even if Section 8 rates are lower. The answer is It Depends.
- If the market rent is at or below the FMR, the answer is No. This indicates that there's little to no premium over Section 8 rates, reducing the attractiveness of the investment.
Are 39.0% of residents renters and is the days on market (DOM) sufficient to ensure enough demand?
- If the percentage of renters is high and the DOM is low, indicating quick turnover, the answer is Yes. There is a strong demand for rental properties.
- If the percentage of renters is low or the DOM is high, the answer is No. Demand may not be robust enough to support a Section 8 portfolio.

The Fair Market Rent for ZIP 57219 is set at $930 for fiscal year 2026. This figure must first exceed your debt service costs to make financial sense. Given that the average market rent is $1,043, which is higher than the FMR, there could be opportunities to diversify your tenant base beyond just Section 8 participants, thereby increasing profitability. However, the viability hinges on the percentage of renters and the speed at which properties turn over. With 39.0% of residents being renters, there is a significant portion of the population interested in leasing properties. The days on market figure is not available, but a low DOM would further confirm the strength of rental demand in this area. A high DOM would suggest challenges in finding tenants promptly, affecting cash flow and investment returns.

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.