Location: Day County, SD | Metro: Day County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $860 |
| 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)
Households in ZIP code 57261, with a median income of $77,813, face significant challenges in affording the market rate rent of $525 per month. This figure represents the average rental cost based on Census ACS data. However, the reality is that the Fair Market Rent (FMR) set at $980 for the metro area in fiscal year 2026 far exceeds what most local renters can comfortably pay.
The disparity between the median income and the market rate rent suggests that many residents may struggle to find suitable housing without financial assistance. Given that 38.7% of the 277-person population are renters, it becomes evident that there is a notable affordability gap in the area. This gap means that landlords will likely encounter stiff competition for tenants willing to pay the market rate, as many may be seeking more affordable options or government assistance.
When comparing the market rate of $525 to the FMR of $980, it is clear that the latter is substantially higher. This discrepancy implies that landlords who rely solely on market-rate rents may miss out on potential tenants who qualify for Section 8 vouchers. These vouchers cover the difference between the tenant's contribution (typically 30% of their income) and the FMR, making it possible for low-income households to secure housing that would otherwise be unaffordable.
The takeaway for landlords considering whether to accept voucher payments or focus on cash-paying tenants is that embracing both strategies could maximize occupancy rates and revenue. While cash-paying tenants might offer quicker lease signings and fewer administrative hurdles, accepting Section 8 vouchers can provide a steady stream of income from government subsidies, ensuring long-term stability and reducing vacancy rates. Landlords should carefully evaluate the local rental market dynamics and consider diversifying their tenant mix to include those with vouchers to remain competitive and financially viable.
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.