Location: Meade County, SD | Metro: Rapid City, SD HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,170 | $225,520 | 0.52% | F |
| 2BR | $1,530 | $317,377 | 0.48% | F |
| 3BR | $1,960 | $434,965 | 0.45% | F |
| 4BR | $2,550 | $533,705 | 0.48% | F |
| 5BR | $2,958 | $684,354 | 0.43% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 57702, located in Rapid City, South Dakota, Pennington County, can be straightforward when understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is $1220. This figure represents the maximum amount that the Housing Choice Voucher program will pay for a unit of this size in this particular area.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), for a two-bedroom apartment in ZIP 57702 is $1313. This is the average rent that landlords typically charge for similar units in the area.
A voucher holder's rent payment is calculated based on their income. Generally, they are expected to pay 30% of their adjusted monthly income toward rent. For instance, if a tenant's adjusted monthly income is $1000, they would pay $300 towards rent. The remaining balance is then paid by the Section 8 program up to the SAFMR limit of $1220.
In addition to the base rent, the Section 8 program also provides an allowance for utilities. These allowances vary but are typically around $200-$300 per month for a two-bedroom unit. This utility allowance is not included in the SAFMR but is a separate payment made directly to the landlord.
To illustrate, consider a scenario where a tenant pays $300 towards rent, and the utility allowance is $250. In this case, the total reimbursement from the Section 8 program would be $1470 ($300 tenant contribution + $1220 base rent + $250 utility allowance).
However, since the local market rent for a two-bedroom unit is $1313, the landlord would receive a surplus of $157 above the market rate. This surplus can be significant for landlords who are concerned about the potential shortfall between the SAFMR and the local market rent.
It is important to note that the SAFMR is set specifically for this ZIP code, meaning it reflects the rental conditions and costs unique to ZIP 57702. This localized approach aims to ensure that the subsidy accurately covers the cost of renting in the area.
In conclusion, for a two-bedroom unit in ZIP 57702, landlords can expect a typical reimbursement of $1470 when the tenant portion and utility allowances are factored into the SAFMR of $1220. This results in a surplus of $157 compared to the local market rent of $1313.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.