Location: Sauk County, WI | Metro: Columbia 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 | $1,040 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,810 | $417,934 | 0.43% | F |
U.S. Census Bureau data (2024)
To classify ZIP code 53578, we need to consider both the yield potential and the stability of the rental market. The Federal Market Rent (FMR) for ZIP 53578 in fiscal year 2024 is set at $1,230. This is below the market rent of $1,357, indicating that properties in this area can potentially command higher rents than the FMR suggests, thus offering a decent yield.
The median home value in ZIP 53578 is $414,724. Given the market rent of $1,357, the gross rent multiplier (GRM), which is the ratio of the price of the property to its annual rental income, is approximately 304. This GRM is relatively high, suggesting that the cost of acquiring properties in this area might be somewhat inflated compared to the rental income they generate. However, it's important to note that the FMR is lower, at $1,230, which could make properties more attractive to Section 8 participants, thereby ensuring a stable occupancy rate.
The stability of the market can be gauged by several factors, including the percentage of renters and the median household income. In ZIP 53578, 24.4% of households are renters. While this figure is not exceptionally high, it does indicate a reasonable demand for rental properties. Unfortunately, the average days on market (DOM) for rentals is not available, which would have been useful in assessing how quickly properties can be leased. The median household income is $105,610, which is relatively strong and supports the possibility of tenants maintaining consistent rental payments.
Based on these figures, ZIP 53578 leans towards being a steady-cashflow zone. The slightly higher market rent over the FMR suggests some yield potential, but the high GRM indicates that the cost of entry is significant. The strong median income supports stability, but the moderate rental rate implies that while there is demand, it isn't so high as to suggest a volatile, flip-style market. Landlords and small-portfolio investors should expect a reliable, albeit not extraordinarily high, cash flow from properties in this ZIP code.
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.