Location: Gregory County, SD | Metro: Brule County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 57523, located in Gregory County, South Dakota, reveals several key points regarding its viability for Section 8 real-estate investment.
First, let's address whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $930. However, the Census American Community Survey (ACS) reports that the market rent in this area is only $525. This discrepancy means that landlords will not be able to cover their costs solely through Section 8 rental subsidies, which makes the rent math unfavorable for investment.
Moving on to acquisition affordability, the data shows that the median home value, days on market (DOM), and percentage of homes with price cuts are all listed as N/A. This lack of specific data suggests that there might not be enough recent transactions or listings to provide a reliable assessment of the housing market's affordability in this ZIP code. Without concrete numbers, it's challenging to determine if acquiring properties here would be financially prudent.
Finally, we must consider tenant demand. The total population of ZIP 57523 is 1,041, with 19.2% of residents being renters. This indicates a relatively small pool of potential tenants, which could make it difficult to maintain occupancy rates and ensure a steady income stream from rental properties.
In conclusion, ZIP code 57523 presents significant challenges for Section 8 real-estate investment. The disparity between the FMR and the actual market rent suggests that landlords will need additional sources of income to make ends meet. The unavailability of data on median home values, DOM, and price-cut shares implies a potentially stagnant market with limited opportunities for affordable property acquisition. Furthermore, the low renter share of the population and the small overall population size suggest that tenant demand may be insufficient to support a viable rental business. Therefore, this ZIP code is not recommended for Section 8 real-estate investment.
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.