Location: Lawrence 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $230,259 | 0.53% | F |
| 3BR | $1,570 | $374,767 | 0.42% | F |
| 4BR | $1,970 | $652,617 | 0.3% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 57754, Lead, SD, for fiscal year 2024 is set at $1160. This figure represents the maximum amount that a landlord can receive from the Housing Choice Voucher program, commonly known as Section 8, for renting a unit to a qualified tenant. It is important to note that this is not the rent you will charge your tenants directly; it's the reimbursement limit for the voucher program.
In comparison, the average rent for the area, according to the Census Bureau's American Community Survey, is $844. This suggests that the FMR is higher than the typical market rate, which could be beneficial for landlords participating in the Section 8 program as it potentially allows for higher rents than those typically found in the local market.
The rental share in Lead, SD, is 24.2%, indicating that nearly one-quarter of the households in the area are renters. This provides insight into the demand for rental properties, suggesting that there is a significant number of potential tenants who might be interested in your property. Given the relatively low average rent of $844, the FMR of $1160 could make Section 8 vouchers attractive to many renters in the area.
When considering the acquisition cost of a property in Lead, SD, the median home value is around $372,639. This is a critical figure when evaluating whether a Section 8 rental is financially viable for you. The combination of the FMR and the local average rent can help determine if the income from a Section 8 rental will cover your mortgage payments, maintenance costs, and other expenses associated with owning a rental property.
Before proceeding with a Section 8 rental, verify that the property meets all the required standards set by the housing authority. These standards include safety, health, and structural conditions, ensuring that the unit is habitable and up to code. This step is crucial to avoid any delays in securing a tenant through the voucher program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.