Location: Haakon County, SD | Metro: Rapid City, SD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 57553 might question whether the Fair Market Rent (FMR) of $1160 for 2024 can sufficiently cover the mortgage on a property. The data does not provide specific mortgage rates or home values, making it difficult to give a definitive answer. However, it's important to note that FMRs are set to ensure that rental housing is affordable for low-income households, which means they are often lower than market rents.
The second objection could be regarding the renter demand in the area, which stands at 25.0%. This percentage indicates the portion of the population that relies on rental housing. While this figure alone does not guarantee a high occupancy rate, it does suggest a steady need for rental properties. Landlords should consider conducting further research into vacancy rates and the local economy to better understand the stability of rental demand.
Lastly, an investor might wonder if voucher holders will be able to keep up with the market rents. Unfortunately, the data provided does not include information on the current market rents or the average voucher amount in ZIP 57553. Without these specifics, it's challenging to assess whether vouchers will remain competitive. Typically, voucher amounts are adjusted annually based on changes in the Consumer Price Index (CPI), but this adjustment may not always align perfectly with local market conditions.
In summary, while the FMR of $1160 provides a benchmark for affordability, it may not fully cover mortgage costs without additional context. The 25.0% renter demand suggests a viable market, though further investigation into local economic factors is advised. Lastly, the ability of vouchers to keep pace with market rents remains uncertain due to a lack of detailed data.
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.