Location: McPherson County, SD | Metro: McPherson County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
U.S. Census Bureau data (2024)
The median income in ZIP code 57457 stands at $140,417. However, without the specific market rate for rentals, it's challenging to provide an exact comparison. Nevertheless, we can evaluate the situation based on the Fair Market Rent (FMR) standard set for voucher payments, which is $1,090 for the metro area in fiscal year 2026.
The low percentage of renters—only 11.3%—and the small population of 108 indicate a limited demand for rental properties. This suggests that landlords might face stiff competition when trying to attract tenants willing to pay the market rate, especially if that rate significantly exceeds the voucher payment standard.
Given the high median income, potential renters could afford higher market rates, but the actual willingness to pay beyond the voucher amount remains uncertain. The affordability gap between the median income and the FMR voucher payment highlights a possible challenge for landlords who rely solely on cash-paying tenants. They must consider whether the local rental market supports rates above the voucher payment or if they should cater to voucher recipients to ensure occupancy.
The takeaway for landlords is clear: focusing on both voucher and cash-pay strategies can maximize the chances of maintaining occupancy. While cash-paying tenants might offer higher rents, the reliability of voucher payments ensures steady income. Landlords should be prepared to compete on quality and amenities to attract either type of tenant in this small, niche market.
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.