Location: Perkins County, SD | Metro: Harding County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The ZIP code 57649 presents a unique set of characteristics when evaluated against the criteria of yield and stability for real estate investment, particularly in the context of Section 8 properties.
On the axis of yield, the analysis is somewhat limited due to the lack of specific market and home value data. However, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $930. This figure indicates the maximum rent that can be charged for a Section 8 property in this area, suggesting a moderate potential for rental income. Without comparative market and home value data, it's challenging to assess the overall yield potential accurately beyond this FMR benchmark.
Moving to the axis of stability, the ZIP code reveals a mixed picture. The percentage of renters is quite low at 7.0%, which could imply a less stable tenant pool. Additionally, the absence of day DOM (days on market) data further complicates the assessment of how quickly properties might turn over, which is crucial for understanding the stability of cash flow. On a positive note, the median household income is reported at $84,500, which is a strong indicator of economic stability within the area, potentially leading to better-paying tenants and lower default risks.
Given these specifics, ZIP 57649 does not clearly fit into either a high-yield/low-stability flip-style market or a steady-cashflow zone. The low percentage of renters suggests instability in terms of finding and retaining tenants, while the absence of key market indicators such as home values and days on market leaves gaps in the yield evaluation. However, the solid median income figure points towards a more stable financial environment for those who manage to secure tenancy.
In conclusion, this ZIP code appears to be a middle-ground opportunity where the potential for rental income is present but may require careful management to mitigate the risks associated with a low renter population. Investors should focus on securing reliable tenants and consider the economic stability of the area as a significant factor in their investment strategy.
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.