Location: Deuel County, SD | Metro: Deuel County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 57237, located in Deuel County, South Dakota, reveals critical insights for landlords and small-portfolio investors considering investment in this area.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,070. However, the current market rent, as per Census ACS data, stands significantly lower at $461. This disparity indicates that the potential rental income is less than what might be expected based on FMR guidelines, suggesting that landlords may need to adjust their expectations or strategies to align with the local market conditions.
Regarding the affordability of acquisitions, the median home value in ZIP 57237 is $450,750. Given that the data does not provide information on the number of days on market (DOM) or the percentage of homes that required price cuts before selling, it's challenging to assess the liquidity and negotiation dynamics of the housing market. Nonetheless, the median home value suggests that acquiring properties in this area would require a substantial financial commitment.
The third question concerns tenant demand. With a total population of 731 and only 9.2% of residents being renters, the pool of potential tenants is limited. This low renter share implies that landlords might face challenges in finding enough tenants to fill available units, particularly if they are pricing their rentals closer to the FMR rather than the market rate.
Verdict: Investing in ZIP 57237 presents a mixed scenario. While property values are high, indicating a potentially stable asset base, the low renter share and significant gap between FMR and market rent suggest that generating rental income could be challenging. Landlords must carefully consider these factors and possibly focus on offering competitive rental rates to attract tenants, despite the higher costs of acquisition. The limited tenant demand requires strategic planning and a clear understanding of the local rental market dynamics to ensure profitability and occupancy levels.
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.