Location: Sanborn County, SD | Metro: Beadle County, SD
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $142,949 | 0.76% | D |
| 3BR | $1,440 | $199,945 | 0.72% | D |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 57350, located in Huron, South Dakota, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, as set by HUD for fiscal year 2026, is $960, while the Census ACS reports the market rent at $890. This means that the FMR is $70 higher than the market rent, representing an increase of approximately 8%.
The higher FMR compared to the market rent makes this ZIP code a yield play for landlords and small-portfolio investors. Voucher tenants can offer a stable and predictable source of income, ensuring that properties are rented at or near the FMR rate. Given that only 28.7% of residents in Huron are renters, there is a smaller pool of potential tenants, making it advantageous for landlords to accept Section 8 vouchers.
In Huron, where the median home value stands at $173,195 and the median household income is $66,573, the opportunity to lease properties at the FMR rather than the lower market rate can significantly improve rental yields. Landlords can capitalize on the government subsidy to achieve rental rates above what the open market might bear, thus maximizing their investment returns.
However, accepting housing voucher tenants also comes with considerations. While the FMR provides a higher rental rate, landlords must ensure that their properties meet HUD's Housing Quality Standards (HQS). Additionally, the administrative burden of working with the Section 8 program, including regular inspections and paperwork, needs to be factored into the overall cost of managing these units.
To summarize, the gap between the FMR and market rent in ZIP 57350 presents an opportunity for landlords to achieve better yields through the Section 8 program, despite the administrative requirements. With a limited number of renters in the area, voucher tenants can be a reliable option to fill units at favorable rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.