Location: Harding County, SD | Metro: Harding County, SD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
The classification of ZIP code 57720 hinges on analyzing its yield and stability metrics. On the yield axis, the Federal Market Rent (FMR) for the $950 figure in the metro area for fiscal year 2026 contrasts sharply with the market rent of $586. This indicates a significant gap where properties could be leased at higher rates than the average market price, suggesting a high-yield potential.
However, the median home value stands at $204,133, which provides a baseline for investment costs. To gauge the actual yield, one must consider the difference between FMR and market rent, alongside the cost of property acquisition and maintenance. Given that the FMR is substantially above the market rent, there's an opportunity for higher rental income if the market adjusts to these higher values.
Moving to stability, the ZIP code has 18.9% of residents classified as renters, which is relatively low. This percentage implies that the majority of the population owns their homes, potentially leading to less demand for rentals and thus lower stability. The lack of data on days on market (DOM) makes it challenging to assess how quickly rental properties might turn over, which is crucial for consistent cash flow.
The median household income of $79,091 offers some insight into the economic health of the area. This figure suggests that residents have the financial capability to afford higher rents, but the low percentage of renters indicates that many may prefer homeownership. For landlords and small-portfolio investors, this ZIP code leans towards being a steady-cashflow zone. Despite the high-yield potential indicated by the FMR, the low percentage of renters and the need for the market to adjust to higher rental rates suggest that while returns can be good, they might not be as volatile or rapid as in a high-yield/low-stability market.
To summarize, the high FMR compared to market rent ($950 vs $586) and the median home value of $204,133 make ZIP 57720 attractive for those seeking higher yields. However, the low renter population (18.9%) and median income of $79,091 indicate a stable but not highly dynamic rental market, suitable for investors looking for reliable, long-term cash flows rather than quick flips.
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.