Location: Hamlin County, SD | Metro: Codington County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The ZIP code 57242 has a population of 320, with only 10.8% being renters. This indicates that the area is predominantly a homeowner-dominated zone rather than a renter-heavy neighborhood. The scarcity of renters suggests that the demand for Section 8 vouchers is likely to be limited.
The median household income in this area stands at $113,958, which provides a significant contrast to the market rent of $681 per month. To put this into perspective, the average rent accounts for approximately 2.2% of the local median income. This percentage is calculated by taking the monthly rent and dividing it by the annual median income, then multiplying by 12 to find the monthly proportion. In other words, typical rent consumes a very small portion of the local income, indicating that housing costs are relatively low compared to the earning capacity of residents.
However, when comparing the market rent of $681 to the Fair Market Rent (FMR) of $1,010, which is set for FY 2026 in the metropolitan area, it becomes evident that the actual rent in ZIP 57242 is below the FMR threshold. This discrepancy means that tenants utilizing Section 8 vouchers would have a surplus amount that they could potentially contribute towards rent, making the overall rental cost more manageable for them.
A landlord in ZIP 57242 can expect a tenant profile characterized by individuals who are likely to have a higher income relative to the rent they pay. These tenants will typically be well below the income limits for receiving Section 8 assistance, which allows them to possibly cover additional costs beyond what the voucher provides. Given the low number of renters and the high median income, landlords should prepare for a tenant pool that is financially stable and capable of meeting their rental obligations without heavy reliance on government subsidies.
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.