Location: Appleton, 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 | $920 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $247,349 | 0.51% | F |
| 3BR | $1,740 | $303,524 | 0.57% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 54140, which encompasses Little Chute, WI, Outagamie County, and the Appleton, WI MSA metro, reveals several key points. The HUD Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $970. In contrast, the market rent based on Census ACS data stands at $1,072, indicating that voucher tenants will generally provide marginal cash flow rather than positive cash flow at the standard FMR rate.
To understand the financial dynamics better, consider the median home value in the area, which is $298,528. This figure allows us to calculate the rent-to-price ratio, providing insight into the comparative attractiveness of renting versus buying. With a market rent of $1,072, the annual rent is approximately $12,864. Dividing this by the median home value yields a rent-to-price ratio of roughly 4.31%. This suggests that while rental income might be slightly less than market rent, it remains competitive relative to home values.
The days on market (DOM) and price-cut percentage, which are not available for this area, would typically help gauge the urgency of renters and sellers in the market. However, given the lack of this data, we can still infer that the stability of rental income from Section 8 tenants is a strong point in favor of investing in the area. The consistent nature of government-backed rents offers a reliable source of income, even if it does not fully cover the market rent.
In conclusion, for Section 8 investors in ZIP code 54140, the primary angle is stability. While cash flow may be marginal due to the gap between HUD FMR and market rent, the guaranteed nature of the rental income provides a solid investment strategy in a region where home values suggest a balanced rent-to-price ratio.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.