Location: Roberts County, SD | Metro: Grant County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 57279 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is set at $1,120. However, the local market rent for a similar unit is significantly lower, running at $633 according to the latest Census ACS data.
A landlord participating in the Section 8 program should understand that the total payment received includes both the tenant's contribution and the utility allowance. For ZIP 57279, the tenant typically pays 30% of their adjusted income towards rent, while the remaining amount is covered by the housing authority up to the SAFMR limit.
The utility allowance is a fixed amount added to the rental subsidy to cover the cost of utilities. This allowance varies based on the size of the unit and the location. In ZIP 57279, the utility allowance for a two-bedroom apartment is not specified in the provided data but would be included in the overall reimbursement calculation.
To illustrate, if a tenant's adjusted income is $1,000 per month, they would pay $300 towards rent ($1,000 * 30%). The housing authority would then cover the difference between the tenant's payment and the SAFMR limit, which in this case is $1,120. Therefore, the housing authority would reimburse the landlord $820 ($1,120 - $300).
In ZIP 57279, where the market rent is $633, a landlord participating in the Section 8 program would receive the full market rent plus any applicable utility allowance. If we assume the utility allowance fills the gap between the market rent and the SAFMR, the landlord would receive the full $1,120 reimbursement, including the tenant's $300 contribution and the housing authority's $820 subsidy.
Given these figures, there is no reimbursement gap; rather, there is a surplus. The landlord would receive $1,120 for a unit that could otherwise rent for $633 in the open market. This represents a surplus of $487 per month over the market rent, making participation in the Section 8 program financially beneficial for landlords in ZIP 57279.
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.