Location: Sully County, SD | Metro: Hughes County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
Skeptical investors considering real estate investments in ZIP code 57564 often have several key concerns. Let's address them directly using available data.
Objection 1: Will FMR $950 (metro FY 2026) cover the mortgage on a $244,034 home?
The Fair Market Rent (FMR) for ZIP 57564 in fiscal year 2026 is projected to be $950. To determine if this will sufficiently cover the mortgage on a home valued at $244,034, we must consider the prevailing interest rates and typical loan terms. Assuming an average fixed-rate mortgage of 4.5% over a 30-year term, the monthly mortgage payment would be approximately $1,190. This indicates that the FMR alone is insufficient to cover the mortgage payment. Landlords would need to rely on other sources of income or leverage higher rental rates to meet financial obligations.
Objection 2: Is there enough renter demand at 19.3%?
The rental occupancy rate in ZIP 57564 stands at 19.3%. This percentage suggests a relatively low demand for rental properties compared to areas with higher occupancy rates. However, it also implies that there is room for growth. A lower occupancy rate can be advantageous for new entrants into the market, as it reduces competition and allows for potential increases in rental rates as demand grows. It is important to note that while the current demand may seem limited, it does not necessarily indicate future trends. Economic changes, population shifts, or local developments could increase the rental market's attractiveness.
Objection 3: Will vouchers keep pace with $945 market rents?
The market rent in ZIP 57564 is currently $945. The question of whether housing vouchers will keep up with these rents depends on federal funding and policy adjustments. Historically, voucher amounts have increased annually to account for inflation and rising costs. However, the data does not provide specific projections for voucher increases in ZIP 57564. It is advisable for investors to monitor local HUD announcements and national trends to anticipate any changes that might impact their bottom line.
In conclusion, while the FMR does not fully cover the mortgage on a home priced at $244,034, there are opportunities for growth in the rental market. The current occupancy rate leaves room for expansion, but investors should remain vigilant about the potential for increased competition. Lastly, the reliability of housing vouchers to support market rents remains uncertain without specific forecasts, necessitating ongoing attention to policy updates and economic indicators.
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.