Location: Hutchinson County, SD | Metro: Douglas County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP code 57366 might raise several concerns regarding the feasibility of investing in Section 8 properties. These objections can be addressed using available data, though some questions remain open-ended due to the nature of the information provided.
Will FMR $930 (metro FY 2026) cover the mortgage on a $232,765 home?
The Fair Market Rent (FMR) for ZIP 57366 is projected to be $930 per month in fiscal year 2026. This figure represents the average rent that a tenant can expect to pay for a modest home in the area. However, whether this amount will sufficiently cover the mortgage on a home priced at $232,765 depends on several factors including interest rates, loan terms, and property taxes. According to the data, it's not guaranteed that the FMR will cover all costs associated with owning a home at this price point. A conservative approach would involve calculating the total monthly mortgage payment and comparing it to the FMR to ensure profitability.
Is there enough renter demand at 23.9%?
The rental demand in ZIP 57366 is estimated at 23.9%, which indicates a moderate level of interest among potential tenants. While this percentage suggests there is a base level of demand, it also implies that the competition for renters could be significant. Landlords should consider the local vacancy rate and the number of units available to gauge how competitive the market truly is. Additionally, understanding the demographic makeup of the area can provide insights into the types of renters likely to be interested in Section 8 housing. The data does not specify the vacancy rate or the number of units, so further investigation is recommended to assess the actual demand.
Will vouchers keep pace with $762 market rents?
The market rent in ZIP 57366 is currently set at $762 per month. Given that the FMR is higher at $930, landlords might wonder if voucher amounts will increase to match these higher market rents. Historically, voucher amounts have adjusted over time but often lag behind market conditions. The data does not provide future projections for voucher amounts, making it difficult to definitively state whether they will align with the $762 market rent. It is advisable for investors to monitor both the FMR and voucher trends closely to anticipate any discrepancies that could affect their investment returns.
In summary, while the data provides a snapshot of the rental market in ZIP 57366, certain aspects such as future mortgage coverage and voucher adjustments remain uncertain. Careful analysis of additional local market indicators and ongoing monitoring of federal guidelines will be crucial for informed decision-making.
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.