Section 8 Fair Market Rent (FMR) for ZIP 57657 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$750
1 Bedroom	$910
2 Bedrooms	$1,080
3 Bedrooms	$1,380
4 Bedrooms	$1,580
5 Bedrooms	$1,833
6 Bedrooms	$2,053
7 Bedrooms	$2,217
8 Bedrooms	$2,328

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, ZIP 57657 (Trail City, SD) can be considered an excellent diversifier within a Section 8 portfolio strategy. With a median home value of $81,000, it stands out as significantly lower compared to the national median of $338,100. This affordability makes it attractive for low-income renters who qualify for Section 8 assistance.

The spread between the Fair Market Rent (FMR) of $950 for the metro area in fiscal year 2026 and the actual market rates in ZIP 57657 is substantial, indicating that properties here can generate positive cash flow for landlords. However, given the lack of specific local rental data, we rely on the broader metro context.

A key characteristic of ZIP 57657 is its high renter share of 12.0%. This suggests a robust demand for rental properties, particularly those affordable under the Section 8 program. Although the median income data is not provided, the low median home value implies that many residents likely fall into the income bracket eligible for federal housing assistance.

Diversification is critical in real estate investing to mitigate risks associated with any single market. ZIP 57657 offers a unique opportunity due to its distinct economic profile and low property values. It provides a stable tenant base through the Section 8 program, ensuring consistent cash flow even if the broader housing market experiences fluctuations.

While appreciation potential in ZIP 57657 cannot be determined with the current data, the focus should be on its role as a diversifier. Given the limited supply of affordable rental units in many urban areas, ZIP 57657 serves as a counterbalance, offering a mix of rural stability and federal support for tenants.

In conclusion, ZIP 57657 is best suited as a diversifier in a Section 8 portfolio. Its low median home value of $81,000 and significant renter share make it an ideal location for landlords seeking to balance their investment portfolio with properties that ensure steady cash flow 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.