Location: Meade County, SD | Metro: Rapid City, SD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,270 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $3,040 |
| 5 Bedrooms | $3,526 |
| 6 Bedrooms | $3,949 |
| 7 Bedrooms | $4,265 |
| 8 Bedrooms | $4,478 |
U.S. Census Bureau data (2024)
The ZIP code 57706 is located in a predominantly rental-focused neighborhood with a total population of 2,787, where every resident is a renter. The median income for residents in this area stands at $57,162, indicating a middle-class community that relies heavily on rental housing.
Given that there is no median home value reported, it's evident that the area is almost exclusively composed of rental properties, which makes it an interesting target for real estate investors looking to enter the rental market. The Fair Market Rent (FMR) for ZIP 57706, set for fiscal year 2024, is $1,420. This figure contrasts with the market rent of $1,738 as reported by the Census ACS, suggesting a premium of about $318 per unit above the FMR.
For hands-off voucher operators, this ZIP code offers a stable investment opportunity. The high percentage of renters and the established FMR provide a reliable framework for receiving Section 8 rental subsidies. However, the gap between the FMR and market rent indicates that there might be room for hands-on value-add buyers to improve property conditions and command higher rents, thereby potentially increasing their revenue beyond what voucher-only operators could achieve.
In conclusion, ZIP 57706 presents itself as a solid choice for hands-off investors due to its reliance on rental housing and the guaranteed income from Section 8 vouchers. For those willing to actively manage and enhance their properties, there is potential to capture additional market rent, making it a viable option for both passive and active investors.
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.