Location: Columbia County, WI | Metro: Madison, WI HUD Metro FMR Area
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 | $1,150 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $350,683 | 0.44% | F |
| 3BR | $2,090 | $441,570 | 0.47% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 53555 (Lodi, WI) on the axes of yield and stability reveals a unique investment opportunity that lies between high-yield/low-stability and steady-cashflow zones. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1250, which is below the market rent of $1,352 but significantly higher than the average home value of $471,315 when considering rental yields.
On the yield axis, the potential for higher returns is evident. A landlord could aim for the FMR of $1250 per month to maximize government subsidies under the Section 8 program. However, if the goal is to achieve a slightly higher cash flow, the market rent of $1,352 per month presents an alternative. This means that a property valued at $471,315 could generate a monthly rental income of approximately $1250 to $1352, depending on the strategy chosen.
Moving to the stability axis, Lodi shows mixed indicators. With only 13.2% of residents being renters, the demand for rental properties is relatively low. This suggests that finding tenants might be challenging, and there could be periods of vacancy. Additionally, the median household income is $119,305, which is quite high, indicating that many residents can afford homeownership over renting. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are rented out once they become available.
In conclusion, ZIP 53555 is best classified as a steady-cashflow zone with moderate yield potential. While the rental income is attractive relative to the home value, the low percentage of renters and high median income suggest a less stable market compared to areas with a higher proportion of renters. Landlords and small-portfolio investors should consider these factors carefully and be prepared for potential challenges in tenant acquisition and retention.
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.