Location: Corson County, SD | Metro: Sioux County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate for ZIP code 57660 reveals a complex picture due to limited data availability. The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $930 per month. To calculate the annualized rental income, we multiply this figure by 12, yielding an annual rental income of $11,160.
The median home value in ZIP 57660 is not available, which complicates the calculation of the gross yield based on market rents. However, assuming that the market rent would be higher than the FMR, we can infer that the gross yield derived from the FMR would likely be lower than what could be achieved with market rents.
To determine the gross yield, we need to consider the property value. Since the median home value is not available, let's assume a hypothetical value of $200,000 for illustrative purposes. Using the FMR, the gross yield would be calculated as follows:
In reality, the median home value is likely different, which would affect the actual gross yield. Given the 28.6% renter density, it suggests that a significant portion of the population in ZIP 57660 relies on rental housing, including those who might qualify for Section 8 vouchers. This high renter density supports the feasibility of finding tenants willing to use Section 8 vouchers, thus making the FMR-based gross yield a more realistic scenario.
The Days on Market (DOM) is also not available, which means we cannot accurately gauge how quickly properties are rented out. However, the high renter density implies that demand for rental properties, especially those accepting Section 8 vouchers, is strong, potentially leading to shorter DOM periods.
While the gross yield using market rents would be higher, the lack of specific market rent data makes it difficult to provide an exact figure. The FMR-based gross yield of 5.58%, while lower, is more reliable given the available data. Landlords and small-portfolio investors should focus on the FMR-based scenario until more precise market rent data becomes available.
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.