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 | $860 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,150 |
| 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 |
|---|---|---|---|---|
| 1BR | $940 | $130,758 | 0.72% | D |
| 2BR | $1,150 | $244,790 | 0.47% | F |
| 3BR | $1,490 | $324,863 | 0.46% | F |
| 4BR | $1,620 | $403,774 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 real estate analysis for ZIP code 53965, located in Wisconsin Dells, WI, reveals a significant gap between the Fair Market Rent (FMR) and the market rent as measured by the Zillow Rent Index (ZORI). For fiscal year 2024, the FMR stands at $1010, while the ZORI indicates a market rent of $1,543. This results in a gap of $533 per month, or approximately 34.5% of the market rent.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors must understand the implications of accepting housing vouchers. The cost of housing voucher tenants below open-market rates means that landlords will receive $1010 instead of the potential $1,543 that the market could bear. This discrepancy represents a financial decision point for property owners.
In the context of Wisconsin Dells, where 26.1% of residents are renters and the median home value is $302,049, the median income of $66,667 suggests that many residents may struggle to afford market rents. Therefore, landlords who accept Section 8 vouchers can expect a steady stream of tenants who are financially supported by the government to meet their rent obligations.
However, the trade-off is clear: while the risk of vacancy is reduced due to the stability provided by the government-backed rental assistance program, the income generated per unit is also significantly less than what could be earned in the open market. This makes it essential for investors to carefully consider their investment strategy and whether they are willing to accept the lower rent in exchange for the security of guaranteed payments and stable occupancy.
To summarize, the gap between the FMR and market rent in ZIP 53965 is $533 per month, representing a 34.5% discount off the market rate. Landlords should weigh this against the benefits of having a reliable tenant base subsidized by the federal government.
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.