Location: Bennett County, SD | Metro: Bennett County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 real estate market in ZIP 57574 reveals a significant gap between the Fair Market Rent (FMR) set by HUD for fiscal year 2026 and the actual market rent. For ZIP 57574, the FMR for a one-bedroom apartment is $1,080 per month. However, the current market rent for a one-bedroom is $937 per month, based on recent data.
This creates a gap of $143 per month, which represents approximately a 15.3% difference between the FMR and the market rent. In this scenario where the FMR is higher than the market rent, landlords can benefit from renting to voucher tenants because they receive a higher monthly payment from the government compared to what the open market offers. This makes it a yield play, as landlords can earn more income per unit than they would otherwise.
Given that there are 0.0% renters in the ZIP code, indicating a predominantly owner-occupied area, the median home value is not applicable. The median income for residents in ZIP 57574 is $2,499, suggesting a lower-income demographic. This context underscores the importance of the Section 8 program in providing affordable housing options for those who might otherwise struggle to find suitable accommodation.
Landlords should note that while renting to voucher tenants can offer higher yields, it also comes with certain responsibilities and requirements under the Section 8 program. These include maintaining the property to a certain standard and undergoing regular inspections. The higher FMR compared to market rent means that landlords can still attract and retain tenants while receiving government-subsidized payments that exceed the typical market rate.
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.