Location: Richland County, WI | Metro: Richland County, WI
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 | $710 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $192,758 | 0.52% | F |
| 3BR | $1,290 | $256,567 | 0.5% | F |
| 4BR | $1,500 | $313,162 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 53581, located in Richland County, Wisconsin, are defined by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP. For a two-bedroom apartment in FY 2026, the SAFMR is $970. This is the maximum amount that the Housing Choice Voucher program will pay towards the rent. However, it's important to understand that this figure is not the total payment you'll receive.
The local market rent for a two-bedroom unit, according to the Census ACS, is $724. This lower figure represents the average rent charged for similar units in the area. If your rental property is priced at or below this market rate, you might consider adjusting your rent to align with the market to ensure full occupancy and avoid overpricing.
A Section 8 voucher works by covering the difference between what the tenant can afford and the actual rent. Typically, tenants are required to contribute 30% of their adjusted income toward rent. For example, if a tenant has an adjusted income of $1,500 per month, they would pay $450 ($1,500 x 0.30).
The voucher then covers the remainder up to the SAFMR limit. In this case, the voucher would cover the difference between the tenant’s contribution and the SAFMR. So, if the rent is set at $970, and the tenant contributes $450, the voucher would cover $520. But if the rent is set at $724, the voucher would cover $274 ($724 - $450).
In addition to the base rent, there are utility allowances. These vary but are generally around $300-$400 for a two-bedroom apartment. This allowance is separate from the rent and directly benefits the tenant. Therefore, the total reimbursement for a landlord includes the rent covered by the voucher plus any applicable utility allowances.
Given these specifics, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 53581 is a surplus when the rent is set at the local market rate. Landlords who charge $724 would receive the full market rate plus the utility allowance, ensuring they are not left with a shortfall. However, if they charge the higher SAFMR rate of $970, they would face a reimbursement gap, as the voucher only covers up to $970 minus the tenant’s contribution, which leaves them with less than the full SAFMR rate.
To summarize, landlords in ZIP 53581 should aim to set their rent close to the local market rate of $724 to avoid leaving a significant gap unmet by the voucher system. Doing so ensures a steady stream of income and avoids financial loss due to the discrepancy between the SAFMR and the actual market conditions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.