Location: Richland County, WI | Metro: Crawford 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 | $780 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $221,720 | 0.56% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 53805 for Section 8 investment must follow a structured decision-making process based on financial feasibility and market demand.
Step 1: Evaluate if the Fair Market Rent (FMR) of $970 can cover the debt service on a property valued at $195,817. The FMR is the maximum amount that HUD will pay for rental housing in a given area. To determine if this FMR clears debt service, calculate the monthly mortgage payment plus any other monthly costs associated with owning the property. If these costs exceed $970, then the answer is No; the FMR does not sufficiently cover the expenses, making it financially unfeasible. If the costs are below $970, proceed to the next step.
Step 2: Compare the market rent of $701 (as per Census ACS) to the FMR. In ZIP 53805, the market rent is below the FMR. This indicates that landlords can potentially benefit from higher rents paid by the government compared to what private tenants might pay. However, if the market rent were above or equal to the FMR, landlords would face competition from private renters and the potential need to lower their asking price, leading to a No or It Depends conclusion.
Step 3: Assess the demand for rental properties. With 33.6% of residents being renters and the days on market (DOM) data not available, the primary indicator of demand is the percentage of renters. This suggests a moderate demand for rental properties. Without DOM data, it's challenging to gauge how quickly properties are rented out, which is crucial for cash flow. Therefore, the answer here is It Depends. Landlords should investigate further into the local real estate market trends and availability of Section 8 vouchers.
If the landlord concludes that the FMR of $970 does cover the debt service and there is sufficient demand, they should consider purchasing in ZIP 53805. The lower market rent compared to the FMR also provides an additional incentive. However, if either condition is not met, the investment in this ZIP code would be less favorable.
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.