Location: Shawano County, WI | Metro: Shawano County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 54127 reveals some interesting points. To start, the Fair Market Rent (FMR) for a 2-bedroom apartment annualized is $1,030 per month, based on the fiscal year 2026 metro data. However, the median home value in the area is not available, and neither is the current market rent, making direct comparisons challenging.
In the case where we use the FMR, the annual rental income for a 2-bedroom property would be $12,360. The implied gross yield can be calculated using the formula:
Gross Yield = (Annual Rental Income / Median Home Value) * 100
Since the median home value is not available, we cannot provide an exact figure for the gross yield based on the FMR. However, it's important to note that the FMR represents the maximum amount that the government will pay for a rental unit, so properties should not be priced higher than what they could potentially earn under the Section 8 program.
The lack of market rent data complicates the second scenario. If the market rent were known, it would allow us to calculate the gross yield in a similar manner. Without this information, we must rely on the FMR data to estimate potential yields.
The renter density in ZIP 54127 is 22.2%, indicating a moderate demand for rental properties. This percentage is crucial for understanding how many residents might be interested in renting versus owning. Additionally, the Days on Market (DOM) data is also not available, which would help gauge how quickly properties are being leased.
Given the limited data, the FMR scenario provides the most concrete basis for estimating the gross yield. Landlords and small-portfolio investors should consider the FMR as a conservative estimate for potential rental income when evaluating properties in ZIP 54127 under the Section 8 program. While the market rent could potentially offer higher gross yields, without specific figures, the FMR remains the only reliable metric for calculating the implied gross yield in this analysis.
Note: For a comprehensive financial analysis, investors should input their specific costs and expenses to determine the Net Operating Income (NOI).
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.