Section 8 Fair Market Rent (FMR) for ZIP 57466 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$740
1 Bedroom	$820
2 Bedrooms	$1,070
3 Bedrooms	$1,380
4 Bedrooms	$1,620
5 Bedrooms	$1,879
6 Bedrooms	$2,104
7 Bedrooms	$2,272
8 Bedrooms	$2,386

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, the Section 8 thesis for ZIP 57466 in Onaka, South Dakota, is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $950 for a unit. However, the specific market rent data for ZIP 57466 is not available, making it challenging to provide an exact percentage gap. Given that the FMR is higher than the reported median rent of $752, this suggests that landlords accepting Section 8 vouchers could potentially earn above-market yields. This makes the ZIP code a favorable investment opportunity for landlords who can secure voucher tenants. The difference of $198 between the FMR and the median rent translates into a 26.3% premium for landlords participating in the Section 8 program. Despite the high potential yield, the ZIP code has a unique context with only 0.0% of renters and a median home value of $157,560. The median household income is $51,172, indicating that while homeownership might be more prevalent, the lower median income could influence the willingness of residents to rent.

The analysis is anchored in the broader context of the area's economic profile, where the median income is relatively low compared to the median home value. This suggests that homeownership might be less accessible for many residents, pushing them towards renting options. However, the lack of renters in the area implies that the demand for rental properties is minimal.

• The FMR of $950 is higher than the median rent of $752, offering a 26.3% premium for Section 8 voucher tenants.
• The ZIP code has a median home value of $157,560 and a median income of $51,172, suggesting limited affordability for homeownership.
• The absence of renters indicates low demand for rental properties, which could affect occupancy rates and the overall viability of rental investments.

In conclusion, while there is a significant financial incentive for landlords to accept Section 8 tenants due to the premium offered over the median rent, the low demand for rental properties in ZIP 57466 poses a challenge. Landlords must weigh the potential for higher yields against the risk of lower 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.