Location: Brown County, SD | Metro: Brown County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
The Section 8 market in ZIP code 57402, located in Brown County, South Dakota, is set to receive a Housing and Urban Development (HUD) Fair Market Rent (FMR) of $930 for the fiscal year 2026. This figure represents the maximum amount that voucher holders can pay towards their monthly rent, based on the metropolitan area's average rental rates.
Given that the current market rent data for ZIP 57402 is not available, we must rely on the HUD FMR to assess the potential cash flow for landlords and small-portfolio investors. Voucher tenants in this area will likely cashflow at the FMR rate, assuming that the local market rent does not significantly exceed the FMR. If market rents are higher, then landlords might only see positive cash flow with premium units that meet certain quality standards and justify a higher rental price.
The median home value for ZIP 57402 is also not available, which means we cannot calculate an exact rent-to-price ratio. However, this ratio is typically used to compare the cost of renting versus buying a home. Without specific figures, it's challenging to provide a precise comparison, but generally, a lower median home value would suggest a better rent-to-price ratio, making rental properties more attractive to potential buyers.
The days on market (DOM) and price cut share data are not available for this area, indicating a lack of recent sales activity that could affect the rent-versus-buy dynamics. These metrics are crucial for understanding how quickly homes sell and at what discount, which can influence the attractiveness of rental investments over homeownership.
In conclusion, the strongest investor angle in ZIP 57402 appears to be cash flow, given the HUD FMR rate of $930. Landlords should ensure that their properties meet the necessary standards to attract voucher holders, as this will likely be the primary source of stable income in the area. While appreciation and stability are also important considerations, the immediate financial benefit leans towards cash flow due to the reliance on government-subsidized rents.
Data Sources: FMR data from HUD (2027).
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.