Location: Grant County, SD | Metro: Codington County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The ZIP code 57263 presents an interesting scenario for both renters and landlords alike. With a median income of $58,214, it's important to consider how this figure aligns with the local rental market. The Census American Community Survey (ACS) reports the market rate for rentals at $663. This means that a household earning the median income would spend approximately 13.1% of their monthly earnings on rent at market rates.
However, when comparing these figures to the Fair Market Rent (FMR) standards set for vouchers, which stand at $930 for metro areas in fiscal year 2026, the disparity becomes evident. At this level, a household would be spending nearly 18.7% of their monthly income on rent if they relied solely on voucher payments. This indicates a significant affordability gap for renters, especially those who might be relying on government assistance.
The ZIP code has a relatively low percentage of renters at 11.4%, with a total population of 351. This suggests that there is limited competition among landlords for tenants, which could mean that those who offer affordable options or accept vouchers might have a slight edge in attracting long-term, stable renters. However, given the small number of potential renters, the overall demand for rental properties is likely to be modest.
For landlords considering whether to adopt a voucher-friendly strategy or focus on cash-paying tenants, the decision should be based on understanding the local market dynamics. Accepting vouchers can provide a steady stream of income, albeit at a lower rate than market rents. On the other hand, focusing on cash-paying tenants might allow for higher rents but comes with the risk of reduced demand due to the limited number of potential renters.
The takeaway is that landlords in ZIP 57263 must carefully weigh the benefits of accepting vouchers against the potential for higher market rents. Given the small population and low percentage of renters, the competition for tenants is minimal, allowing for flexibility in choosing a rental strategy that best fits their financial goals and property management preferences.
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.