Location: Marshall County, SD | Metro: Marshall County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
The analysis for ZIP 57247, which encompasses Lake City, SD, reveals a significant gap between the Fair Market Rent (FMR) and the market rent. The FMR for the metro area in fiscal year 2026 is set at $980. However, recent data indicates that the market rent for properties in this ZIP code typically ranges from $500 to $749 per month, including utilities. This discrepancy highlights a 24.2% to 59.2% difference between the FMR and the actual market rent.
Given that the FMR exceeds the market rent, it is evident that voucher tenants can be a yield play for landlords and small-portfolio investors. The FMR of $980 is higher than the typical market rent, making it financially beneficial to accept Section 8 tenants. This strategy allows landlords to receive a higher rent payment than they would in the open market, thereby increasing their overall yield.
The broader context of ZIP 57247 includes a rental market where only 11.5% of residents are renters, and the median home value stands at $323,011. With a median income of $50,455, the rental market is relatively small compared to homeownership. Nonetheless, the opportunity to leverage the higher FMR through Section 8 vouchers presents a compelling investment strategy for those interested in maximizing returns 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.