Location: McPherson County, SD | Metro: Dickey County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The ZIP code 58413 is situated in a rural area with a total population of 966 residents. Approximately 24.5% of these residents are renters, indicating a modest demand for rental properties. The median household income in this area stands at $51,250, suggesting that while not affluent, it is a community where most households can afford basic living expenses. However, the median home value is not available, which might imply that the housing market is less developed or that there is insufficient data to provide an accurate figure.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $930. In contrast, the current market rent, according to Census ACS data, is $710. This discrepancy between the FMR and the actual market rent highlights a potential opportunity for landlords who can leverage the higher FMR rates through Section 8 vouchers, thereby increasing their rental income above the local market rate.
Given these conditions, ZIP 58413 could be a suitable location for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the ability to secure higher rents through Section 8 vouchers reduces the risk and management burden associated with collecting rent from tenants who might struggle to pay market rates. On the other hand, for value-add buyers looking to improve property values and rents, the lower current market rent compared to the FMR presents a chance to enhance property quality and potentially command higher rents, especially if they align with the Section 8 program's requirements.
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.