Location: Richland County, WI | Metro: Richland County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 53540 focuses on the significant gap between the Fair Market Rent (FMR) and the actual market rents. For fiscal year 2026, the FMR stands at $1,290. However, the market rent data is currently unavailable, which suggests that the FMR is likely above the open-market rental rates in this area.
Given that the FMR exceeds the market rent, landlords can benefit from accepting Section 8 tenants. This scenario transforms the investment into a yield play. The guaranteed income from the Housing Choice Voucher program ensures a steady cash flow, even if it's slightly higher than what might be achieved in the open market. In ZIP 53540, where 42.6% of residents are renters, the demand for affordable housing is strong, making Section 8 properties a reliable choice for landlords looking to capitalize on a niche market.
The median income in ZIP 53540 is $61,458, indicating that many residents could struggle to afford market-rate rents. Accepting Section 8 vouchers allows landlords to participate in the affordable housing market while still receiving a fixed, government-backed rent payment. Although the exact percentage gap cannot be calculated without the market rent figure, the disparity between the FMR and the likely lower market rents means that landlords will receive a higher-than-average rental income, which can improve their overall property yields.
While there may be some additional administrative costs associated with managing Section 8 properties, these are typically outweighed by the benefits of stable occupancy and consistent rent payments. Landlords should consider the local rental market dynamics and the high percentage of renters when deciding whether to accept Section 8 vouchers in ZIP 53540.
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.