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 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 57426 reveals a unique blend of yield and stability characteristics that can inform investment strategies for landlords and small-portfolio investors. The Federal Market Rent (FMR) for this area is set at $930 for fiscal year 2026, which represents the maximum rental assistance payment standard for the metropolitan area. However, the absence of specific market rent and home value data suggests limited activity in these sectors, indicating a niche market.
In terms of yield, the FMR figure of $930 stands out as a clear benchmark for rental income potential. Given the lack of comparative market rent data, it implies that properties in this ZIP code could be rented close to the FMR without significant competition, thereby maximizing rental income per unit. This is particularly advantageous if the property acquisition costs are lower relative to the FMR, suggesting a potentially high-yield environment.
Stability in ZIP 57426 is influenced by the reported 0.0% of renters, which is an anomaly and likely indicates an error in data reporting. Assuming this is incorrect and focusing on the median household income of $78,875, there is a strong financial foundation supporting the local economy. High incomes generally correlate with lower vacancy rates and more consistent rental payments, contributing to a stable cash flow for investors.
The days on market (DOM) data being unavailable further complicates the analysis but also hints at a less volatile market. In areas where DOM is typically tracked, low DOM values suggest quick sales, indicative of a hot market, while high DOM values point to slower sales and a cooler market. The unavailability here might simply mean that transactions are infrequent, possibly due to a smaller pool of buyers or sellers, leading to a more stable but less liquid market.
Given these factors, ZIP 57426 appears to offer a steady-cashflow investment opportunity rather than a high-yield/low-stability flip-style market. The potential for high rental yields based on the FMR is balanced by the strong economic stability indicated by the median household income. This makes it suitable for investors looking to secure long-term, reliable returns over speculative gains.
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.