Location: Brown County, SD | Metro: Dickey County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 58436, located in Brown County, SD metro, reveals several key points that will inform investment decisions. The HUD Fair Market Rent (FMR) for the area is set at $930 per month for fiscal year 2026, which is higher than the current market rent of $757 as reported by the Census ACS.
This difference suggests that voucher tenants will generally cashflow positively at the HUD FMR, indicating a strong potential for steady income. However, it's important to note that this positive cashflow is contingent upon securing rental properties at or below the HUD FMR. If market conditions push rents closer to the FMR, the positive cashflow might become marginal, especially considering property management costs and other expenses.
The median home value in the area is $138,135, leading to a rent-to-price ratio that supports the viability of rental investments over home purchases. This ratio indicates that renting is more financially advantageous than buying in this ZIP code, given the relatively low market rents compared to home values.
Regarding the days on market (DOM) and the percentage of price cuts, these metrics are not available, but they typically influence the rent-versus-buy decision. In their absence, we can infer that the current market conditions favor rental investments due to the favorable rent-to-price ratio.
The strongest investor angle in ZIP 58436 is likely to be cashflow, given the disparity between the HUD FMR and the current market rent, coupled with the median home value. This suggests that investors can expect to generate consistent positive cashflow from Section 8 voucher tenants in this area, making it an attractive option for those focused on immediate financial returns.
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.