Location: Sanborn County, SD | Metro: Aurora 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 | $900 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,790 | $260,740 | 0.69% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 57363 are governed by specific financial parameters that landlords need to understand. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $1,180 per month for FY 2026. This figure is specific to this ZIP code, reflecting the localized cost of housing.
In contrast, the local market rent for a two-bedroom unit is much lower, running at $394 per month based on the latest Census ACS data. This significant discrepancy highlights the disparity between the actual market conditions and the government-set rates.
A landlord participating in the Section 8 program receives reimbursement for the difference between the tenant's contribution and the SAFMR. Typically, the tenant contributes 30% of their adjusted income towards rent. Utility allowances can also be factored into the total amount paid by the Housing Authority, but these vary and are generally modest.
To illustrate, if a tenant's share is calculated at 30% of an income of $1,500, they would contribute $450 towards the rent. Given the SAFMR of $1,180, the Housing Authority would cover the remaining $730, plus any applicable utility allowance. However, this reimbursement is based on the higher SAFMR rather than the local market rent, which means landlords receive a fixed amount regardless of the actual market conditions.
The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 57363 is a surplus. Landlords will receive approximately $786 more per month than the local market rent ($1,180 - $394 = $786). This surplus provides a buffer against the lower market rents, ensuring that landlords are compensated above the local average. It's important to note that while this SAFMR is favorable, it does not account for potential maintenance costs or vacancy periods.
Landlords should also consider that the SAFMR is subject to annual adjustments, which could affect future reimbursements. Additionally, the tenant's portion of the rent can change annually based on their income, potentially altering the reimbursement amount.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.