Location: Sanborn County, SD | Metro: Kingsbury County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,360 |
| 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 ZIP code 57323 presents an interesting landscape for both renters and landlords. With a median income of $51,250, households in this area face significant challenges when trying to afford the market rate rent, which is currently not available due to limited data. However, comparing the median income to the Fair Market Rent (FMR) set at $1,010 for metro FY 2026, it becomes evident that many residents struggle to meet the cost of housing without financial assistance.
To put this into perspective, a household earning the median income would have to allocate a substantial portion of their earnings towards rent, assuming they were paying the FMR. This allocation would leave little room for other essential expenses such as food, healthcare, and transportation, indicating a notable affordability gap.
The ZIP code has a relatively low percentage of renters at 12.2%, with a total population of 126. Despite the low rental demand, the affordability gap suggests that competition among landlords could be fierce, especially for those willing to accept Section 8 vouchers. Given the limited number of potential tenants, landlords who refuse vouchers might find themselves with fewer options for filling vacancies.
The takeaway for landlords considering whether to accept voucher payments versus relying on cash-paying tenants is clear. In ZIP 57323, where the median income is significantly lower than the FMR, accepting vouchers can be a strategic advantage. It opens up the possibility of renting to a broader base of potential tenants who otherwise would not be able to afford the market rates. While voucher payments may seem less attractive initially due to the perception of lower rents, they ensure a stable income stream and reduce vacancy rates, ultimately benefiting landlords in a challenging rental market.
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.