Location: Grant County, WI | Metro: Grant County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 53812 might have several concerns regarding the feasibility of investing in the area through the Section 8 program. Let's address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $970 (for metro FY 2026) cover the mortgage on a home?
The Fair Market Rent (FMR) for ZIP 53812 is set at $970 for the fiscal year 2026. However, without specific information on average home prices and prevailing mortgage rates in the area, it's challenging to definitively state whether this FMR will cover the mortgage payments on a typical home. The data does not provide details on the median home value or the average mortgage rate in ZIP 53812, which are crucial for calculating potential mortgage costs. To make an informed decision, investors should research local real estate prices and mortgage rates to determine if the FMR can sufficiently cover the monthly mortgage payment.
Objection 2: Is there enough renter demand at 25.0%?
The percentage of renters in ZIP 53812 is 25.0%. This figure indicates that a quarter of the households in the area are renting. While this might seem low compared to some urban areas with higher rental percentages, it still represents a significant portion of the housing market. The data does not specify the total number of households or the exact number of renters in the area, making it difficult to assess the absolute level of demand. Nonetheless, a 25.0% rental rate suggests a stable demand for rental properties, especially if the investor targets the right demographic. Given that the FMR is established to reflect the average rent paid by tenants in the area, it implies that there is sufficient demand to support this level of rent.
Objection 3: Will vouchers keep pace with market rents?
The availability of vouchers and their ability to keep up with market rents is a critical concern for Section 8 investors. Unfortunately, the provided data does not include specific information on the voucher program in ZIP 53812 or how it adjusts to changes in market conditions. Typically, the Housing Choice Voucher program aims to cover a substantial portion of the FMR, but the actual amount can vary based on factors such as funding levels and local housing authority policies. Investors must monitor the local housing authority's practices and any federal adjustments to the voucher amounts to ensure they remain competitive with market rents. In the absence of detailed voucher data, investors should prepare for potential fluctuations and consider diversifying their investment portfolio to mitigate risk.
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.