Location: Marinette County, WI | Metro: Forest County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 54125 provides a detailed look at the potential rental income for landlords and small-portfolio investors. Using the Federal Market Rent (FMR) of $970 for a two-bedroom apartment, which is the annualized figure for fiscal year 2026, we can calculate an implied gross yield. This calculation involves dividing the annual rental income by the median home value, which is reported at $151,806.
First, let's compute the gross yield based on the FMR. The annual rent at the FMR rate is $970, so the gross yield would be:
$970 / $151,806 = 0.0064, or approximately 0.64%.
Next, using the market rent of $533, which is derived from the Census ACS data, the gross yield is calculated as follows:
$533 / $151,806 = 0.0035, or approximately 0.35%.
The gross yields derived from these calculations present a stark contrast. At 0.64%, the FMR scenario suggests a much lower return compared to the market rent scenario, which implies a gross yield of 0.35%. However, it's important to note that the FMR represents a maximum allowable rent for subsidized housing under the Section 8 program, whereas market rent reflects what tenants might actually pay without subsidy.
Given the 12.4% renter density in ZIP 54125, it's crucial to consider the likelihood of finding tenants willing to pay the higher FMR rate. The N/A-day Days on Market (DOM) indicates that there isn't sufficient data to determine how quickly properties are rented out, which could suggest either a stable rental market or insufficient data points to draw conclusions.
In practice, landlords should expect the market rent scenario to be more realistic due to the actual willingness of tenants to pay. The FMR rate, while higher, is subject to the availability of Section 8 vouchers and the tenant's qualification for such programs. Therefore, the gross yield of 0.35% from market rent should serve as a more reliable benchmark for investment decisions in ZIP 54125.
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.