Location: Appleton, WI | Metro: Appleton, WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 54123 reveals several critical issues that could impact a landlord's decision to enter the Section 8 market. Firstly, the tenant turnover rate is a significant concern due to the disparity between the market rent, which is currently unavailable, and the Fair Market Rent (FMR) of $910 for FY 2024. This discrepancy can lead to higher turnover if the market rent exceeds the FMR, making it less attractive for tenants who do not qualify for vouchers.
Vacancy exposure is another risk factor, as the days on market (DOM) for rental properties in this area is also unspecified. A longer DOM indicates higher vacancy rates, which can be costly for landlords. In addition, the deferred maintenance exposure is substantial, considering the median home value is not specified but the median income stands at $58,750. This suggests that homeowners might struggle to maintain their properties, potentially leading to lower-quality housing stock in the rental market.
However, these risks are mitigated by the high concentration of renters in the area, with a 5.0% renter share indicating a dense population of potential voucher holders. High renter density often translates into greater demand for Section 8 properties, stabilizing occupancy levels and ensuring a steady stream of tenants.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 54123 is moderate. While there are notable risks associated with tenant turnover and property maintenance, the strong presence of renters in the area provides a counterbalance that supports stable demand for subsidized housing.
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.