Location: Codington County, SD | Metro: Codington County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 57245, located in Codington County, SD, presents unique challenges and opportunities for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1,020 per month for the fiscal year 2026, covering the entire metro scope. However, the current market rent data is not available, making it difficult to directly compare the FMR against actual market rates.
Based on the HUD FMR alone, landlords can expect that voucher tenants will generally cashflow at this rate, assuming the market rent does not significantly exceed $1,020. This means that investors who focus on properties within or slightly above this rent threshold can maintain steady cash flows without the need for premium units, which typically command higher rents. The lack of premium unit necessity reduces renovation costs and speeds up the acquisition process for new investors.
The median home value data is also not available for ZIP 57245, which prevents us from calculating an exact rent-to-price ratio. However, even without these figures, it's clear that the FMR provides a solid foundation for rental income expectations. In markets where home values are known, a lower rent-to-price ratio often indicates better potential for property appreciation. While we cannot quantify this relationship here, the stability of the FMR can still offer a reliable basis for investment decisions.
Regarding the days on market (DOM) and price-cut share, both pieces of data are currently unavailable. These metrics would normally provide insights into the local real estate market's health and the balance between renting and buying. For instance, a high DOM might suggest a buyer's market, whereas a low DOM could indicate a seller's market. Similarly, a high percentage of homes needing price reductions before selling points to a sluggish market, while a low percentage suggests robust demand. Despite the lack of these specific indicators, the overall trend in the area should be monitored to understand how rent-versus-buy dynamics evolve.
The strongest angle for investors in ZIP 57245 is likely stability. With the HUD FMR providing a consistent rental income benchmark, investors can count on predictable cash flows, which is particularly valuable in a market with limited recent data. Stability allows for long-term planning and investment growth through steady rental income rather than speculative appreciation or short-term cash flow gains.
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.