What Income-Based Housing Options Exist in South Dakota

South Dakota has three main paths to income-based housing: Section 8 Housing Choice Vouchers run by local public housing authorities, public housing owned and operated by those same authorities, and Low-Income Housing Tax Credit (LIHTC) properties managed by private landlords but subsidized through federal tax incentives. Section 8 is the largest program statewide. Public housing exists in most counties but has long waitlists. LIHTC properties are scattered across the state and do not use a centralized process — you contact the property directly.

South Dakota does not run its own state housing subsidy program. All three options are federal programs administered locally. The income limits, rent calculations, and documentation rules are set by the U.S. Department of Housing and Urban Development (HUD), though each local housing authority sets its own waitlist policies and process timelines.

Key Takeaways

  • Section 8 vouchers are available through your county or city housing authority, and most South Dakota authorities have open waitlists, though some close periodically when demand is high.
  • Income limits for a family of four in South Dakota range from roughly $32,000 to $38,000 annually depending on your county, and you must earn less than 50% of the area median income to be considered.
  • You will need proof of income (pay stubs, tax returns, or benefit statements), a Social Security number for each household member, and documentation of citizenship or may be able to access immigration status.
  • Public housing and Section 8 both require a background check covering criminal history and prior evictions, and some disqualifying offenses will permanently bar you from the program.
  • LIHTC properties do not advertise centrally — you must search for them by county and contact each property's management office to learn about income limits and current openings.

Section 8 Housing Choice Vouchers in South Dakota

A Section 8 voucher is a monthly subsidy that goes directly to your landlord, covering the difference between what you pay and what the unit is worth. You choose your own rental unit (within program rules), and the voucher follows you if you move. In South Dakota, the voucher amount varies by county — a two-bedroom in Minnehaha County (Sioux Falls) is worth more than a two-bedroom in a rural county. You pay 30% of your gross household income toward rent; the voucher covers the rest, up to the program's limit for that unit size and location.

To get on a Section 8 waitlist, contact your local housing authority directly. South Dakota has housing authorities in Sioux Falls, Rapid City, Aberdeen, Watertown, and several smaller cities, plus a statewide authority that serves rural areas. Most are currently accepting new applications, but waitlists are long — typically two to five years in larger cities. Some authorities close their waitlists temporarily when demand spikes. Call or visit the authority's office to ask whether they are accepting applications right now, because this changes.

Once you receive a voucher, you have a limited time (usually 60 to 120 days) to find a landlord willing to accept it. Not all landlords participate. You will need to show the landlord a lease, and the unit must pass a housing quality inspection before the subsidy begins. The inspection checks for basic safety and livability — working plumbing, heat, no lead paint hazards, and so on.

Income Limits and Rent Calculations for Section 8

Section 8 income limits in South Dakota are set at 50% of the area median income (AMI) for your county. For a family of four, this ranges from approximately $32,000 to $38,000 per year, depending on whether you live in a metropolitan area like Sioux Falls or a rural county. Sioux Falls and Rapid City have higher limits because the cost of living is higher. Your housing authority will tell you the exact limit for your household size when you explore.

Income is counted as gross monthly earnings before taxes. This includes wages, self-employment income, Social Security, disability benefits, unemployment, child support, and alimony. Some income is excluded — for example, the first $480 per year of child support received, and certain education grants. If your income is below the limit, you move to the next step. If it is at or above the limit, you are not considered at that time.

Once you have a voucher, your rent payment is recalculated every year based on your current income. If your income goes up, your share of the rent goes up (but the voucher amount stays the same). If your income drops, your share drops. You report income changes to your housing authority, and they adjust your payment accordingly.

Public Housing in South Dakota

Public housing is owned by the local housing authority and rented to low-income households. It is different from Section 8 because the authority owns the building, not a private landlord. Public housing units in South Dakota are found in most counties, though the number of units is small compared to Section 8. Sioux Falls, Rapid City, and Aberdeen have the largest public housing inventories.

The income limits for public housing are the same as Section 8 (50% of AMI for your county). Rent is also calculated the same way — 30% of your gross income. The main difference is that you are renting directly from the authority, and the authority maintains the unit. Waitlists for public housing are often longer than Section 8 because there are fewer units available.

To explore for public housing, contact your local housing authority. They will give you an process form and tell you the current waitlist status. Some authorities have closed their public housing waitlists because demand is too high. If the waitlist is open, you explore the same way as for Section 8 — with proof of income, household composition, and citizenship or may be able to access immigration status.

Documentation You Will Need

When you explore for Section 8 or public housing, bring originals or certified copies of the following documents. The housing authority will tell you which ones they need before you explore.

