Location: Columbia County, WI | Metro: Madison, WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
U.S. Census Bureau data (2024)
The rent math in ZIP 53911, part of the Columbia County, WI HUD Metro FMR Area, does not favor Section 8 participation. The Family Monthly Income Fair Market Rent (FMR) for the area is set at $1370 for fiscal year 2024. However, the Census ACS reports a market rent of $1,286, indicating that landlords accepting Section 8 may face a shortfall of $84 per month if they rely solely on rental income.
Acquisition in ZIP 53911 is relatively affordable for potential investors. With a median home value of $370,693, the cost of entry into the real estate market is moderate compared to other areas. Unfortunately, the data lacks specifics on Days on Market (DOM) and the percentage of homes sold with price cuts, which would provide further insight into the local housing market dynamics.
Tenant demand is present but limited. The ZIP code has a total population of 1,450, with 14.7% of residents being renters. This translates to approximately 213 potential tenants who might seek Section 8 housing assistance. Given the small population size, competition for these tenants could be fierce among landlords participating in the program.
Verdict: While acquisition costs are reasonable, the mismatch between the HUD FMR and the actual market rent makes participation in the Section 8 program less attractive financially. Additionally, the limited number of potential tenants suggests that landlords may struggle to fill vacancies, especially if they are not willing to accept lower rents than the HUD FMR. For small-portfolio investors, focusing on higher-rent properties outside the Section 8 program might yield better returns.
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.