Location: Jackson County, SD | Metro: Rapid City, SD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
U.S. Census Bureau data (2024)
ZIP 57750 in Jackson County, South Dakota, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 is set at $1160, which is significantly higher than the market rent of $907. This creates a positive spread that benefits landlords participating in the Section 8 program. The higher FMR ensures that tenants receive sufficient subsidies to cover the cost of renting, stabilizing cash flow.
The median home value in ZIP 57750 is not available, indicating a lack of significant investment in property values. This makes the area less attractive for appreciation plays, where landlords aim to benefit from rising property values over time. Instead, the focus should be on the steady rental income provided by the Section 8 program.
A cash-flow anchor is crucial for any real estate portfolio because it provides reliable and consistent income. ZIP 57750, with its high FMR compared to market rent, offers just that. Landlords can expect stable returns without the volatility associated with fluctuating market rents.
The renter share in this ZIP code stands at 54.8%, suggesting a moderate demand for rental properties. While this figure does not indicate a high concentration of renters, it still supports the viability of rental investments, particularly those aimed at securing stable income through the Section 8 program.
In conclusion, ZIP 57750 is best suited as a cash-flow anchor in a Section 8 portfolio due to the substantial difference between the FMR and market rent. This strategy will ensure steady and predictable income, which is essential for landlords and small-portfolio investors looking to maintain financial stability.
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.