Location: Sauk County, WI | Metro: Sauk County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 53961 provides a clear picture of potential investment returns. Using the Federal Market Rent (FMR) figure of $1,060 for a two-bedroom apartment annually, we can calculate an implied gross yield. The annualized rental income at this rate would be $12,720. Dividing this by the median home value of $291,212 gives us an implied gross yield of approximately 4.37%. This calculation assumes that the property is rented out at the FMR rate throughout the year.
Alternatively, if we use the market rent figure of $1,181 per month, the annual rental income would be $14,172. Applying this to the median home value yields an implied gross yield of about 4.87%. This scenario reflects the higher rent levels that could potentially be achieved in the local market beyond the government-set rates.
Given the 19.3% renter density in ZIP 53961, it is important to consider how likely it is that a property will be continuously occupied by renters, particularly those participating in the Section 8 program. The N/A-day DOM (Days on Market) indicates either a very quick turnover or a lack of relevant data, which could suggest a robust demand for rental properties in the area. However, the lower renter density suggests that there might be fewer tenants seeking Section 8 housing, which could impact the likelihood of securing a long-term tenant at the FMR rate.
The gross yield of 4.87% derived from market rents is more realistic for investors considering the actual rental environment in ZIP 53961. While the Section 8 program offers stability and guaranteed payments, the higher yield from market rents represents a more competitive and potentially sustainable income stream, especially in light of the limited renter population density.
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.