Location: Hyde County, SD | Metro: Hand County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 57371 are defined by the SAFMR (Small Area Fair Market Rent) which stands at $940 for a two-bedroom apartment during fiscal year 2026. This figure represents the maximum amount that the housing authority will pay to landlords who participate in the program.
To understand how this works, let's break down the components of a voucher payment. A tenant using a Section 8 voucher typically pays 30% of their adjusted income towards rent. The remainder, up to the $940 limit, is covered by the government. Additionally, there are utility allowances which vary but are generally around $200 per month for a two-bedroom unit.
For example, if a tenant has an adjusted monthly income of $1,000, they would contribute $300 towards the rent. The government would then cover the difference up to the SAFMR limit of $940. In this case, the government would pay $640, bringing the total rental payment to $940. If utilities are included, the government might also provide an additional $200 for utilities, making the total reimbursement $1,140.
Note that the SAFMR of $940 applies specifically to this ZIP code, reflecting the unique economic conditions here. Since the local market rent is not available, we can infer that the SAFMR is a critical benchmark for landlords considering participation in the Section 8 program.
The reimbursement gap or surplus depends on the actual market rent charged for a two-bedroom apartment. If the market rent is below $940, the landlord receives the full market rent plus any utility allowance, resulting in a surplus. However, if the market rent exceeds $940, the landlord only receives the SAFMR amount plus utility allowance, leading to a reimbursement gap.
In ZIP 57371, landlords should be aware of the potential reimbursement gap if they charge above $940 for a two-bedroom unit. Conversely, charging less than $940 could result in a surplus when combined with the utility allowance.
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.