Location: Door County, WI | Metro: Green Bay, WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 54205, located in Door County, WI, reveals several key points that landlords and small-portfolio investors should consider before entering this market.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 54205 in fiscal year 2024 is set at $910. In contrast, the market rent based on Census ACS data stands at $1,031. This indicates that landlords can expect to charge a premium over the FMR, potentially allowing for higher profits if they can attract tenants willing to pay above the subsidized rates.
Secondly, regarding the affordability of acquisitions, the median home value in ZIP 54205 is $334,520. Unfortunately, the data does not provide insights into the number of days on the market (DOM) or the percentage of homes that have been subject to price cuts. Without these specifics, it's challenging to gauge the ease or difficulty of acquiring properties at fair prices. However, the median home value suggests that property acquisition costs are relatively high compared to other areas in the state, which could affect overall investment returns.
Lastly, the tenant demand in ZIP 54205 is low. With a total population of 2,229 and only 5.3% of residents being renters, the pool of potential tenants is limited. This demographic characteristic implies that landlords may face challenges in filling units and maintaining occupancy levels, especially given the higher market rents.
Verdict: While landlords can charge a premium over the FMR, the high median home value and low renter share pose significant risks. The limited demand for rental properties in ZIP 54205 makes it less attractive for investment. Landlords should carefully evaluate the local market conditions and consider alternative strategies such as targeting vacation rentals or second-home buyers to mitigate the risk of low tenant demand.
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.