Location: Hamlin County, SD | Metro: Brookings County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 57220, set at $960 for metro fiscal year 2026, is the maximum amount the federal government will pay landlords participating in the Section 8 Housing Choice Voucher program. This means that if you become a Section 8 landlord, your tenant's voucher will cover up to $960 per month towards rent. However, it's important to note that this figure does not represent the total rent you can charge; it's the payment standard.
To put this into perspective, the average rent in ZIP 57220 is $725 according to the latest Census American Community Survey (ACS) data. This indicates that the FMR is above the market rate, which can be beneficial for landlords looking to offset the costs associated with renting to Section 8 tenants. The higher payment standard helps ensure that landlords receive a competitive rate for their properties.
The demand for rentals in this area is significant, with 18.7% of residents being renters. This suggests a steady pool of potential tenants who may rely on Section 8 vouchers to find housing. If you're considering acquiring a property in ZIP 57220 for a Section 8 rental, an average acquisition cost would be around $336,308. This price reflects the typical cost of purchasing a home in this area, which could be a reasonable investment given the support from the Section 8 program.
Before making a decision to enter the Section 8 market, it's crucial to verify that the property meets all local and federal housing quality standards known as Housing Quality Standards (HQS). These standards ensure that the rental unit is safe and livable for tenants. Failure to meet these criteria can result in penalties or removal from the program.
In summary, the FMR of $960 provides a solid financial backing for landlords in ZIP 57220, where the average rent is $725. With a renter share of 18.7%, there's a good chance of finding qualified tenants. An acquisition cost of approximately $336,308 should be considered against the ongoing rental income and other benefits of the Section 8 program. Ensure your property complies with HQS to avoid any issues down the line.
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.