Location: Clark County, SD | Metro: Clark County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The ZIP code 57278 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, as the market rent stands at $808, notably lower than the Fair Market Rent (FMR) of $940 for the fiscal year 2026 in the metropolitan area. This discrepancy suggests that tenants might be more inclined to leave once their financial situation improves, leading to higher turnover rates and potential instability in rental income.
Vacancy exposure is another critical issue. The average days on market (DOM) is not available, which makes it difficult to predict how long properties might remain vacant between tenancies. A prolonged period without tenants can significantly impact cash flow and profitability, especially when combined with the lower market rent compared to FMR.
Deferred maintenance exposure is also present. With a median income of $70,208 and no typical home value provided, landlords must be prepared for the possibility that some tenants might not prioritize property upkeep. This could result in additional costs for repairs and maintenance, further reducing the overall return on investment.
However, these risks are mitigated by the high renter share of 22.4%. High renter density typically indicates a robust demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of tenants. The reliance on Section 8 vouchers ensures a consistent source of rental income, even if it is slightly below the market rate.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 57278 supports a moderate risk assessment for a first-time Section 8 landlord. The presence of voucher holders can help maintain occupancy and income stability, though landlords should be prepared for the specific conditions outlined above.
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.