Location: Hutchinson County, SD | Metro: Charles Mix County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 57330 highlights several critical factors that could impact a Section 8 landlord's operations negatively. First, tenant turnover is a significant concern. The market rent stands at $618, which is notably lower than the $960 Fair Market Rent (FMR) for the fiscal year 2026 in the metropolitan area. This discrepancy suggests that tenants might seek higher-rent properties outside the Section 8 program, leading to frequent turnover and associated costs.
Vacancy exposure is another risk. With the days on market (DOM) being listed as N/A, it's challenging to predict how quickly a property will be rented out, especially if the competition for tenants is fierce. This uncertainty can lead to periods of vacancy, during which the landlord would not receive rental income, despite still having to cover property expenses.
The deferred-maintenance exposure is also substantial. Given the typical home value is not available, but considering the median household income of $71,563, landlords must prepare for the possibility that tenants might not prioritize maintenance due to financial constraints. This could result in increased repair and upkeep costs over time, affecting the overall profitability of the investment.
However, these risks must be weighed against the high renter density in ZIP 57330, where 13.5% of residents are renters. High renter density typically correlates with greater demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of rental income. The presence of a large number of potential voucher holders mitigates some of the risks associated with vacancy and tenant turnover.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 57330 is moderate. While there are significant challenges, particularly with tenant turnover and maintenance costs, the high proportion of renters and likely robust demand for housing assistance offer a degree of stability and security.
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.