Milbank a city in Grant County, South Dakota
This city is served by the Milbank Housing & Redevelopment Commission
Milbank is a city in Grant County, South Dakota. The population of Milbank, according to the 2010 Census, is 3,353. The total number of households in the city is 1,508. The average household size for Milbank is 2.15. The total number of renter households in the city is 470 which means that 31.2% of households are renter households.
Milbank’s Federally assisted affordable rental housing stock includes properties financed through the following programs:
|Note: The total does not necessarily equal the sum of each program as some properties may participate in multiple funding programs.|
The average number of units per property for affordable rentals in Milbank is 29.60. The largest Federally assisted affordable rental community in the city is Columbus Heights at 60 units and the smallest is Eastwood Apartments at 12 unit(s). 1 apartment properties provide housing for seniors containing 24 units. Of the 148 units, units include some form of rental assistance (like Section 8) to make rent more affordable for very low income families.
Federally Assisted Units By Property
|Name||Sec 8||Sec 811||Sec 202||LIHTC||RD 515||Sr||Total Units|
|Pheasant Valley Courtyard||60||-||-||-||-||-||60|
Rental Assistance for Tenants in Milbank
Rental assistance is a type of housing subsidy that pays for a portion of a renter’s monthly housing costs, including rent and tenant paid utilities. This housing assistance can come in the form of Section 8 Housing Choice Vouchers, project-based Section 8 contracts, public housing, USDA Rental Assistance (in Section 515 properties) as well as HUD Section 202 and 811 properties.
In Milbank, there are 4 affordable housing properties providing rental assistance to very low income households. In addition, Milbank Housing & Redevelopment Commission provides 64 Section 8 rental vouchers in Milbank and the surrounding area.
To qualify for most rental assistance programs a renter must earn no more than 50% of the Area Median Income (AMI). In some cases, rental assistance is reserved for renters earning 30% or less of the AMI. In Milbank, to qualify for Section 8 assistance, a renter household containing four persons must earn $30,350 or less. For some targeted rental assistance programs, a renter household of four can’t earn more than $23,850.
It’s important to remember that in many rental assistance programs there are minimum rent regulations requiring assistance recipients to make a minimum payment of between $25 and $50 per month no matter how low their income.
HUD Assistance Income Limits
All affordable housing programs provided by or through the government have maximum income limits to qualify for assistance. These income limits are typically derived from the Area Median Income (AMI), the theoretical family income of the average household in a given geography.
The AMI is updated each year for each geographical area taking into consideration numerous economic indicators. The geographical areas used for establishing the AMI are either Metropolitan Statistical Areas (MSA’s) or counties.
Milbank is in the Grant County, SD MSA. The 2014 Area Median Income for a family of four in Milbank is $60,700.
The income limits used for Section 8, public housing, Low Income Housing Tax Credits. the HOME program and other Federal programs all are derived from the HUD defined AMI.
Low Income Housing Tax Credit Income Limits
Rent Limits For Affordable Rental Housing
All apartment units that receive Federal assistance whether that assistance is used to subsidize rents or the cost of construction and development, have dollar limits on the amount of rent a landlord may charge each month. These rent limits are based on the incomes of the renters the property is meant to serve.
As we explained in the income limits section, the maximum income a renter can earn to qualify is based on the Area Median income for the market where the apartment community is located. Likewise, the maximum rent is usually determined by multiplying the annual income limit by 30% (the National housing affordability standard) and dividing by 12 months.
In Milbank, a family of four that qualifies for a three bedroom apartment under the Low Income Housing Tax Credit program will not pay more than $947. Rent limits can range greatly within the same apartment community. If the same apartment property in this example also targets persons earning less than 30% of AMI, our four person family’s 68 year old neighbor who earns less than $12,750 will never pay more than $342.
Low Income Housing Tax Credit Rent Limits
Fair Market Rents (FMR)
HUD establishes a Fair Market Rent each year for each Metropolitan Statistical Area in the country. This rent standard is used to establish payment limits for Section 8 Housing Choice Vouchers, maximum rents in HOME financed rental projects and initial or renewal rents for Section 8 project based assistance. HUD establishes FMR’s for 530 MSA’s and 2,045 counties nationwide each fiscal year.
The FMR is largely a statistical derivative of the US Census Bureau's American Community Survey (ACS) 5 year estimates for 2 bedroom median rent. For the most part, in Milbank, a landlord with a two bedroom apartment to rent, could not receive more than $627. Likewise, a renter in need of a 3 bedroom apartment with a Section 8 voucher would have to find a rental in Milbank that rented for less than $843.
2015 Fair Market Rents
Fair Market Rent Percentage Change Since 1988
The affordable housing industry has long used the FMR as barometer for local rents. Though the geographic areas FMR’s are based on are broad and there are often wide variations in neighborhood rents throughout an MSA, in general, the FMR is one of the best quick tools one can use to judge housing costs in a place.
We took a look at historic FMR’s in Milbank and found that they have risen an average of 2.50% year over year. The first year in our sample is 1985 when the two bedroom FMR was $332. That same 2 bedroom apartment rent had increased to $614 by 2013. In 2013 the two bedroom FMR in Milbank saw it’s largest single year increase going up by 13.08%.
It’s also interesting to look at the FMR compared to the Consumer Price Index’s housing index to understand how Milbank rents have fluctuated in comparison to the rest of the Nation. The consumer price index grew an average of -0.89% year over year. The two bedroom FMR in Milbank has grown faster than the CPI indicating faster than average rent growth in the market.
The largest single year of 2 bedroom FMR growth was in 2013 at 13.08% while the smallest year of growth was 1994 with a 5.01% decrease.