FMR is near market; voucher and private rents are aligned.
1.00
1 BR
1 BR- 57201
1.03ratio
FMR$940
Market$910
vs market+$30
FMR is near market; voucher and private rents are aligned.
1.03
2 BR
2 BR- 57201
0.96ratio
FMR$1,230
Market$1,280
vs market-$50
FMR is near market; voucher and private rents are aligned.
0.96
3 BR
3 BR- 57201
1.09ratio
FMR$1,500
Market$1,380
vs market+$120
FMR is near market; voucher and private rents are aligned.
1.09
4 BR
4 BR- 57201
1.41ratio
FMR$1,710
Market$1,210
vs market+$500
FMR is above market; underwrite to market rent.
1.41
0.700.800.901.001.101.201.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--
Watertown, SD fair market rent, FY 2027
For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in Watertown, SD is $1,230 a month. That is up 13.9% from $1,080 in FY 2026. Watertown is in the Hamlin County, SD non-metropolitan FMR area. HUD also publishes the ZIP-level Small Area FMRs shown here, but unless the local housing authority has adopted them, vouchers are based on the county-wide two-bedroom FMR of $1,014. The median county two-bedroom FMR in South Dakota is $1,033, so Watertown is 19% above it.
FY 2027 rent by bedroom
FY 2027 fair market rent by bedroom for Watertown, SD
Bedrooms
FY 2026
FY 2027
Change
90–110% range
Studio
$740
$870
+17.6%
$783–$957
1BR
$820
$940
+14.6%
$846–$1,034
2BR
$1,080
$1,230
+13.9%
$1,107–$1,353
3BR
$1,320
$1,500
+13.6%
$1,350–$1,650
4BR
$1,600
$1,710
+6.9%
$1,539–$1,881
Fair market rent history, FY 2023–2027
Fair market rent by fiscal year for Watertown, SD
Fiscal year
Studio
1BR
2BR
3BR
4BR
FY 2027
$870
$940
$1,230
$1,500
$1,710
FY 2026
$740
$820
$1,080
$1,320
$1,600
FY 2025
$690
$760
$1,000
$1,270
$1,600
FY 2024area FMR
$613
$695
$905
$1,225
$1,229
FY 2023area FMR
$575
$660
$826
$1,156
$1,160
Marked years use a different HUD benchmark than FY 2027, so they are not a like-for-like change.
Questions about Watertown, SD rents
How much will Section 8 pay for a two-bedroom in Watertown, SD?
Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With the county-wide two-bedroom FMR of $1,014, which applies unless the housing authority uses Small Area FMRs, that basic range is $913 to $1,115 a month; under the ZIP-level Small Area FMR of $1,230 it would be $1,107 to $1,353. The voucher pays the lower of the payment standard or the gross rent, minus the tenant's share, which is usually about 30% of adjusted monthly income. Confirm the local housing authority's current schedule before underwriting.
Which HUD fair market rent area is Watertown, SD in?
Watertown, SD is in the Hamlin County, SD non-metropolitan FMR area. Small Area FMRs are optional here; the county-wide two-bedroom FMR is $1,014.
How much did fair market rent change in Watertown, SD for FY 2027?
The two-bedroom FMR rose 13.9%, from $1,080 in FY 2026 to $1,230 in FY 2027. Since FY 2025 it has risen 23.0%.
When do FY 2027 fair market rents take effect?
HUD's FY 2027 fair market rents took effect on October 1, 2026. When FMRs change, housing authorities generally have up to three months to bring payment standards back within 90% to 110% of the new FMR.
Source: HUD FY 2027 Small Area Fair Market Rents and area FMRs. Payment-standard ranges are 90% to 110% of FMR, HUD's basic range, not a housing authority's published schedule. How payment standards are set