Location: Dewey County, SD | Metro: Corson County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 57656 are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $930 per month for FY 2026. This is the maximum amount that the housing authority will pay on behalf of eligible tenants. However, it's important to understand how this payment is structured and what it means for landlords.
The local market rent for a two-bedroom unit in ZIP 57656 is reported at $546 per month based on Census ACS data. When a tenant has a Section 8 voucher, they are responsible for paying a portion of the rent themselves, typically around 30% of their income. The housing authority then covers the difference between the tenant's contribution and the SAFMR.
To illustrate, if a tenant's portion of the rent is $279 (which would be 30% of an annual income of $11,160), the housing authority will pay the remaining amount up to the SAFMR of $930. This means the housing authority would pay $651 ($930 - $279).
Utility allowances also factor into the equation but are separate from the rent. These allowances vary by region and can range from $200 to $300 per month. In ZIP 57656, the allowance might be around $250, which is paid directly to the tenant to cover utilities.
Landlords should be aware that the SAFMR sets the cap for reimbursement, regardless of the actual market conditions. Even though the local market rent is significantly lower at $546, the housing authority will not pay more than $930 for a two-bedroom unit. Therefore, landlords who list their properties at or below the SAFMR stand to benefit from the higher reimbursement rates compared to the local market.
In ZIP 57656, the typical reimbursement gap or surplus for a two-bedroom voucher is a surplus of $384 per month. This surplus is calculated by subtracting the local market rent ($546) from the SAFMR ($930), minus the tenant's contribution ($279). This means landlords can expect a higher net income than the average market rent when renting to a Section 8 tenant in this 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.