Location: Tripp County, SD | Metro: Lyman County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 properties in ZIP code 57544 presents several challenges that must be carefully considered. Tenant turnover is a significant concern, especially when comparing the market rent of $675 to the Federal Market Rent (FMR) of $1,050 for fiscal year 2026. The disparity between these two figures suggests a higher likelihood of tenants seeking more affordable housing options, leading to increased turnover rates.
Vacancy exposure is another critical risk factor. With the days on market (DOM) data being unavailable, it's difficult to gauge how quickly properties can be filled. However, the lack of information regarding typical home values and the median income of $78,750 indicates that there might be limited financial resources available for landlords to cover maintenance and repair costs, potentially leading to deferred maintenance issues.
Despite these risks, the high renter share of 20.8% in ZIP 57544 points towards a robust demand for rental properties, including those utilizing Section 8 vouchers. This high concentration of renters typically translates into greater competition for available units, which can stabilize occupancy rates and reduce vacancy periods. Furthermore, the presence of a substantial number of voucher holders can mitigate some of the financial uncertainties associated with rental income.
In summary, while there are notable risks such as tenant turnover and potential deferred maintenance due to limited financial buffers, the high renter density in ZIP 57544 supports a moderate risk profile for a first-time Section 8 landlord.
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.