Location: Roberts County, SD | Metro: Day County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,020 |
| 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)
The analysis of the Section 8 program in ZIP code 57273 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,010, while the Census ACS reports the market rent at $591. This creates a disparity of $419 per month, which translates into a 71% difference between the two figures.
Given that the FMR exceeds the market rent, it becomes evident that properties in ZIP 57237 can attract voucher tenants who will pay a higher rate than what is currently being charged in the open market. This makes the ZIP code a prime location for a yield play, where landlords can achieve better returns on their investment by participating in the Section 8 program.
In ZIP 57273, 26.0% of residents are renters, indicating a moderate rental market presence. With a median home value of $289,389 and a median income of $48,167, the financial landscape suggests that many homeowners and potential landlords may find the opportunity to lease properties at FMR levels appealing. The higher rental income from voucher tenants can offset the costs associated with maintaining and managing rental properties, including repairs, property taxes, and insurance.
The Section 8 program provides a stable source of income, as payments are made directly by the government to cover the difference between the actual rent and what the tenant can afford based on their income. For a household earning the median income of $48,167, the program ensures that landlords receive the full FMR amount, making it a reliable investment strategy.
However, it's important to note that landlords must comply with federal regulations regarding property condition, safety standards, and other requirements. Despite these obligations, the potential for increased cash flow and long-term stability in an otherwise volatile rental market makes ZIP 57273 a favorable environment for Section 8 participation.
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.