Location: Douglas County, SD | Metro: Charles Mix County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
The ZIP code 57342 presents a unique real estate scenario for landlords and small-portfolio investors, particularly when considering it under the lens of Section 8 analysis. The primary focus here is on the financial metrics that influence both yield and stability.
Starting with yield, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $980. This is significantly higher than the market rent of $635, indicating a potential upside for those willing to participate in the Section 8 program. However, the absence of home value data suggests that traditional ownership investments might be less attractive compared to rental properties, especially those that can benefit from government subsidies.
Moving onto stability, the ZIP code shows a 12.7% rate of renters, which is relatively low. This could imply that there's a smaller pool of tenants who might qualify for the Section 8 program. Additionally, the lack of data on days on market (DOM) indicates uncertainty around how quickly units might turn over, which is a critical factor for maintaining cash flow. On the positive side, the average income of $75,313 suggests that there is economic activity in the area, which could support a stable tenant base if they are employed and have access to housing vouchers.
Based on these figures, ZIP 57342 leans towards being a moderate opportunity. It is not a high-yield/low-stability 'flip-style' market because the FMR does not drastically outpace the market rent, and the low percentage of renters doesn't suggest a highly speculative environment. Instead, it offers a middle ground where there is a reasonable yield advantage through the Section 8 program, but stability factors such as turnover rates remain somewhat unclear. Investors should carefully consider the local demand for subsidized housing and the likelihood of qualifying tenants before making investment decisions.
To summarize, the ZIP code 57342 provides a modest yield advantage with an FMR of $980 against a market rent of $635. Stability is less assured due to the limited data on renters and property turnover, but the presence of a median income of $75,313 supports a potentially stable tenant pool. This makes it a candidate for steady cash flow rather than high-risk, high-reward flips.
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.