Location: Lyman County, SD | Metro: Lyman County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 57548 might question whether the Fair Market Rent (FMR) of $930 for the fiscal year 2026 will sufficiently cover the mortgage payments on a property. However, without specific information on median home values or typical mortgage rates, it's challenging to provide a definitive answer. Generally, an FMR of $930 suggests that rental properties in this area should be priced accordingly to attract tenants.
The same investor could also be concerned about the level of renter demand, given that only 66.1% of households in ZIP 57548 are renters. This percentage indicates a moderate demand, but it does not necessarily mean that finding tenants will be difficult. The demand rate is a reflection of the overall housing market composition and does not directly correlate with the ease of renting out properties. In fact, a lower renter percentage can sometimes indicate a stable market with fewer competing rental units.
Another critical concern is whether the Housing Choice Voucher program will keep up with the market rents, which are currently at $504. The voucher program aims to cover a significant portion of the rent, but the exact amount depends on individual circumstances and the specific policies of the local housing authority. Historically, voucher amounts have adjusted over time to reflect changes in the cost of living and market conditions. While the data does not provide a direct comparison between past voucher adjustments and current market rents, the trend has generally been towards parity. It's important to note that landlords participating in the voucher program must meet certain standards and may benefit from long-term stability and reduced vacancy rates.
In summary, while the data raises some valid points of concern, particularly regarding the unknowns of mortgage coverage and voucher adjustments, the moderate renter demand percentage suggests a balanced market. Investors should consider these factors alongside other local economic indicators and trends to make informed decisions.
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.