Location: Dewey County, SD | Metro: Dewey County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
The ZIP code 57661 presents several challenges for potential Section 8 landlords. Firstly, tenant turnover could be a significant issue due to the discrepancy between the market rent of $616 and the Federal Market Rent (FMR) of $960 for fiscal year 2026, which is based on metro rates. This gap suggests that tenants might find it difficult to cover the difference, leading to higher turnover rates.
Vacancy exposure is another concern. The days on market (DOM) for properties in this area is not available, making it challenging to predict how long a property might remain vacant between tenants. A prolonged vacancy can lead to financial strain for landlords who rely on rental income to cover their mortgage and maintenance costs.
The deferred-maintenance exposure is also noteworthy. With a median income of $55,000 and no specific data on typical home values, landlords must be prepared for the possibility of tenants delaying necessary repairs. This scenario can increase the overall cost of maintaining the property and reduce its long-term profitability.
However, these risks are offset by the high renter share in the area, which stands at 71.4%. High renter density generally indicates a robust demand for rental housing, including Section 8 vouchers. This strong demand can stabilize occupancy rates and ensure a steady stream of qualified tenants seeking affordable housing options.
In conclusion, the risks associated with investing in Section 8 properties in ZIP code 57661 are moderate. Landlords should be prepared for potential tenant turnover and deferred maintenance issues but can expect a high volume of interested renters, which mitigates some of the financial risks.
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.