Location: Walworth County, SD | Metro: Campbell County, SD
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $114,532 | 0.99% | C |
| 3BR | $1,350 | $176,030 | 0.77% | D |
U.S. Census Bureau data (2024)
ZIP 57472, located in Walworth County, SD metro, serves as a strong cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area in fiscal year 2026 is set at $1,110, while the current market rent stands at $814. This creates a significant positive spread of $296 per unit, allowing landlords to maintain healthy cash flows even when accounting for the lower reimbursement rates typical of Section 8.
The median home value in ZIP 57472 is $134,156, which is notably below the FMR, making it an ideal location for acquiring properties at a discount. This can be particularly advantageous for landlords and small-portfolio investors looking to maximize their returns on investment through rental income. Despite the relatively low median home value, the area has a median household income of $61,708, indicating that residents have sufficient financial stability to meet their obligations under the Section 8 program.
The ZIP code's 20.2% renter share suggests that there is a reasonable demand for rental properties, further supporting its role as a cash-flow anchor. While appreciation plays and diversifiers can be valuable components of a real estate portfolio, the clear financial benefits of ZIP 57472 make it an attractive option for generating consistent income. The lack of recent sales data, with only one property listed and zero sold within the past year, underscores the limited opportunities for appreciation in this market.
In summary, ZIP 57472 is best suited as a cash-flow anchor due to its favorable FMR-to-market rent spread and the opportunity to purchase properties at below-average values. This allows landlords to leverage the Section 8 program effectively, ensuring steady and reliable income streams.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.