Location: Todd County, SD | Metro: Cherry County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 69212 highlights several potential challenges for landlords and small-portfolio investors considering Section 8 properties. Tenant turnover is a significant concern, with the market rent at $264 being notably lower than the Fair Market Rent (FMR) of $1,020 for the metro area (as of FY 2026). This discrepancy can lead to higher turnover rates as tenants seek more affordable housing options that better match their income levels.
Vacancy exposure poses another risk. The lack of available data on the number of days on market (DOM) suggests that there might be inconsistencies in rental demand, which could result in extended periods of vacancy. Such vacancies can significantly impact cash flow, especially when combined with the lower market rent.
Deferred maintenance exposure is also a critical factor. Without specific data on typical home values and median incomes in ZIP 69212, it's challenging to assess the financial capacity of landlords to maintain properties adequately. Poor maintenance can lead to increased repair costs and potential legal issues if the property does not meet the required standards set by the Housing Choice Voucher program.
However, these risks must be weighed against the high renter share in the area, which stands at 44.6%. A high percentage of renters often translates into a robust demand for rental housing, including those supported by Section 8 vouchers. This demand can provide a steady stream of tenants, potentially mitigating some of the risks associated with vacancy and turnover.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 69212 is moderate. While there are significant challenges, particularly with tenant turnover and vacancy exposure, the high renter share offers a counterbalance that can support a successful investment strategy.
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.