Location: Iowa County, WI | Metro: Madison, WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
U.S. Census Bureau data (2024)
The ZIP code 53544, located within the HUD Metro FMR Area in Iowa County, Wisconsin, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) and the local market rent. For fiscal year 2024, the FMR for ZIP 53544 is set at $1250, whereas the current market rent stands at $850. This discrepancy means that properties within this ZIP code can be leased through the Section 8 program at rates above what the private market would bear, thereby ensuring positive cash flow for landlords and small-portfolio investors.
The median home value in ZIP 53544 is $408,102, indicating a relatively high-value area. However, the focus here is on rental properties, which are crucial for generating steady income. The Section 8 program guarantees a reliable source of tenants who are vetted and whose rents are subsidized, reducing the risk of vacancy and delinquency. Given the high FMR compared to the market rent, landlords can expect to see a consistent positive cash flow, making ZIP 53544 a solid choice for anchoring a portfolio's financial stability.
ZIP 53544 does not present itself as an appreciation play due to the lack of specific data regarding price-cut shares and days on market (DOM). Similarly, while the renter share is 18.5%, and the median income is $100,625, these factors alone do not make it a primary candidate for diversification. Diversification typically involves spreading investments across various types of assets or geographic locations to mitigate risk. In this case, the primary benefit lies in the cash-flow stability provided by the Section 8 program, rather than the potential for property value appreciation or diversifying income sources.
In summary, ZIP 53544 is best suited as a cash-flow anchor within a Section 8 portfolio strategy, thanks to the favorable spread between the FMR and market rent, ensuring steady and predictable income for investors.
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.