Location: Walworth County, SD | Metro: Campbell County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
To classify ZIP code 57452 based on yield and stability, we need to analyze the given data points closely.
The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,000. This figure represents the maximum rent that a landlord can charge for a Section 8 voucher holder. However, the absence of specific market rental rates and home values suggests limited data for comparison, making it challenging to gauge the premium over market rates that this FMR provides. This lack of data hints at a less competitive or perhaps less developed market, which could indicate lower yields compared to areas where market rates are higher.
Moving to stability, the ZIP code has a 13.2% rental rate, which is relatively low. A lower percentage of renters might suggest a market dominated by homeowners, potentially leading to fewer demand pressures on rental properties and thus more stable occupancy rates. However, the absence of data regarding days on market (DOM) complicates this analysis, as DOM is a key indicator of how quickly units can be leased, affecting cash flow stability.
The median household income in ZIP code 57452 is $53,571. This figure is crucial for assessing the ability of potential tenants to pay rent. In an environment where the FMR is $1,000, this income level implies that tenants might find it easier to afford the rent, contributing to greater stability in terms of default risk.
Based on the available data, ZIP code 57452 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The presence of a set FMR without a higher market rate to compare against indicates that the yield will be consistent but not particularly high. The low percentage of renters and the reasonable median income suggest that the market offers a degree of stability, as tenants are likely to have the financial means to sustain their rental payments over time.
While there's a gap in the data—specifically regarding market rental rates and days on market—it's clear that the market conditions favor a strategy focused on long-term, stable cash flows rather than short-term, high-yield investments.
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.