Location: Richland County, WI | Metro: Crawford County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 53518 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area is set at $970 for fiscal year 2026, while the Census American Community Survey (ACS) indicates that the market rent is $900. This means there is a $70 difference, or approximately 7.2% of the FMR, favoring the voucher program.
The gap where FMR exceeds market rent makes ZIP 53518 a compelling opportunity for landlords and small-portfolio investors looking to maximize yields. With only 8.7% of residents being renters and a median home value of $246,702, the rental market is relatively small compared to the homeownership market. However, the high median income of $62,384 suggests that residents can afford higher rents, but the current market rate does not fully capitalize on this economic capacity.
Voucher tenants provide a guaranteed income stream, as their rent is subsidized up to the FMR level. In this case, landlords could potentially charge $970 per month for a rental unit, which is above the current market rate. This scenario allows landlords to achieve a higher rental yield without significantly increasing the cost burden on tenants, as the government covers the difference between what they pay and the FMR.
The cost of housing voucher tenants below open-market rates is minimal given the structure of the Section 8 program. Landlords receive the full FMR amount, ensuring that they are not financially disadvantaged by accepting voucher holders. Instead, they benefit from stable tenancy and predictable income, which can be advantageous in a market with limited rental demand.
In summary, the FMR exceeding the market rent in ZIP 53518 presents a strategic opportunity for landlords and investors to enhance their rental yields. The economic context supports this strategy, making it a viable option for those interested in the Section 8 program in this area.
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.