Location: Meade 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 | $1,600 |
| 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 | $256,313 | 0.47% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 57761, located in New Underwood, SD, Pennington County, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For fiscal year 2024, the SAFMR for a two-bedroom apartment in ZIP 57761 is set at $1160. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent.
In contrast, the local market rent for a similar two-bedroom unit, based on Census ACS data, is $847. This discrepancy highlights the financial landscape landlords face when participating in the Section 8 program. To understand the actual reimbursement landlords receive, it's important to factor in the tenant's portion of the rent and any utility allowances.
The tenant's portion of the rent is typically 30% of their adjusted income. If we assume an average adjusted income for tenants in this area, the tenant would pay around $314 towards rent, leaving the remaining $846 to be covered by the voucher. However, since the SAFMR is higher at $1160, the voucher program would cover the difference between the tenant's payment and the SAFMR up to the maximum limit.
Utility allowances can vary but are generally capped at certain amounts per bedroom size. For a two-bedroom apartment, the allowance might be around $200, depending on local energy costs. This allowance is additional to the rent reimbursement and directly paid to the tenant to cover utilities.
Landlords should note that the SAFMR of $1160 applies exclusively to this specific ZIP code, meaning that it reflects the unique cost of living conditions in New Underwood, SD. Given the local market rent of $847, landlords in this area will likely see a surplus of $313 per month when a voucher is used for a two-bedroom unit. This surplus is calculated by subtracting the local market rent from the SAFMR, assuming the tenant's share plus the voucher equals the SAFMR.
To summarize, landlords in ZIP 57761 can expect the Section 8 program to reimburse them up to $1160 for a two-bedroom rental unit, with the tenant contributing approximately $314 based on their income. Utility allowances add another layer of support to tenants, typically around $200. Consequently, landlords will generally see a surplus of $313 per month over the local market rent when renting to a tenant with a voucher for a two-bedroom unit.
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.