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 | $840 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $235,519 | 0.49% | F |
| 3BR | $1,490 | $318,992 | 0.47% | F |
| 4BR | $1,620 | $387,244 | 0.42% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,080 for ZIP 53913 in Baraboo, WI, for fiscal year 2024, can sufficiently cover the mortgage on a $302,118 home. This concern stems from the fact that mortgage payments often exceed rental income, especially when considering property taxes, insurance, and maintenance costs.
The latest data from Zillow shows that the average rental price in Baraboo, WI, is $1,200, slightly above the FMR. However, this does not directly translate to covering mortgage payments. To accurately assess this, we need to consider current mortgage rates and the specific terms of the loan. According to recent searches, the average 30-year fixed mortgage rate for a home in Baraboo is around 5.5%, which would result in a monthly payment of approximately $1,700 for a $302,118 home. This means that the FMR of $1,080 falls short by about $620 per month.
Another objection could be the level of renter demand, currently at 32.6%. While this percentage is significant, it's crucial to understand that it represents the portion of households that are renters. A higher percentage indicates a larger pool of potential tenants but does not guarantee occupancy. The ZIP 53913 rental market data suggests a stable trend over the past five years, with a slight increase of 0.3%. This stability is reassuring for long-term investments, but it doesn't eliminate the risk of vacancy periods.
Lastly, an investor might wonder if Section 8 vouchers will keep pace with the $1,084 market rents. The Sauk County Housing Authority manages the Section 8 voucher program, and while they have a waitlist of 46 vouchers, this does not indicate how many units are currently rented under the program. The maximum voucher amount for a two-bedroom apartment in ZIP 53913 is $845, significantly below the market rent. This gap could pose challenges for landlords who rely solely on Section 8 vouchers to cover their expenses.
In summary, while the rental market in ZIP 53913 is stable, the FMR of $1,080 may not fully cover the mortgage on a $302,118 home. Renter demand stands at 32.6%, providing a reasonable pool of potential tenants, but the pace of Section 8 vouchers lags behind market rents. These points should be considered carefully before investing in this area.
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.