Location: Deuel County, SD | Metro: Brookings County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The investment landscape in ZIP code 57268 presents several challenges for landlords considering participation in the Section 8 program. Firstly, tenant turnover is likely to be higher due to the significant disparity between the market rent of $485 and the Fair Market Rent (FMR) of $1,110 for fiscal year 2026, which is based on metro area standards. This gap suggests that tenants may struggle to afford market rents without assistance, leading to frequent moves as they seek out affordable housing options.
Vacancy exposure is another concern. The data does not provide an average number of days on market (DOM), making it difficult to predict how long properties might remain vacant. High vacancy rates can lead to lost rental income, which is particularly risky when relying on government subsidies that require strict compliance and maintenance standards.
The lack of information on typical home values also poses a challenge. However, with a median income of $76,250, there is potential for deferred maintenance issues. Lower-income households may prioritize immediate expenses over home repairs, leading to a buildup of necessary maintenance that could become costly for landlords.
Despite these risks, the high renter share of 23.1% indicates a robust demand for rental housing, including units that accept Section 8 vouchers. This strong rental market suggests that there will be a steady pool of tenants seeking subsidized housing, which can help mitigate the risk of vacancies. Additionally, the high concentration of renters often translates into a greater availability of Section 8 vouchers, ensuring a consistent stream of eligible tenants.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 57268 is moderate. While there are notable risks related to tenant turnover and potential deferred maintenance, the high renter density provides a solid foundation for finding and retaining tenants who can benefit from the program's support.
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.