Location: Shawano County, WI | Metro: Appleton, 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 | $780 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,540 | $332,505 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 54106 reveals an interesting contrast between government-subsidized rental income and market-driven rental income. Using the annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $910 per month (for FY 2024), the total annual income would be $10,920. Against the median home value of $348,231, this translates into an implied gross yield of approximately 3.14%. This calculation is based on the assumption that the property could be converted into a multi-unit structure where a 2-bedroom unit represents a fair portion of the total property value.
In comparison, using the Census ACS-reported market rent of $786 per month for a 2-bedroom apartment, the total annual income drops to $9,432. This scenario implies a gross yield of about 2.71%, which is significantly lower than the FMR-based yield. The difference highlights the financial benefits of participating in the Section 8 program over relying solely on market rents.
Given the 12.3% renter density in ZIP 54106, it's important to consider the likelihood of finding tenants who qualify for the Section 8 program. While the exact number of days on market (DOM) isn't available, the relatively low renter density suggests that landlords might face challenges in filling units with qualified Section 8 tenants. However, the higher gross yield from FMR-based rents makes it a more attractive option compared to market rents.
To conclude, the Section 8 scenario offers a higher gross yield at 3.14%, whereas the market rent scenario yields a lower 2.71%. Although the Section 8 program provides better returns, the success of this strategy depends on the landlord's ability to secure Section 8 tenants in a market with limited renter density. Therefore, while the higher yield from Section 8 is enticing, market conditions must also be considered carefully.
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.