Location: Shawano County, 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 | $820 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $229,649 | 0.49% | F |
| 3BR | $1,550 | $308,524 | 0.5% | F |
| 4BR | $1,730 | $341,900 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 54165 in Seymour, Wisconsin, reveals interesting insights into the potential returns for landlords and small-portfolio investors. To begin, let's consider the Fair Market Rent (FMR) for a two-bedroom apartment, which stands at $910 per month for fiscal year 2024. This translates to an annualized rental income of $10,920. In contrast, the market rent for a similar property, based on Census ACS data, is slightly higher at $914 per month, or $10,968 annually.
Given the median home value in the area is $346,381, we can calculate the implied gross yield for both scenarios. For the FMR scenario, the gross yield would be approximately 3.15%, calculated by dividing the annual rental income ($10,920) by the median home value ($346,381). In the case of market rent, the gross yield increases to about 3.16%, using the annual market rent figure ($10,968).
While these yields provide a starting point for understanding the financial landscape, it is important to consider the local rental market dynamics. The renter density in ZIP 54165 is 21.6%, indicating that a significant portion of the population owns homes rather than renting. This could affect the stability and demand for rental properties, particularly those participating in the Section 8 program. Additionally, the N/A-day DOM (days on market) suggests either limited data availability or a very active market where properties are leased quickly, which might indicate strong demand.
In reality, the market rent scenario is likely more reflective of what landlords can expect to earn, given the slight premium over the FMR. However, the difference in gross yield between the two scenarios is minimal, suggesting that the primary factor influencing investment decisions should be the overall demand for rentals and the stability of the tenant pool. Investors should also factor in the administrative complexities and potential risks associated with the Section 8 program when evaluating the true profitability of such investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.