Location: Florence County, WI | Metro: Florence County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 54121 in Florence County, Wisconsin reveals several key insights for potential real estate investments, particularly focusing on Section 8 eligibility.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the area, set at $1,120 for fiscal year 2026, is significantly higher than the actual market rent of $731 as reported by the Census Bureau's American Community Survey (ACS). This gap suggests that properties could potentially be rented out at rates above the market average if they qualify for Section 8 subsidies, making it financially viable for landlords to participate in the program.
Regarding the affordability of acquisition, the median home value in ZIP 54121 is $218,116. However, the lack of data on days on market (DOM) and the percentage of homes that required price cuts indicates that the local real estate market may not have comprehensive recent transaction records available. This absence of detailed market activity metrics can make it challenging to assess the current competitiveness of property acquisitions.
To evaluate tenant demand, consider the population size of 3,257 and the relatively low renter share of 9.0%. This implies that only about 293 residents are likely to be seeking rental housing, which might limit the pool of potential tenants. Despite this, the demand for Section 8 housing could still be robust given the financial assistance it offers to eligible tenants.
Verdict: While the rent math appears favorable due to the disparity between FMR and market rent, the limited data on acquisition costs and the modest tenant demand suggest caution. Landlords should carefully assess the specific needs of their portfolio and the local market dynamics before investing in this ZIP code. The opportunity lies in the potential for higher rental income through Section 8 subsidies, but the success will depend on the ability to attract and retain tenants within a smaller pool.
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.