Location: Gregory County, SD | Metro: Gregory 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 economics of Section 8 in ZIP code 57538 are straightforward. The SAFMR (Standard Amount for Fair Market Rent) for a two-bedroom apartment is set at $930 per month for the fiscal year 2026. This figure represents the maximum amount the Housing Choice Voucher program will pay for a unit in this ZIP code.
Let's break down the payment structure. A landlord receives the difference between the market rent and the tenant's portion, which is typically 30% of their income. If a tenant's monthly income is $1,500, they would contribute $450 toward the rent. The remaining $480 would come from the Section 8 voucher, assuming the market rent is at the SAFMR level of $930. However, if the local market rent exceeds $930, the landlord would not receive the full difference; they would only get up to $930 minus the tenant's contribution.
In addition to the base rent, there are utility allowances. These vary but generally cover a portion of the tenant's utilities. For ZIP 57538, these allowances might add an additional $100 to $150 to the total reimbursement, depending on the specific utility costs in the area. Therefore, the total reimbursement to a landlord could be around $580 to $630 per month for a two-bedroom unit, assuming the market rent is exactly at the SAFMR level.
Given that the local market rent data is currently unavailable, we can infer that if the market rent is higher than $930, landlords will face a reimbursement gap. This gap represents the difference between the actual market rent and the total amount reimbursed by the Section 8 program, including the tenant's contribution and utility allowances. Conversely, if the market rent is lower than $930, landlords might benefit from a surplus, where the reimbursement exceeds the market rent.
To illustrate, if the market rent for a two-bedroom unit is $1,000, the landlord would receive $580 to $630 from the Section 8 program, creating a reimbursement gap of approximately $370 to $420 per month. On the other hand, if the market rent is $850, the landlord would receive the full $930 minus the tenant's $450 contribution, plus utility allowances, resulting in a surplus of about $80 to $130 per month.
Landlords must understand that the SAFMR of $930 applies specifically to this ZIP code and does not reflect the entire metro or county area. This localized rate ensures that the reimbursement aligns closely with the housing costs in ZIP 57538.
In summary, landlords should expect a reimbursement of around $580 to $630 for a two-bedroom unit in ZIP 57538, based on the current SAFMR and standard utility allowances. The actual reimbursement gap or surplus will depend on the local market rent, which must be determined to calculate the exact financial impact of accepting a Section 8 tenant.
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.