Location: Sully County, SD | Metro: Dewey County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
U.S. Census Bureau data (2024)
The potential risks for landlords investing in ZIP code 57442 through the Section 8 program are significant. First, tenant turnover can be a major issue, with the market rent set at $1,031 compared to the Federal Market Rent (FMR) of $1,010 for fiscal year 2026 in the metro area. This slight disparity might encourage tenants to seek non-subsidized housing, leading to higher turnover rates. Second, there is considerable exposure to vacancies, as the days on market (DOM) data is not available, which makes it difficult to predict how quickly properties will be rented. Lastly, the deferred maintenance risk is notable, given that the typical home value in the area is $185,267 while the median income stands at $65,625. This indicates that homeowners may struggle financially to keep up with property maintenance, potentially affecting the quality of rental units.
However, these risks must be weighed against the high density of renters in the area, with 19.1% of residents being renters. High renter density typically correlates with increased demand for Section 8 vouchers, providing a steady pool of potential tenants who can afford the rent through government subsidies. This demand can mitigate some of the risks associated with high turnover and vacancy rates.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 57442 is moderate.
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.