Location: Polk County, WI | Metro: Minneapolis-St. Paul-Bloomington, MN-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 | $1,120 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $282,940 | 0.54% | F |
| 3BR | $2,040 | $368,819 | 0.55% | F |
| 4BR | $2,280 | $439,846 | 0.52% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 54025, Somerset, WI, Saint Croix County, are straightforward when you break them down. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1290. This figure is specifically tailored for this ZIP code, reflecting the unique housing costs in the area.
However, the local market rent for a similar two-bedroom unit is reported to be $1194 according to the Census ACS data. This means that the SAFMR is slightly higher than the average market rent, which can be advantageous for landlords participating in the program.
A landlord should understand that a Section 8 voucher does not cover the entire rent amount directly. Instead, it reimburses the landlord for the difference between the tenant's portion of the rent and the actual rent charged, up to the SAFMR limit. Here’s how it works:
The tenant is responsible for paying approximately 30% to 40% of their income towards rent. If we assume an average income level where the tenant pays 35%, then for a $1290 SAFMR, the tenant would pay around $451.50. This leaves the landlord with the remaining portion to be covered by the voucher, which in this case would be $838.50.
In addition to covering part of the rent, the voucher also includes utility allowances. These allowances vary but typically add a few hundred dollars to the reimbursement. For instance, if the utility allowance is $200, the total reimbursement to the landlord would be $1038.50.
This reimbursement structure means that landlords in ZIP 54025 can expect to receive a consistent payment close to the SAFMR. However, since the local market rent is lower at $1194, landlords who charge the market rate would have a surplus of $84.50 per month on top of the reimbursement. Conversely, landlords who charge more than the SAFMR might face a gap between their rent demands and the voucher reimbursement, which could deter tenants.
To summarize, landlords in ZIP 54025 should set their rents strategically, ideally close to or slightly below the SAFMR of $1290, to maximize their financial benefits while still attracting tenants. With a market rent of $1194, landlords can expect a surplus of $84.50 per month, making Section 8 participation financially viable and beneficial.
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.