Location: Lawrence County, SD | Metro: Butte County, SD
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 | $860 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $333,202 | 0.37% | F |
| 3BR | $1,720 | $445,454 | 0.39% | F |
| 4BR | $2,070 | $510,539 | 0.41% | F |
| 5BR | $2,401 | $666,678 | 0.36% | F |
U.S. Census Bureau data (2024)
Spearfish, SD (ZIP 57783) is positioned within the Lawrence County, SD metro. The Fair Market Rent (FMR) for Spearfish is set at $1,080 for fiscal year 2026, which is significantly lower than the average market rent of $1,667. This discrepancy suggests that Spearfish could be considered a value pocket within the Lawrence County metro, offering rental opportunities at a price point that is more affordable compared to the broader market.
The median home value in Spearfish stands at $455,431, which is also below the typical home values seen in other ZIP codes within Lawrence County. This indicates that homeownership in Spearfish is relatively more accessible, making it an attractive option for both first-time buyers and investors looking for properties at a lower cost.
A notable feature of Spearfish is its 41.4% renter share, which is higher than the national average and suggests a strong demand for rental housing. This high percentage of renters combined with below-average home values and FMRs can signal a favorable environment for landlords and small-portfolio investors interested in Section 8 housing. Specifically, the higher renter share paired with more affordable property costs often points to areas where Section 8 vouchers are commonly used, providing a steady stream of tenants who are financially supported to cover their rent.
In comparison to other ZIP codes within Lawrence County, Spearfish presents itself as a distinct value pocket due to its lower FMR and home values. However, the high market rent figure of $1,667 might indicate some pockets of higher-priced rentals, possibly in certain segments of the market such as luxury apartments or newly renovated units. Despite this, the overall trend suggests that Spearfish offers better affordability and accessibility for rental investments.
To conclude, based on the specific figures provided, Spearfish, SD (ZIP 57783) appears to be a value pocket within the Lawrence County, SD metro, characterized by its below-average FMR and home values, coupled with a higher-than-average renter share. This combination makes it a promising area for Section 8-related investments, particularly for those seeking stable returns through rental income.
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.