Location: Kingsbury County, SD | Metro: Beadle County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The ZIP code 57386 in Kingsbury County, SD, is best suited as a diversifier within a Section 8 portfolio strategy. The area has a median income of $76,250, which is relatively low compared to urban areas but still provides a stable tenant base. With a renter share of 23.8%, there is a notable segment of the population relying on rental housing, making it a viable option for landlords focused on Section 8 tenants.
The Financial Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970. However, the current market rent is estimated at $687, indicating a spread of $283 per month. This difference suggests that properties in ZIP 57386 can be rented below the FMR threshold, which is beneficial for landlords seeking to attract Section 8 tenants who may have limited flexibility due to their voucher amount.
Despite the lack of specific data on price-cut shares and days on market (DOM), the area's characteristics make it an ideal diversification play. Diversifying a portfolio into areas like ZIP 57386 can help mitigate risks associated with higher-cost markets and provide a more balanced investment strategy. Landlords should focus on maintaining properties in good condition to ensure they remain attractive to Section 8 tenants and comply with HUD standards.
In conclusion, ZIP 57386 serves as a valuable diversifier in a Section 8 portfolio strategy due to its stable tenant base and the ability to rent properties below the FMR threshold. This approach can enhance the overall stability and performance of an investment portfolio.
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.