Location: Rapid City, SD | Metro: Rapid City, SD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 57725 focuses on the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 57725 in fiscal year 2024 is $1370. However, the market rent remains unspecified, suggesting that it could be higher or lower than the FMR.
In ZIP 57725, 19.0% of residents are renters, indicating a relatively low demand for rental properties compared to owner-occupied homes. The median household income is $48,214, which provides insight into the financial capabilities of potential tenants.
If the FMR exceeds the market rent, this scenario would position ZIP 57725 as a yield play for landlords and small-portfolio investors. Voucher tenants would ensure steady cash flow at rates above the prevailing market, thus providing a higher return on investment.
Conversely, if the FMR is less than the market rent, landlords who accept housing vouchers would incur a cost, renting their units below open-market rates. This could result in a lower net operating income per unit but still offer stability through government-backed payments.
To fully understand the implications, a direct comparison between FMR and market rent is necessary. Given the current data, we cannot definitively state whether the FMR is above or below the market rent, but the analysis clearly depends on this relationship.
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.