Location: Perkins County, SD | Metro: Perkins County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 57640 reveals a unique balance between yield and stability that does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. The Federal Market Rent (FMR) for the area stands at $960 for fiscal year 2026, which suggests a moderate rental yield considering the lack of market and home value data.
The stability of the market is influenced by several factors, including the percentage of renters and median household income. With 16.7% of residents being renters, the market shows a relatively low level of tenant activity, which could indicate a preference for homeownership or a smaller rental pool. However, the median household income of $250,011 provides a strong financial foundation for potential renters, enhancing the overall stability of the rental market.
The absence of specific data points for market rent and home values introduces uncertainty into the yield assessment. Nevertheless, given the FMR figure and the high median household income, landlords can expect reasonable cash flow without the volatility typically associated with flip-style markets. This ZIP code leans more towards a steady-cashflow zone due to the robust income levels supporting rental payments, even if the exact market dynamics remain unclear.
To summarize, ZIP 57640 offers a middle-ground scenario where the potential for steady cash flow is present, driven by the high median household income, but the limited data on market conditions prevents a definitive classification as a high-yield market. Landlords should focus on properties that can attract the 16.7% of renters at or near the FMR of $960, leveraging the stability provided by the economic strength of the area.
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.