Location: Potter County, SD | Metro: Faulk County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The ZIP code 57473 presents a unique set of challenges and opportunities for landlords and small-portfolio investors. The median income for households here stands at $23,750, which is notably low. This figure suggests that the majority of residents have limited financial resources.
Unfortunately, the market rate for rental properties in this area is not available, making it difficult to assess the exact affordability gap for residents. However, we can analyze the situation using the Fair Market Rent (FMR) standard set by the Department of Housing and Urban Development (HUD), which is $1,010 per month for the metro area in fiscal year 2026.
Given the low median income, it is unlikely that many residents can comfortably afford even the FMR without assistance. The FMR represents the maximum amount that a voucher holder can pay toward rent, based on HUD guidelines. For landlords, this means that relying solely on market-rate tenants could limit your pool of potential renters to those who might struggle to meet their financial obligations.
The ZIP code has a relatively low percentage of renters at 4.4%, indicating that most residents likely own their homes. This fact, combined with the small population size of 246, implies that there is not a large competitive market for rental properties. However, for those who do rent, the reliance on government assistance programs such as Section 8 vouchers becomes significant.
Landlords considering whether to accept Section 8 vouchers should weigh the benefits against the drawbacks. On one hand, vouchers ensure a steady stream of rental income, as they cover a substantial portion of the rent. On the other hand, the income is capped at $1,010, which may not be sufficient to cover all costs associated with property management and maintenance.
Takeaway: Landlords operating in ZIP 57473 should consider the limited number of potential market-rate tenants and the high likelihood that many will require financial assistance. Accepting Section 8 vouchers ensures a stable income but caps it at $1,010 per month. Cash-paying tenants might offer higher rents but come with a greater risk of default due to the area's low median income. A mixed strategy, balancing voucher and cash-pay tenants, may provide a good middle ground.
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.