Location: Fond du Lac, WI | Metro: Fond du Lac, WI MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,630 | $340,384 | 0.48% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,010 for ZIP 53019 in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $359,187. To address this concern, let's consider the average monthly mortgage payment for a home in this price range. Assuming a 30-year fixed-rate mortgage at an interest rate of around 5%, the monthly payment would be approximately $1,900. This means that the FMR alone does not cover the mortgage. However, it's important to note that FMR is just one factor; property taxes, insurance, and maintenance costs also play a role in determining the overall financial feasibility.
The second objection could be the relatively low percentage of renters in ZIP 53019, which stands at 17.1%. While this figure may seem concerning, it's worth noting that the rental market still exists. The key here is understanding the local housing dynamics. A lower renter percentage can indicate a strong owner-occupied market, but it doesn't necessarily mean that there isn't sufficient demand for rentals. In fact, even with a smaller share of the market, the rental demand can still be substantial if the total population is large enough. Moreover, the rental market can fluctuate based on various factors such as job availability, student populations, and economic conditions, which may not be fully captured by the 17.1% statistic.
Lastly, an investor might wonder if Section 8 vouchers will keep up with the market rent, currently estimated at $1,034. The FMR of $1,010 suggests that while there might be some pressure, it's not drastically below market rates. However, the ability of voucher programs to adjust to market conditions depends on federal funding and policy changes. If funding remains stable, it's reasonable to expect that voucher amounts will continue to reflect the FMR, thereby keeping pace with the market. But investors should be aware that external factors, including changes in federal budget allocations, could affect the value of these vouchers.
In summary, while the FMR does not fully cover the mortgage on a $359,187 home, the rental market in ZIP 53019 is still viable. The 17.1% renter rate indicates a smaller market segment, but it doesn't negate the potential for demand. And although the FMR is slightly below the market rent of $1,034, voucher programs generally aim to align with FMRs, suggesting they will likely keep pace with market conditions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.