Location: Todd County, SD | Metro: Cherry County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The median income in ZIP code 69216 stands at $53,500. This figure provides crucial context for understanding the financial capabilities of potential tenants. However, the market rate for rent in this area is currently unavailable, which makes it challenging to assess the direct affordability for households based on their income alone.
When comparing the financial situation of renters to the housing assistance provided through vouchers, the picture becomes clearer. The Fair Market Rent (FMR) for ZIP 69216, set at $1,020 per month for the fiscal year 2026, represents the average amount a voucher holder would pay for housing. This standard helps ensure that tenants can find suitable accommodation without spending an excessive portion of their income on rent.
In ZIP 69216, where 45.7% of the population are renters, the affordability gap between the median income and the market rate for rent, if higher than the voucher payment standard, could significantly impact the competition among landlords. If the market rate exceeds the FMR, landlords who accept vouchers might face less competition for tenants compared to those relying solely on cash-paying renters. Voucher holders have a guaranteed source of funding, making them a reliable tenant base.
For landlords considering whether to accept vouchers or focus on cash-paying tenants, the decision should be informed by the local rental market dynamics. Accepting vouchers can provide a steady stream of tenants, albeit at a fixed rate. On the other hand, focusing on cash-paying tenants could potentially offer higher monthly rents, but this strategy depends on the availability of renters willing and able to pay above the voucher standard. Given the limited data on market rates, landlords should be cautious about overpricing properties and consider the benefits of diversifying their tenant mix to include both voucher and cash-paying renters.
The takeaway for landlords is to evaluate the risks and rewards of both strategies. While accepting vouchers ensures a stable income, pursuing cash-paying tenants requires a thorough understanding of the local economic conditions and the willingness to adjust pricing accordingly to attract and retain tenants.
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.