Location: Brookings County, SD | Metro: Brookings County, SD
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $332,592 | 0.42% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 57276 does not favor landlords. The Fair Market Rent (FMR) for the area, set at $930 for the fiscal year 2026, is higher than the actual market rent of $696 as reported by the Census Bureau's American Community Survey (ACS). This suggests that while the government aims to support higher rental costs, the local market does not align with these expectations, leaving landlords with a potential shortfall if they aim to charge closer to the FMR.
Acquisition in this area is not particularly advantageous for new investors. With a median home value of $323,454, the cost of entry into the real estate market is relatively high compared to other rural areas. Furthermore, the lack of data on days on market (DOM) and the percentage of homes needing price cuts indicates a stable market but also suggests limited opportunities for acquiring homes at discounted rates. Landlords should be cautious about overpaying for properties given the high median values and the absence of distressed sales.
Tenant demand is low in ZIP code 57276. The total population is 942, and only 14.6% of that population are renters. This means there are approximately 137 potential renters in the area, which is a small pool from which to draw tenants. Given the low number of renters, landlords must ensure their properties are well-priced and attractive to compete effectively in this limited market.
In summary, ZIP code 57276 presents challenges for landlords and small-portfolio investors. The discrepancy between FMR and actual market rents, coupled with a high median home value, makes it difficult to achieve both profitable rental income and affordable acquisitions. Additionally, the low tenant demand suggests that attracting and retaining renters will require careful management and competitive pricing strategies. Overall, the environment is not conducive to passive investment success without active property management and strategic planning.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.