Location: Butte County, SD | Metro: Meade County, SD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1160 for ZIP 57788 in fiscal year 2024 will sufficiently cover the mortgage on a home in this area. However, the median home value data is currently unavailable, making it difficult to provide a direct comparison between the FMR and typical mortgage payments. Without the median home value, we cannot accurately estimate the average mortgage cost.
The investor could also express concern over the level of rental demand in the area, given that only 9.2% of the properties are rented out. This low percentage suggests a relatively small pool of renters compared to homeowners. Nonetheless, rentals in ZIP 57788 typically range from $300 to $499 per month when utilities are included. This indicates that while the demand is not high, there is still a market for rental properties, especially those priced below the FMR.
Another point of contention could be the ability of voucher programs to keep pace with market rents. Unfortunately, the data does not specify the current average voucher amount for ZIP 57788, nor does it provide any projections regarding future adjustments. Given the FMR is set at $1160, it's crucial for voucher amounts to be adjusted accordingly to maintain affordability for low-income tenants. Landlords should monitor local housing authority announcements for any changes in voucher policies and amounts.
In summary, while the FMR of $1160 offers insight into the rental market, the lack of median home value data hinders a comprehensive analysis of the mortgage situation. The rental market, though modest, still provides opportunities for landlords. Voucher programs' ability to match market rents remains uncertain without specific data points, but vigilance in tracking policy updates is advised.
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.