Location: Lafayette County, WI | Metro: Iowa County, 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 | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $317,004 | 0.44% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 53565 is based on the disparity between the Fair Market Rent (FMR) set at $980 for fiscal year 2024 and the actual market rent reported at $879 according to the Census American Community Survey (ACS). This creates a gap of $101, or approximately 11.5%, which is significant for landlords and small-portfolio investors.
In this scenario, where the FMR exceeds the market rent, the primary advantage is that voucher tenants can be leveraged to increase rental yields. By accepting Section 8 vouchers, landlords can charge the higher FMR rate without significantly impacting occupancy. Given that only 21.8% of residents are renters, competition for rental properties is relatively low, making it easier to attract voucher holders who will pay the FMR rate.
The median home value in ZIP 53565 stands at $318,910, indicating a moderate level of wealth within the area. However, the median income of $84,589 suggests that many households may struggle to afford homeownership, further supporting the demand for affordable rentals. The Section 8 program, therefore, serves as a reliable source of tenants who can afford to pay the higher FMR rate, providing a consistent cash flow and potentially higher returns on investment.
For landlords, the decision to accept Section 8 vouchers means foregoing the opportunity to rent to the open market at lower rates but securing a stable income stream at the FMR rate. This is particularly beneficial given the slight premium over the current market rent, enhancing profitability. For small-portfolio investors, this can mean a better return on their investments, especially if they manage to fill their units with voucher tenants efficiently.
It's important to note that while the FMR provides a higher rental rate, landlords must also adhere to the standards and regulations set by the Section 8 program, which can include regular inspections and maintenance. Despite these requirements, the financial benefits of renting to voucher tenants at the FMR rate outweigh the costs, making ZIP 53565 an attractive location for those looking to capitalize on the yield potential offered by the Section 8 program.
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.