Location: Fall River County, SD | Metro: Custer County, SD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
U.S. Census Bureau data (2024)
The ZIP code 57735, located in Fall River County, South Dakota, offers a strategic fit within a Section 8 portfolio due to its characteristics as a cash-flow anchor. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $990, which is below the current market rent of $1,020. This creates a $30 spread where landlords can maintain positive cash flow while participating in the Section 8 program.
While appreciation plays typically require a high price-cut share and low days on market (DOM), the data for ZIP 57735 does not provide these figures, making it difficult to classify the area purely based on appreciation potential. However, the median home value of $165,147 suggests that the real estate market here is relatively stable and affordable, which can be beneficial for long-term investments focused on steady rental income rather than rapid capital gains.
ZIP 57735 also serves as a diversifier within a broader investment portfolio. With a renter share of 21.3%, there is a notable demand for rental properties in the area. Additionally, the median household income of $71,576 indicates that tenants have the financial capacity to meet their rental obligations. This stability in rental demand and tenant reliability can contribute to a balanced portfolio that includes both cash-flow generating and appreciation-focused assets.
In summary, ZIP 57735 is best suited as a cash-flow anchor for a Section 8 portfolio. Landlords can leverage the $30 spread between the FMR and market rent to ensure a steady income stream. Although the appreciation play is not clearly defined, the area's affordability and stable rental market make it a reliable choice for investors seeking consistent returns.
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.