Location: Spink County, SD | Metro: Spink County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 57436 in Spink County, SD reveals several key points that are crucial for landlords and small-portfolio investors. First, the rent math does not work favorably due to a significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area is set at $1,180 for fiscal year 2026, whereas the Census ACS reports a market rent of only $725. This means that landlords would have to charge below the FMR to remain competitive, which could impact profitability.
Second, acquisition appears to be relatively affordable, with a median home value of $141,161. However, the lack of data on days on market (DOM) and the percentage of homes that have undergone price cuts suggests that the market dynamics for home sales are unclear. This uncertainty should be considered when evaluating the potential for acquiring properties at favorable prices.
Third, the tenant demand in ZIP 57436 is modest. With a total population of 440 and only 10.2% of residents being renters, the pool of potential tenants is limited. This could make it challenging to consistently fill rental units and maintain occupancy rates.
Verdict: Investing in ZIP 57436 presents challenges primarily due to the low market rent compared to the FMR, indicating that landlords will need to adjust their expectations regarding rental income. While the median home value is reasonable, the limited data on market conditions for home sales introduces risk. Additionally, the small number of renters in the area suggests that tenant demand is not robust, potentially leading to difficulties in maintaining high occupancy rates. Overall, the area may not be optimal for investment unless investors can find ways to mitigate these risks through strategic property management or other means.
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.