Location: Brown County, SD | Metro: Brown County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 57427 in Brown County, South Dakota reveals several key points for potential Section 8 real-estate investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the area as of fiscal year 2026 is set at $980. However, the market rent data is currently unavailable. This means that while we know the government's benchmark for what is considered fair rent, we cannot compare it to current market rates to determine if the rent math works favorably for landlords.
Moving on to the affordability of acquisitions, the median home value in the area is also not provided. Additionally, the average number of days on the market (DOM) and the percentage of homes that have been listed with a price cut are both missing. Without these figures, it's challenging to assess how competitive the housing market is and whether acquiring properties will be financially feasible for investors.
The third point concerns tenant demand. The ZIP code has a total population of 384, with 18.6% of residents being renters. This indicates a relatively small pool of potential tenants, which could affect the availability of Section 8 participants willing to lease properties. Given the low renter share, landlords might face challenges in filling vacancies solely through the Section 8 program.
In summary, while the Fair Market Rent provides a clear guideline for rental income expectations at $980, the lack of market rent data makes it difficult to evaluate the financial viability of relying on Section 8 alone. The absence of median home values, days on market, and price-cut percentages complicates an assessment of property acquisition costs. Lastly, with only 18.6% of the 384 residents being renters, the demand for rental properties, particularly those accepting Section 8 vouchers, appears limited. Landlords and small-portfolio investors should proceed with caution and seek additional data before making investment decisions in ZIP 57427.
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.