Location: Spink County, SD | Metro: Brown County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 57461, located in Spink County, South Dakota, reveals a unique set of conditions that impact rental decisions and investment strategies. The HUD Fair Market Rent (FMR) for the metro area, effective in fiscal year 2026, is set at $980 per month. This figure serves as a benchmark for comparing the viability of voucher tenants against market rents.
Unfortunately, the current market rent data for ZIP 57461 is not available, which makes it challenging to provide a direct comparison between the HUD FMR and the local rental market. However, based on the HUD FMR alone, we can infer that voucher tenants will likely cashflow at the FMR rate without requiring premium units. The lack of market rent data means that there's no precise way to determine if voucher tenants will cashflow marginally or require premium units to be profitable.
The median home value in the area is $189,428, which provides a basis for calculating the rent-to-price ratio. Using the HUD FMR of $980, the annual rent would be approximately $11,760, leading to a rent-to-price ratio of roughly 6.2%. This ratio indicates that rental income represents a significant portion of the home's value, making it attractive for investors looking to generate steady rental income.
Additionally, the data does not specify the median days on market (DOM) or the percentage of homes that have experienced price cuts. These factors typically influence the rent-versus-buy dynamics, but their absence here suggests that the housing market is relatively stable, with few fluctuations in pricing.
The strongest investor angle in ZIP 57461 is cashflow. Given the HUD FMR and the median home value, investors can expect consistent positive cash flow from Section 8 voucher tenants, even in the absence of detailed market rent data.
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.