Location: Rapid City, 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 | $1,000 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $393,969 | 0.37% | F |
| 3BR | $1,850 | $532,019 | 0.35% | F |
| 4BR | $2,410 | $664,936 | 0.36% | F |
U.S. Census Bureau data (2024)
ZIP code 57745 encompasses a portion of Hill City, South Dakota, which is characterized by a small-town charm and a tight-knit community. The area has a total population of 1,894 residents, with 18.2% being renters. This indicates a primarily owner-occupied neighborhood where the local culture values homeownership. The median household income in this region stands at $88,194, reflecting a relatively affluent community compared to national averages.
The median home value in ZIP 57745 is $466,792, suggesting a robust housing market with properties that are well-maintained and valued highly. For potential investors interested in the rental market dynamics, it's crucial to understand the Federal Market Rent (FMR) versus the actual market rent. As of the fiscal year 2024, the FMR for the zip code is set at $1,010. In contrast, the Census ACS reports the average market rent at $1,196, indicating a gap between the two figures.
This discrepancy presents an opportunity for investors to evaluate their investment strategy based on the type of management they prefer. For those looking to operate hands-off with Section 8 vouchers, the lower FMR might be a deterrent due to the potential for reduced rental income compared to the market rate. However, for hands-on investors aiming to add value through property improvements and strategic management, the higher market rent could justify the effort required to bring properties up to voucher standards and beyond.
To summarize, ZIP 57745 is a small, affluent neighborhood within Hill City, SD, with a strong preference for homeownership. The rental market shows promise for value-add strategies but may fall short for hands-off operations relying solely on Section 8 vouchers. Investors should carefully consider their management approach and the potential for increasing property value and rental rates above the FMR.
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.