Location: Brule County, SD | Metro: Aurora County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The market in ZIP code 57383 presents a dynamic scenario that reflects current housing pressures and potential opportunities for landlords and small-portfolio investors. With a Fair Market Rent (FMR) of $930 for the fiscal year 2026, this figure indicates the rental value set by the U.S. Department of Housing and Urban Development (HUD) for the area, which serves as a benchmark for affordability and subsidy levels.
In contrast, the market rent stands at $645, according to the Census ACS data. This suggests that the actual rents being charged in the market are below the HUD's FMR, pointing to a scenario where supply might be meeting or slightly exceeding demand. However, the absence of specific data on price-cut share, days on market (DOM), and median home value complicates a straightforward interpretation of the supply-demand balance.
The 21.6% renter share highlights an ongoing trend in the area. A significant portion of residents choosing to rent over owning can indicate several things: it could mean that there are barriers to homeownership, such as financial constraints or preference for mobility and flexibility among renters. This also suggests long-term housing pressure, as a higher percentage of renters often correlates with a greater need for affordable rental properties. Landlords and investors should consider this as a signal that maintaining or even increasing rental offerings could be beneficial.
The gap between the FMR and the market rent signals a potential opportunity for landlords to adjust their pricing strategies to better align with HUD guidelines while still remaining competitive. This could attract tenants who rely on subsidies or those looking for affordable housing options. It also implies that there is room for growth in rental income without necessarily pushing tenants into unaffordable situations.
Investors should pay close attention to the local economy, job market, and demographic trends to understand how these factors might influence future housing demands. While the current snapshot shows a relatively balanced market, the high renter share suggests a persistent need for rental properties, which could translate into steady demand for well-managed rental units.
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.