Location: Dewey County, SD | Metro: Dewey County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
U.S. Census Bureau data (2024)
The ZIP code 57652, located in Dewey County, SD, presents a unique opportunity within a Section 8 portfolio strategy. This area should be considered a cash-flow anchor. The median family income here is $19,327, indicating a significant portion of the population relies on government assistance programs like Section 8.
The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, while the median market rent is $463. This substantial spread of $507 between the FMR and market rent means that landlords can secure higher rental incomes by participating in the Section 8 program. Given the low median home value (which is not available but likely low based on the county's overall median home value of $55K), the area is unlikely to be an appreciation play. There is no significant trend suggesting future price increases that would benefit investors looking for capital gains.
Furthermore, with a high renter share of 79.2%, there is a strong demand for rental properties, making it a reliable anchor for steady cash flow. Despite the low median income, the stability provided by the Section 8 program ensures consistent tenant payments, reducing the risk of vacancy and delinquency.
In conclusion, ZIP 57652 serves best as a cash-flow anchor within a Section 8 portfolio strategy due to the favorable spread between FMR and market rents, high renter share, and stable tenant payments through the Section 8 program.
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.