Location: Hand County, SD | Metro: Hand County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 57373, located in Saint Lawrence, South Dakota, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,020, whereas the market rent for a 4-bedroom home or apartment is $1,300. This indicates a gap of $280, representing a 27.5% difference between the FMR and the market rent.
Given the gap, it is evident that voucher tenants will be paying below the open-market rates. This can pose a financial challenge for landlords and small-portfolio investors, who may need to absorb the difference between the voucher amount and the market rent. In ZIP 57373, where 43.1% of residents are renters, the median income stands at $46,607, and the median home value is $302,907. These factors suggest that while the rental market is relatively small, with only 1.7% of properties available for rent, the disparity between FMR and market rent could impact profitability.
To illustrate, if a landlord rents out a 4-bedroom property at the FMR of $1,020, they would be losing $280 per month compared to the market rate of $1,300. This discrepancy means that landlords must carefully consider the cost implications of accepting Section 8 vouchers. Despite the challenges, the strong house appreciation rate of 14.45% in the last year and 81.4% over the past decade indicates that investing in real estate in Saint Lawrence remains a viable strategy for long-term gains.
Landlords and small-portfolio investors should weigh the benefits of stable, government-backed rental income against the potential loss in immediate cash flow when deciding whether to participate in the Section 8 program. The decision should also take into account the broader economic context of the area, including median income levels and home values.
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.