Location: Edmunds County, SD | Metro: Brown County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,570 |
| 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)
In ZIP code 57451, the Section 8 economics present a unique challenge for landlords and small-portfolio investors. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,010. This figure represents the maximum amount the housing authority will pay towards the rent of a two-bedroom unit under the Section 8 program.
The local market rent, as per the latest Census ACS data, averages at $1,213 for a two-bedroom apartment. This indicates that landlords in ZIP 57451 may face a shortfall if they rely solely on Section 8 vouchers to cover their rental income.
To understand the actual reimbursement a landlord can expect, it's essential to factor in the tenant's portion of the rent and any utility allowances. Typically, the tenant is responsible for paying approximately 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500 for a tenant in this area, the tenant's portion would be around $450. Utility allowances vary but usually do not significantly impact the total reimbursement. For simplicity, let's consider the utility allowance to be negligible in this calculation.
This means the total reimbursement a landlord would receive for a two-bedroom apartment would be the sum of the SAFMR and the tenant's contribution. In this case, it would be $1,010 + $450 = $1,460. However, since the market rent is higher at $1,213, the landlord would only need to collect the market rent plus the utility allowance from the tenant, making the total collected $1,213 + $450 = $1,663.
The typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 57451, given these figures, would be a surplus of $450 above the market rent, assuming the tenant's income and the utility allowance remain constant. Landlords should note that this surplus is subject to the tenant's ability to pay their share of the rent and any changes in utility allowances.
Given these specifics, landlords must carefully evaluate whether the Section 8 program aligns with their financial goals for properties in ZIP 57451. While the SAFMR sets a cap on the government subsidy, the combination of market rent and tenant contributions can provide a stable source of income, albeit with a fixed ceiling on government assistance.
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.