Location: Langlade County, WI | Metro: Oconto County, WI HUD Metro FMR Area
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 | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $295,743 | 0.34% | F |
U.S. Census Bureau data (2024)
ZIP 54175, located in Townsend, WI, within the Langlade County, WI metro area, can serve as a cash-flow anchor in a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) for the fiscal year 2024 and the current market rental rates.
The FMR for ZIP 54175 in fiscal year 2024 is set at $960. In contrast, the median market rent for the same period is estimated at $621. This means that landlords participating in the Section 8 program can expect to receive a higher rental payment compared to the local market average, thereby securing steady and reliable cash flow.
The median home value in ZIP 54175 is $327,084. While this figure might seem high, it's important to note that the median income in the area is also relatively robust at $87,614. However, the primary focus for a cash-flow anchor is the guaranteed rental income from the government, which is not contingent upon market fluctuations or the economic conditions of individual tenants.
The 4.5% renter share indicates that the majority of residents in ZIP 54175 own their homes, making it less likely for the rental market to be volatile. This stability further supports the use of ZIP 54175 as a cash-flow anchor, as it minimizes the risk of tenant turnover and ensures consistent income streams.
While appreciation plays and diversifiers have their merits, ZIP 54175 excels as a cash-flow anchor due to the substantial difference between the FMR and market rents, providing landlords with a secure financial foundation. The higher Section 8 payment compared to the local market rate ensures that landlords can cover mortgage payments, maintenance costs, and other expenses without relying on fluctuating market conditions.
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.