Clay County, SD: Fair Market Rent 2027 and Income Limits

Official HUD figures for landlords and renters, effective October 1, 2026 (rents) and May 1, 2026 (income limits).

$1,0222-bedroom FMR, FY2027

$8211-bedroom FMR, FY2027

$84,10080% income limit, family of 4 (FY2026)

$105,100Median family income (FY2026)

The FY2027 Fair Market Rent for a two-bedroom unit in Clay County is $1,022 a month, up 10.0% from $929 in FY2026. Clay County belongs to the Clay County, SD FMR area (non-metro county), so the same figures apply across that area. FMRs are gross rents: rent plus all tenant-paid utilities except phone, cable and internet.

Fair market rent in Clay County by bedroom count

Unit size	FY2027 FMR	FY2026 FMR	Change	Payment standard range (90–110%)
Studio	$712	$641	+11.1%	$641 – $783
1 bedroom	$821	$708	+16.0%	$739 – $903
2 bedrooms	$1,022	$929	+10.0%	$920 – $1,124
3 bedrooms	$1,415	$1,292	+9.5%	$1,274 – $1,556
4 bedrooms	$1,708	$1,558	+9.6%	$1,538 – $1,878

Source: HUD Fair Market Rents FY2027 (effective October 1, 2026) and FY2026 (revised file), details.

What can a landlord charge a Section 8 tenant here?

The FMR is not a cap on what you can ask on the open market. For a Housing Choice Voucher tenant, the local housing authority sets a payment standard, normally between 90% and 110% of the FMR (or of the ZIP-level Small Area FMR where those apply). For a two-bedroom unit in Clay County that is typically $920 to $1,124 including utilities. You can charge more than the payment standard if the rent passes the housing authority's rent-reasonableness test and, at move-in, the tenant's share stays within 40% of their adjusted monthly income. Ask the housing authority for its current payment standard schedule.

Can local renters afford the fair market rent?

$31,200median income of renter households

$770Median gross rent, all units

30%Rent-to-income ratio (median rent ÷ median renter income)

49%of renter households pay 30% or more of income on rent

At the 30% rule, a renter household earning the local median of $31,200 can afford about $780 a month including utilities. The FY2027 two-bedroom Fair Market Rent of $1,022 is $242 (31.0%) more than that. To rent a two-bedroom at the FMR, a household needs $40,880 a year under the 30% rule, or $36,792 under the common landlord rule that income must be three times the rent.

Clay County, ACS 2020–2024	Estimate ± MOE
Median gross rent (rent + utilities)	$770 ±$55
Median income of renter households	$31,200 ±$12,723
Renters paying 30% or more of income (cost-burdened)	49.2% ±12.0
Renters paying 50% or more (severely cost-burdened)	33.7% ±10.0
Renter households (where the share can be computed)	2,420

Change since 2015–2019

	ACS 2015–2019	ACS 2020–2024	Change
Median gross rent	$741	$770	+3.9%
Median renter household income	$25,690	$31,200	+21.4%
Renters paying 30%+ of income	56.8%	49.2%	−7.6 pts

Rent-to-income calculator: does an applicant qualify? → · Most affordable counties to rent in this state →

Source: U.S. Census Bureau, American Community Survey 5-Year Estimates 2020–2024 and 2015–2019 (tables B25064, B25119, B25070). ± = margin of error at 90% confidence. Dollar figures are not adjusted for inflation.

HUD income limits for Clay County (FY2026)

Income limits decide who qualifies for Section 8 vouchers, public housing and most HUD-assisted units. The area median family income is $105,100 (FY2025: $103,700, +1.4%). Small figures under each limit show the change from FY2025.

Household size	1 person	2 people	3 people	4 people	5 people	6 people	7 people	8 people
Extremely low income (30%)	$22,100 +1.4%	$25,250 +1.4%	$28,400 +1.4%	$33,000 +2.6%	$38,680 +2.7%	$44,360 +2.8%	$50,040 +2.9%	$55,720 +2.9%
Very low income (50%)	$36,800 +1.4%	$42,050 +1.3%	$47,300 +1.4%	$52,550 +1.4%	$56,800 +1.4%	$61,000 +1.4%	$65,200 +1.4%	$69,400 +1.4%
Low income (80%)	$58,900 +1.4%	$67,300 +1.4%	$75,700 +1.3%	$84,100 +1.4%	$90,850 +1.4%	$97,600 +1.4%	$104,300 +1.4%	$111,050 +1.4%

The 30% limit is HUD's “extremely low income” limit: the higher of 30% of median income or the federal poverty guideline, but never above the 50% limit. That is why it can rise faster than 30% of median for larger households. Tax-credit (LIHTC) properties use separate Multifamily Tax Subsidy Project limits.

Source: HUD Section 8 Income Limits FY2026 (effective May 1, 2026) and FY2025, details.