Location: Manitowoc County, WI | Metro: Manitowoc County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 54214 reveals a complex picture due to the lack of specific data points, particularly the median home value. However, we can still provide insights based on the available figures.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 54214 for fiscal year 2026 is set at $1,000 annually. This implies a gross yield of approximately 15.46% if the median home value were hypothetically $6,470 (which it isn't; this figure is used purely for illustrative purposes).
In contrast, the market rent for a 2-bedroom apartment in the area is recorded at $647 per month according to the Census ACS data. This translates to an annual market rent of $7,764, suggesting a gross yield of around 11.99% under the same hypothetical median home value scenario.
Given that the actual median home value is not available, these calculations serve only as a basis for comparison. The critical point here is that the Section 8 FMR provides a lower gross yield compared to the market rent. This means that landlords who accept Section 8 tenants in ZIP 54214 would see a reduced return on investment relative to those renting at market rates.
The renter density in ZIP 54214 stands at 11.5%, indicating a relatively low demand for rental properties compared to owner-occupied homes. This statistic suggests that the competition among renters might be less intense, potentially making market rents more variable and harder to predict.
The Days on Market (DOM) is also not available, which is crucial for understanding how quickly rental units turn over. Without this data, it's challenging to assess the liquidity and operational efficiency of rental properties in the area.
In conclusion, while the Section 8 FMR offers a gross yield of about 15.46% under our hypothetical scenario, the market rent indicates a slightly higher gross yield of around 11.99%. Given the low renter density, the market rent scenario may be more realistic, but investors should consider the variability in rental markets and the specifics of property management when deciding whether to participate in the Section 8 program or aim for market rates.
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.