Location: Todd County, SD | Metro: Cherry County, NE
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 | $830 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $153,264 | 0.75% | D |
| 3BR | $1,460 | $235,184 | 0.62% | D |
| 4BR | $1,600 | $258,855 | 0.62% | D |
| 5BR | $1,856 | $300,858 | 0.62% | D |
U.S. Census Bureau data (2024)
The median income in Valentine, NE (ZIP 69201) stands at $62,101, which places significant constraints on the financial capacity of households to pay rent. The current market rate for rent is $886 according to the Census ACS data, indicating that even at the median income level, residents face challenges in affording housing without financial strain.
To put this into perspective, let’s consider the federal payment standard for housing vouchers, which is set at $1,060 for the metro area in fiscal year 2026. This figure exceeds both the median income and the market rate, highlighting a substantial gap in what residents can afford versus what is available through government assistance.
With 39.3% of the 4,012 population being renters, there is a notable demand for affordable housing. However, the disparity between the median income and the market rate suggests that many residents might struggle to find housing that fits their budget. This affordability gap can lead to increased competition among landlords for tenants who are able to pay the market rate, while those relying on vouchers may have fewer options available to them.
For landlords considering their rental strategies, the key takeaway is that voucher tenants provide a guaranteed income stream, albeit slightly above the current market rate. Vouchers ensure that the rent will be paid on time and in full, reducing the risk of vacancy and delinquency. On the other hand, cash-paying tenants may offer more flexibility but come with the uncertainty of whether they can consistently meet the higher market rate given the local economic conditions.
In summary, landlords in Valentine, NE should weigh the benefits of accepting vouchers, which can help fill units with reliable tenants, against the potential for higher rents from cash-paying tenants who must navigate a tight budget. The choice depends on balancing income stability with the desire to maximize rental revenue.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.