Location: Dodge County, WI | Metro: Fond du Lac, WI MSA
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 | $730 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $217,044 | 0.49% | F |
| 3BR | $1,370 | $258,120 | 0.53% | F |
| 4BR | $1,500 | $300,991 | 0.5% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 53963, Waupun, WI, stands at $77,631. This figure places significant constraints on the ability of households to afford the market rate rent of $950 per month. The disparity between income and rent suggests that many residents may struggle to pay the current market rates without financial assistance.
To put this into perspective, let’s consider the Federal Market Rent (FMR) standard for ZIP 53963, which is set at $910 for fiscal year 2024. This standard closely mirrors the market rate, indicating that even with a voucher, the cost remains high relative to the median income. For a household earning the median income, the monthly rent would consume approximately 12.3% of their gross income before any deductions. However, the FMR of $910 is only slightly lower, meaning the affordability gap is minimal when comparing cash pay to voucher payments.
Given that 28.4% of the 13,952 population are renters, the competition among landlords is likely to be moderate but not overwhelming. However, the tight alignment between market rate and FMR, combined with the relatively low median income, means that landlords must be strategic in their approach to attract tenants. Offering units at or below the FMR could help secure tenants who qualify for vouchers, reducing vacancy rates and ensuring steady rental income.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: while the income-to-rent ratio indicates a challenge for cash-paying tenants, accepting vouchers can provide a stable tenant base. Vouchers ensure a consistent and reliable source of income, mitigating the risk of non-payment and helping to fill units that might otherwise remain vacant due to the high cost of living relative to income. Landlords should weigh the benefits of voucher stability against the potential for higher rents from cash-paying tenants, keeping in mind the local economic conditions and tenant needs.
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.