Location: Custer 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 | $860 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $399,636 | 0.31% | F |
| 3BR | $1,710 | $536,131 | 0.32% | F |
| 4BR | $2,070 | $568,631 | 0.36% | F |
U.S. Census Bureau data (2024)
The ZIP code 57730, located in Custer, South Dakota, has a population of 5,596 individuals, with 19.6% being renters. This indicates that it is primarily a homeowner-dominated area rather than a renter-heavy zone. The median household income in this ZIP code stands at $83,469, which provides a useful benchmark when assessing the rental market.
The average market rent in ZIP 57730 is $1,087 per month. This represents approximately 15.4% of the median household income, calculated by dividing the monthly rent by the annual income ($1,087 / $83,469 * 12 months). This percentage suggests that typical rent is a significant but manageable portion of the local income, indicating that while some residents might find the rent challenging, many others could afford it without substantial financial strain.
Comparing the market rent to the Fair Market Rent (FMR) set by HUD for the fiscal year 2024, which is $1,240 for this ZIP code, shows that the current market rent is below the FMR. This discrepancy means that landlords can potentially increase rents slightly to align with the FMR, or they might choose to keep rents lower to attract tenants in a less dense rental market.
In terms of voucher availability, the scarcity of renters in ZIP 57730 suggests that the demand for housing vouchers under the Section 8 program is likely to be limited. However, given the median income level and the relatively high FMR, landlords should still consider the possibility of having tenants who rely on Section 8 vouchers. These tenants will have their rent capped at the FMR, making it essential for landlords to understand the voucher system and its implications for rental pricing and eligibility.
A landlord in ZIP 57730 can expect tenants who are likely to be financially stable due to the higher median income levels. While the number of voucher users might be fewer compared to more urban areas, those who do use vouchers will be carefully vetted through the Section 8 program, ensuring they meet the necessary criteria for tenancy. Landlords should also be prepared to manage expectations around rent increases and possibly work within the constraints of voucher caps to maintain occupancy rates.
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.