Location: Rapid City, SD | Metro: Rapid City, SD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
The HUD Fair Market Rent (FMR) for ZIP code 57709 in Rapid City, South Dakota, for fiscal year 2024 is set at $1160. This figure represents the maximum amount that voucher holders can pay towards rent under the Section 8 program. However, the market rent data for this area is currently unavailable, making it difficult to directly compare the HUD FMR to local rental rates.
Despite the lack of market rent data, we can infer that voucher tenants in ZIP 57709 will likely cashflow at the HUD FMR rate. This is because the FMR is designed to be a benchmark that ensures affordability for low-income families, and it typically aligns closely with the lower end of the market rent spectrum. If the actual market rents are higher, which is often the case, then landlords accepting Section 8 vouchers would see positive cashflow from these tenants.
The median home value in ZIP 57709 is also not available, which means we cannot calculate a precise rent-to-price ratio. However, even without this specific number, it's important to note that the rent-to-price ratio is a key indicator of the relative affordability of renting versus buying. In areas where home values are high compared to rental rates, renting tends to be more attractive. Conversely, when home values are low and rental rates are high, buying becomes more appealing.
The Days on Market (DOM) and price-cut share percentages for the rental market are not provided, but these metrics would give insight into the speed and ease of finding tenants. A lower DOM suggests a faster leasing process, while a higher percentage of price cuts indicates more competitive pricing among landlords.
The strongest angle for Section 8 investors in ZIP 57709 is likely cashflow. Given the established HUD FMR and the typical market conditions where rental rates exceed this figure, landlords can expect to maintain a positive cashflow position. This makes the area particularly attractive for investors looking to generate steady income through rental properties.
Data Sources: FMR data from HUD (2027).
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.