  • Proof of income: Recent pay stubs (last 30 days), tax returns (last two years), or benefit statements (Social Security, disability, unemployment). If you are self-employed, bring tax returns and a profit-and-loss statement.
  • Proof of identity: A government-issued ID for each household member — driver's license, passport, or state ID card.
  • Proof of Social Security number: Social Security card, tax return, or W-2 for each household member.
  • Proof of citizenship or may be able to access immigration status: Birth certificate, passport, naturalization papers, or a valid visa or work permit. Non-citizens must have may be able to access immigration status to participate.
  • Proof of residency: A utility bill, lease, or mail from a government agency showing your current address.
  • Proof of household composition: Birth certificates for children, custody papers if applicable, and marriage certificate if you are married.

If you do not have all these documents, ask the housing authority what alternatives they will accept. Many will work with you if you are missing something — for example, if you do not have a birth certificate, they may accept a hospital record or school enrollment form.

Background Checks and Disqualifying Factors

Both Section 8 and public housing require a background check. The housing authority will check your criminal history, eviction history, and prior participation in the programs. Certain convictions and behaviors will disqualify you permanently or temporarily.

Permanent disqualifiers include: conviction for manufacturing methamphetamine on the property, or conviction for any felony involving drugs within the past three years (this timeline varies by authority). Temporary disqualifiers include: eviction within the past three years (some authorities will consider you after two years), or a pattern of late rent payments. Some authorities will consider you if you can show you have addressed the problem — for example, if you were evicted five years ago and have paid rent on time since.

A criminal conviction does not automatically disqualify you. The housing authority must consider the nature of the offense, when it occurred, and what you have done since. You have the right to explain your situation. If you are denied, you have the right to a hearing where you can present your side.

Low-Income Housing Tax Credit Properties in South Dakota

LIHTC properties are private apartment buildings and houses that receive a federal tax credit in exchange for renting to low-income households. They are scattered throughout South Dakota but do not advertise through a single system. To find them, you must search by county or city.

The South Dakota Housing Development Authority maintains a list of LIHTC properties on its website. You can search by county and see the property name, address, and contact information. Income limits at LIHTC properties are usually 50% to 60% of AMI, similar to Section 8, but each property sets its own limit. Rent is not subsidized the way Section 8 is — you pay the full rent, but the rent is capped at an affordable level because of the tax credit.

To rent at an LIHTC property, call the property management office directly. They will tell you the current income limit, the rent amount, and whether units are available. You will need to provide the same documentation as for Section 8 — proof of income, identity, and citizenship or may be able to access immigration status. There is no waitlist; if you meet the income limit and pass the background check, you can move in as soon as a unit is available.

How to Find Your Local Housing Authority

South Dakota has five main housing authorities that serve the state. Sioux Falls Housing Authority serves Minnehaha County and surrounding areas. Rapid City Housing Authority serves Pennington County and the Black Hills region. Aberdeen Housing Authority serves the northeast. Watertown Housing Authority serves the east-central region. The South Dakota Housing Development Authority serves rural areas not covered by the others.

You can find contact information for each authority on the South Dakota Housing Development Authority website, or by calling 211 (a free referral service). Tell them your county, and they will give you the phone number and address of your local authority. Most authorities accept applications by phone or in person. Some have moved to online applications — ask when you call.

Frequently Asked Questions

How long does it take to get a Section 8 voucher in South Dakota?

Waitlist times vary by county. In Sioux Falls and Rapid City, expect two to five years. In smaller cities and rural areas, it may be shorter — sometimes six months to two years. Some authorities have closed their waitlists temporarily. Call your local authority to ask where you stand and whether they are currently accepting new applications.

Can I use a Section 8 voucher to rent from a family member?

No. The landlord cannot be a spouse, parent, child, or sibling. The unit also cannot be in a building where you own any interest. These rules prevent fraud and may support the subsidy goes to an independent landlord.

What happens if my income goes above the limit after I get a voucher?

You do not lose your voucher when ready. Most authorities allow you to stay in the program for a grace period (usually one year) while your income is above the limit. After that, you must leave the program. Your rent payment will increase as your income rises, but eventually it will reach the point where you are paying the full market rent.

Do I have to pay an process fee?

No. Section 8 and public housing applications are free. If someone asks you for money to explore, it is a scam. LIHTC properties may charge an process fee (usually $25 to $50) to cover the cost of the background check, which is legal.

What if I have a criminal record but it was a long time ago?

The housing authority will consider the nature of the crime, when it happened, and what you have done since. A conviction from 15 years ago is viewed differently than one from last year. You have the right to explain your situation in writing or at a hearing. Some authorities have policies that allow consideration after a certain amount of time has passed.