Location: Charles Mix County, SD | Metro: Charles Mix County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 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 analysis of the rental market in ZIP 57356, which encompasses Lake Andes, South Dakota, reveals a significant gap between the Federal Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $930, while the current market rent, according to Census ACS data, stands at $742. This means there is a gap of $188, or approximately 25%, between the FMR and the market rent.
In this scenario, where the FMR exceeds the market rent, properties leased to voucher tenants become a yield play. Landlords can expect to receive a higher rent payment from voucher holders compared to what the open market offers. This differential can be leveraged to improve cash flow and investment returns, especially given the median income of $54,107 in the area, which suggests that many residents might rely on rental assistance programs to secure housing.
The 24.2% of renters in ZIP 57356 further supports the idea that a substantial portion of the population is looking for affordable housing options. Since the median home value is not available, it underscores the importance of rental properties in providing housing solutions for the community.
To summarize, the disparity between FMR and market rent in ZIP 57356 makes it financially advantageous for landlords to accept Section 8 vouchers. This strategy can enhance profitability and align with the needs of the local 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.