Location: Hutchinson County, SD | Metro: Bon Homme County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The median income in ZIP code 57376 stands at $61,538, which provides a baseline for assessing rental affordability. The market rate for rent, according to Census ACS data, is $602 per month. This figure is significantly lower than the Fair Market Rent (FMR) set at $990 for the metro area in fiscal year 2026, indicating that the ZIP code offers a cost-effective living situation for many households.
To put this into perspective, the $602 market rate is roughly 10% of the median income, suggesting that the majority of residents can comfortably afford their rent without financial strain. However, when comparing this to the FMR of $990, it becomes evident that there is a substantial gap in what is considered affordable versus the standard voucher payment rates.
In ZIP code 57376, where 28.7% of the population are renters, the disparity between the market rate and the FMR presents both opportunities and challenges for landlords. On one hand, the lower market rate means that there is a segment of the population that can afford to pay cash rent. On the other hand, landlords who accept vouchers might find themselves receiving higher payments, but they must also navigate the complexities of the voucher system.
The takeaway for landlords is clear: while accepting vouchers ensures a steady stream of income at a higher rate ($990 compared to $602), it also involves administrative overhead and potential restrictions. Landlords should consider the balance between these two strategies based on the local demand and their operational capacity. For those who prefer simplicity and a potentially larger tenant pool, focusing on cash-paying tenants is advisable. However, for those willing to manage the intricacies of the voucher system, the higher payment rates could be more profitable in the long run.
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.