Location: Juneau County, WI | Metro: Juneau 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 | $760 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $230,585 | 0.44% | F |
| 3BR | $1,240 | $310,267 | 0.4% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 53950 in Wisconsin might have several concerns regarding the feasibility of investing in a Section 8 property. Let's address these concerns one by one.
Will FMR $970 (metro FY 2026) cover the mortgage on a $296,513 home?
The Fair Market Rent (FMR) for ZIP 53950 is projected to be $970 per month in fiscal year 2026. To determine if this amount can cover the mortgage on a home valued at $296,513, we must consider typical mortgage rates and terms. Assuming an average interest rate of 4% and a 30-year fixed mortgage term, the monthly payment on such a home would be approximately $1,445. This means that the FMR of $970 would not fully cover the mortgage payment, leaving a shortfall of $475 per month. However, it's important to note that this calculation does not include potential tax benefits and other financial incentives that come with owning rental properties.
Is there enough renter demand at 22.2%?
The percentage of renters in ZIP 53950 is 22.2%, which is lower than the national average. This could suggest that there is less overall demand for rental properties compared to areas with higher percentages of renters. However, the demand for Section 8 housing is often driven by specific factors such as availability of vouchers and local economic conditions, rather than the general rental market. The data does not provide specifics on the number of voucher holders or the vacancy rates for subsidized housing, which would give a clearer picture of the demand for Section 8 units specifically.
Will vouchers keep pace with $822 market rents?
The current market rent in ZIP 53950 is $822 per month. While the FMR is expected to rise to $970 by FY 2026, the actual pace at which voucher amounts increase can vary based on federal funding levels and local adjustments. As of now, the voucher amount typically aligns closely with the FMR, but future increases are not guaranteed. If the FMR does indeed reach $970, this would be sufficient to cover the current market rent, but investors should remain vigilant to any changes in federal policy that could affect voucher growth.
In conclusion, while the data shows that the FMR may not currently cover the full cost of a mortgage on a $296,513 home, it also indicates that the projected FMR will be closer to covering market rents. The lower percentage of renters suggests a potentially smaller pool of tenants, but the specific demand for Section 8 housing remains unclear without additional data on voucher usage and local economic trends.
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.