Location: Roberts County, SD | Metro: Grant County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 57227, located in Roberts County, South Dakota, reveals several key points that are crucial for landlords and small-portfolio investors.
The rent math does not work favorably in this area. The Fair Market Rent (FMR) for the metro region, set at $1,050 for fiscal year 2026, is the only figure available. However, without a comparison to the actual market rent, it's challenging to assess whether this FMR is realistic or inflated. This uncertainty can lead to difficulties in setting competitive rental prices.
Regarding acquisition affordability, the data is incomplete. With no median home value provided, it's difficult to gauge the cost of purchasing properties. Similarly, the lack of days on market (DOM) and percentage of homes that have been discounted indicates an absence of information on how quickly homes sell and if there are any ongoing price adjustments in the market. This makes it hard to predict the ease or difficulty of acquiring properties at affordable prices.
Tenant demand in ZIP 57227 is relatively low. The area has a total population of 562, with only 12.7% being renters. This translates to approximately 71 potential tenants, which is a limited pool compared to larger metropolitan areas. Given the small number of renters, landlords might struggle to find enough tenants to fill their properties, especially considering the limited data on market rents and property values.
Verdict: ZIP 57227 presents significant challenges for landlords and small-portfolio investors. The incomplete data on market rents and property values complicates the decision-making process regarding investment. Additionally, the low tenant demand suggests that filling vacancies could be problematic. Unless there is substantial confidence in other factors not covered here, such as employment stability or local amenities, the risks outweigh the benefits in this ZIP code.
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.