Location: Grant County, WI | Metro: Iowa County, WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $830 |
| 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 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 53569 are structured around the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment in ZIP 53569, the SAFMR for FY 2024 is $970. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this area.
The local market rent for a two-bedroom apartment in ZIP 53569, according to Census ACS data, is $922. Landlords might wonder how these numbers translate into actual payments. Here’s a breakdown:
The voucher program covers the difference between the tenant's portion and the total rent. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in ZIP 53569, the tenant's contribution would be calculated based on that percentage. However, the exact amount varies per tenant.
In addition to the rent subsidy, the voucher also includes an allowance for utilities. The utility allowance is designed to cover the cost of electricity, gas, water, and sewer. The amount allocated for utilities can vary but is generally fixed by the local housing authority.
To illustrate, if a landlord charges $970 for a two-bedroom unit, the voucher program will pay up to $970 minus the tenant's portion. For example, if a tenant's adjusted income is $1,000, they would pay $300 (30% of $1,000), leaving the voucher program to cover the remaining $670. If the landlord charges less than $970, say $922, the voucher program would still cover the difference between the tenant's contribution and the rent charged, ensuring the landlord receives the full $922.
The reimbursement gap or surplus occurs when comparing the local market rent to the SAFMR. In ZIP 53569, the SAFMR is higher than the local market rent. Therefore, landlords who charge the local market rent of $922 will receive the full amount from the voucher program plus any applicable utility allowances. This results in a surplus for landlords who charge below the SAFMR, as they are effectively receiving more than the average market rent.
In summary, landlords in ZIP 53569 can expect the voucher program to cover up to $970 for a two-bedroom apartment, with the tenant paying their portion based on their income. Given the local market rent of $922, landlords who participate in Section 8 and charge at or below this rate will find themselves in a favorable position, with the potential for a surplus of up to $48 per month over the local market rent.
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.