Location: Bennett County, SD | Metro: Bennett County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
U.S. Census Bureau data (2024)
The median income in ZIP code 57551 stands at $70,096, which provides insight into the financial capacity of households in this area. The market rate for rent, according to Census ACS data, is $613 per month. This figure is significantly lower than the Fair Market Rent (FMR) set at $1,170 for the metro area in fiscal year 2026. The disparity between these two figures highlights the affordability gap faced by renters.
In ZIP 57551, where 35.1% of the 2,084 residents are renters, the reality is that many cannot afford the FMR. This means that landlords must consider the practicality of their rental pricing when attracting tenants. Offering market-rate rents of $613 can make properties more accessible to a larger portion of the renting population, but it also limits the potential revenue compared to the FMR.
The competition among landlords is likely intense due to the affordability gap. Tenants are looking for deals that fit within their budget, and the FMR of $1,170 is out of reach for most households based on their median income. Landlords who aim to maximize occupancy might find it beneficial to offer rents closer to the market rate rather than aligning with the higher FMR.
For landlords considering voucher versus cash-pay strategies, the takeaway is clear: accepting vouchers that pay up to $1,170 can provide a steady stream of guaranteed income, albeit at a higher rate than the local market average. However, this strategy requires navigating the administrative complexities associated with voucher programs. On the other hand, setting rents at the market rate of $613 could attract more cash-paying tenants, increasing the likelihood of full occupancy but potentially lowering overall monthly income.
Ultimately, landlords should weigh the benefits of guaranteed income against the ease of managing cash-paying tenants. The decision will depend on individual circumstances, including the desire for stability versus the preference for simpler tenant management.
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.