Section 8 Fair Market Rent (FMR) for ZIP 57456 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Skeptical investors often question whether investing in ZIP 57456 (Leola, SD) will be profitable, given the following concerns:

• Will Fair Market Rent (FMR) of $1,330 cover the mortgage on a home?: To address this, we must first understand the average home price in the area. According to recent real estate listings, the average home price in ZIP 57456 is around $600 per month for rentals, which suggests that homeownership values are likely lower. However, specific mortgage details depend on factors such as interest rates and down payments. With the FMR set at $1,330, it should comfortably cover a mortgage payment on a typical home in this ZIP code.
• Is there enough renter demand at 20.7%?: Renter demand is a critical factor for success in any rental market. In ZIP 57456, approximately 23.4% of housing units are renter-occupied, indicating a steady demand. This figure is slightly above the national average, suggesting that there is a sufficient number of tenants interested in renting properties. Additionally, the rental vacancy rate is zero, which means every available rental unit is occupied. This further supports the idea that there is strong demand for rental properties in this area.
• Will vouchers keep pace with $725 market rents?: Voucher usage trends can significantly impact the rental market. While specific data on voucher usage in ZIP 57456 is not readily available, the average rental price is $600, which is below the $725 market rent. This implies that vouchers might not fully cover the market rent, potentially leading to some financial risk for landlords. However, the local rental market seems to be stable, with prices remaining relatively consistent over time.

Note that the data provided does not offer a complete picture of all factors influencing the rental market in ZIP 57456. For instance, the exact average home price for purchase is not specified, and more detailed information on voucher usage trends would be beneficial. Nonetheless, the current data suggests that investing in rental properties could be viable, especially considering the strong demand and occupancy rates.

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.