Location: Sanborn County, SD | Metro: Jerauld County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
The ZIP code 57358 presents several challenges for potential Section 8 landlords and small-portfolio investors. Tenant turnover is a significant concern, especially considering that the Fair Market Rent (FMR) for the metro area is set at $930 for fiscal year 2026. This figure may not align with the local market rent, which is currently unspecified, leading to difficulties in attracting and retaining tenants.
Vacancy exposure is another critical issue. The average days on market (DOM) for properties in this area is not available, which can make it difficult to predict how long a unit might remain vacant between tenants. A prolonged period of vacancy can lead to significant financial strain, as landlords will not receive rental income during this time.
Deferred maintenance is also a risk factor. With an unspecified typical home value and a median income of $85,000, there's uncertainty regarding the ability of residents to maintain their homes to the standards required by the Housing Choice Voucher program. This could result in higher-than-average maintenance costs and potential compliance issues.
However, these risks must be weighed against the low renter share in the area, which stands at 0.0%. Typically, a high renter density would indicate greater demand for housing vouchers, but the inverse is true here. While this suggests fewer potential Section 8 tenants, it also implies less competition and potentially a more stable rental environment once tenants are secured.
Verdict: High risk for a first-time Section 8 landlord due to uncertainties in market rent and days on market, along with the challenge of deferred maintenance and low renter density.
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.