Location: Dodge County, WI | Metro: Dodge County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 53078 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, set at $1,170 for metro fiscal year 2026, is higher than the reported market rent of $1,092 based on Census ACS data. This means that the FMR is $78 above the market rent, representing a 7.1% premium.
This gap makes the ZIP code an attractive location for landlords and small-portfolio investors looking to maximize yields. Voucher tenants, who receive subsidies to cover part of their rent, can pay up to the FMR level. Consequently, landlords can charge closer to the FMR rate without losing tenants, thereby achieving higher rental incomes compared to the open-market rates.
In the broader context of ZIP 53078, only 8.9% of residents are renters, indicating a primarily owner-occupied housing market. Despite this, the median income of $94,688 suggests that those who do rent might struggle to afford market rates, making subsidized housing through Section 8 vouchers particularly valuable. The lack of a reported median home value could indicate a variety of factors, including a mix of property types or recent changes in the housing stock.
The 7.1% premium on FMR over market rent implies that landlords can benefit from the federal subsidy program while still offering affordable housing options. For investors, this scenario presents an opportunity to achieve higher returns on investment in a region where rental demand is relatively low but where the financial support from the government can fill this gap effectively. However, it's important to note that maintaining properties to meet Section 8 standards can incur additional costs, which must be weighed against the potential benefits of higher rental income.
To summarize, the Section 8 program in ZIP 53078 offers a unique yield play for landlords and investors due to the $78 premium on FMR over market rent. This situation allows for charging closer to the FMR rate without the risk of tenant loss, thus enhancing profitability in a low-renter market environment.
Data Sources: FMR data from HUD (2027). 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.