Location: Meade County, SD | Metro: Meade County, SD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 57792 are straightforward and can be easily understood by landlords and small-portfolio investors. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1160. This figure represents the maximum amount that the housing authority will pay towards rent for a two-bedroom unit in ZIP 57792.
To break it down further, the voucher system works by covering the difference between what a low-income tenant can afford and the actual rent of the apartment. Typically, the tenant is responsible for paying 30% of their adjusted income toward rent. For instance, if a tenant's monthly adjusted income is $1000, they would pay $300 toward rent. The housing authority then covers the remainder up to the SAFMR limit.
In addition to the base rent, there are utility allowances that vary depending on the location and type of utilities used. These allowances are designed to help cover the cost of electricity, gas, water, and other essential services. In ZIP 57792, the utility allowance for a two-bedroom apartment is included in the overall reimbursement but is not specified separately in the SAFMR figure.
Given the SAFMR of $1160, if a landlord charges more than this amount, the additional cost must be covered entirely by the tenant. Conversely, if the landlord charges less than $1160, the tenant will still pay their 30% of adjusted income, and the rest will be paid by the housing authority, ensuring the landlord receives the full rent. However, it's important to note that the local market rent for ZIP 57792 is currently unavailable, which means you cannot directly compare the SAFMR to the average market rates.
When calculating the typical reimbursement gap or surplus for a two-bedroom apartment, you need to consider the tenant's payment and the housing authority's contribution. If the market rent is higher than the SAFMR, landlords will experience a reimbursement gap, meaning they won't receive the full market rent from the voucher program. If the market rent is lower than the SAFMR, landlords will have a surplus, where the housing authority pays more than the market rent.
Without specific local market rent data, we can only rely on the SAFMR to guide our expectations. Landlords should aim to set their rents close to the SAFMR to avoid either a significant reimbursement gap or surplus. This ensures steady, predictable cash flow from the Section 8 program.
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.