Location: Marshall County, SD | Metro: Brown County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 57454, located in Marshall County, South Dakota, offers a unique opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area, as of fiscal year 2026, is set at $930 per month. In comparison, the market rent based on Census ACS data stands at $735 per month. This indicates that voucher tenants will cashflow positively at the FMR, providing a clear financial advantage over typical market rates.
To further analyze the investment potential, consider the median home value in ZIP 57454, which is $206,901. Using the HUD FMR of $930, we can calculate a rent-to-price ratio of approximately 0.55%. This suggests that rental income alone will cover a significant portion of the mortgage payment for a property purchased at the median home value. However, the exact percentage will depend on the interest rate and other financing terms.
The dynamics between renting and buying in this market do not significantly impact the decision-making process due to the lack of available data on the median Days on Market (DOM) and the percentage of homes that experience price cuts. These factors would typically influence an investor's choice between owning rental properties or relying solely on rental income. Given the limited availability of such data, the focus remains on the strong cashflow potential offered by Section 8 vouchers.
The strongest angle for investors in ZIP 57454 is undoubtedly cashflow. With the HUD FMR exceeding the market rent by a substantial margin, landlords can expect consistent positive cashflow from voucher tenants, making it a reliable and lucrative investment option.
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.