Location: Buffalo County, SD | Metro: Brule County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
ZIP 57370, located in Buffalo County, SD, serves as an effective cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the favorable financial metrics that support long-term stability and consistent returns.
The primary reason for this designation is the significant spread between the Fair Market Rent (FMR) and the market rent. For the fiscal year 2026, the FMR for the metro area is set at $990, while the market rent stands at $825. This $165 difference ensures a steady and reliable cash flow for landlords participating in the Section 8 program, as they receive government-subsidized rents that exceed local market rates.
Furthermore, the median income in ZIP 57370 is $58,824, which indicates a moderate economic environment. While the median home value is not available, the focus on rental properties aligns well with the 26.2% renter share, suggesting a stable demand for rental units in this area.
It's important to note that appreciation plays and diversifiers typically require different criteria, such as a high percentage increase in property values or a low Days on Market (DOM) for sold properties. However, these metrics are not applicable for ZIP 57370, as the data provided does not include any percentage price-cut share or DOM figures.
In conclusion, ZIP 57370 is best suited as a cash-flow anchor due to the substantial gap between FMR and market rent, ensuring landlords can maintain a profitable and secure investment even when market conditions fluctuate. This makes it a solid choice for small-portfolio investors looking to stabilize their earnings and manage risk effectively.
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.