Location: Charles Mix County, SD | Metro: Charles Mix County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 57380 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $940 per month for the fiscal year 2026. This figure is specific to this ZIP code, ensuring that it reflects the local rental market conditions accurately.
However, the local market rent for a two-bedroom unit in ZIP 57380, according to the Census ACS (American Community Survey), is $692 per month. This discrepancy between the SAFMR and the actual market rent can be advantageous for landlords who want to participate in the Section 8 program.
When a tenant uses a Section 8 voucher, they are responsible for paying 30% of their adjusted income toward rent. The voucher then covers the difference between the tenant's payment and the SAFMR. Additionally, utility allowances are factored into the reimbursement. For ZIP 57380, the utility allowance is typically around $250 per month, though this can vary depending on the household size and specific circumstances.
To illustrate, if a tenant has an adjusted income of $1,000 per month, they would pay $300 toward rent ($1,000 x 0.30). The Section 8 voucher would cover the remaining $640 of the SAFMR ($940 - $300), plus the utility allowance of $250, making the total reimbursement $890 per month.
This means that even if the market rent is $692, a landlord could potentially receive up to $890 per month when participating in the Section 8 program. In this scenario, the landlord would have a surplus of $198 per month over the market rent ($890 - $692).
Landlords should note that while the SAFMR is $940, the actual reimbursement may be less due to the tenant's contribution and the utility allowance. However, the reimbursement will never exceed the SAFMR, so landlords must ensure that their rents do not exceed this amount to remain eligible for the program.
In summary, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 57380 under the Section 8 program is a surplus of $198 per month over the market rent. This surplus can provide a financial buffer for landlords, helping to offset potential risks associated with the program.
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.