Location: Walworth County, SD | Metro: Campbell County, SD
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $103,274 | 1.14% | B |
| 3BR | $1,410 | $165,446 | 0.85% | C |
| 4BR | $1,760 | $188,427 | 0.93% | C |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 properties in ZIP code 57601, located in Mobridge, South Dakota, presents several challenges that potential landlords must consider. Firstly, the tenant turnover rate is a significant concern. At a market rent of $943, which is slightly below the Fair Market Rent (FMR) of $970 for the metro area, landlords might experience higher turnover rates due to the financial incentives of moving to areas with higher rental assistance payouts. This can lead to increased costs associated with finding new tenants and preparing units for occupancy.
Vacancy exposure is another critical factor. The Days on Market (DOM) figure is currently unavailable, which makes it difficult to predict how long a property might remain vacant between tenancies. Given the importance of maintaining steady cash flow, this uncertainty poses a notable risk to landlords.
Deferred maintenance is also a considerable issue. With a typical home value of $131,090 and a median income of $66,003, many homeowners may struggle to keep up with necessary repairs and upgrades. This could translate into higher maintenance costs for landlords who take over properties that have been neglected. However, the relatively lower property values mean that the initial investment cost is manageable, which can offset some of these concerns.
On the positive side, the high renter share of 26.8% suggests a robust demand for rental housing, including Section 8 vouchers. High renter density typically indicates a strong likelihood of finding tenants who qualify for and are willing to use rental assistance programs. This can provide a stable source of income for landlords, especially in an area where the supply of affordable housing is limited.
In summary, while there are risks associated with tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 57601 provides a solid foundation for demand. The overall assessment for a first-time Section 8 landlord in this area is moderate risk.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.