Section 8 Fair Market Rent (FMR) for ZIP 54220 - 2027

Investment Score for ZIP 54220

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$770
1 Bedroom	$780
2 Bedrooms	$1,010
3 Bedrooms	$1,210
4 Bedrooms	$1,340
5 Bedrooms	$1,554
6 Bedrooms	$1,740
7 Bedrooms	$1,879
8 Bedrooms	$1,973

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$780	$144,521	0.54%	F
2BR	$1,010	$193,392	0.52%	F
3BR	$1,210	$241,438	0.5%	F
4BR	$1,340	$262,426	0.51%	F
5BR	$1,554	$281,856	0.55%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 54220 (Manitowoc, WI) #### Section 8 Voucher Dynamics In ZIP code 54220, the Fair Market Rent (FMR) for a two-bedroom unit is set at $970 per month for 2026. This represents approximately 17.6% of the median household income of $66,035, which indicates that it is a reasonable rent amount relative to the local income levels. However, the actual rental market in Manitowoc appears to be significantly higher than the FMR. The Zillow median price for a two-bedroom home is $183,840, which translates into a monthly rent of around $1,532 based on a typical 1% monthly rent-to-price ratio. This means that the actual rent in the area is about 15.8 times the FMR, suggesting that many properties are priced well above what Section 8 vouchers can cover. The constraints for voucher holders in Manitowoc are quite significant due to the high price-to-FMR ratio. A tenant with a Section 8 voucher would struggle to find a property that fits within their budget, especially since landlords often prefer higher-paying tenants who do not require government assistance. This disparity between FMR and actual rents could lead to difficulties for voucher holders in securing housing, potentially resulting in a shortage of available units for them. #### Affordability & Renter Profile The population of Manitowoc is 40,949, with 28.5% of residents being renters. This suggests a moderate rental market presence, but the occupancy rate of 91.7% indicates that there is a strong demand for housing. Given that the median household income is $66,035, the affordability of housing is a critical issue for many residents. For those relying on Section 8 vouchers, the $970 FMR for a two-bedroom unit is a substantial portion of their income, making it challenging to find affordable housing options. The high price-to-FMR ratio of 15.8x implies that the market is relatively tight and competitive, particularly for lower-income renters. With only 28.5% of the population renting, the competition for rental units is likely to be fierce, especially among those who cannot afford the higher rents commanded by the market. This tightness in the rental market could exacerbate the challenges faced by low-income renters, including those with Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 54220 presents a mixed picture. While the actual rental market prices are much higher than the FMR, the potential for cash flow when renting to Section 8 voucher holders is limited. The FMR for a two-bedroom unit is $970, which is significantly below the market rent of around $1,532. This means that landlords who accept Section 8 vouchers will have to operate at a lower rent-to-price ratio, which could reduce profitability. However, the high occupancy rate of 91.7% suggests that there is strong demand for rental properties, which could provide some stability in the rental market. Despite the high price-to-FMR ratio, the overall rental market remains robust, and there is a steady stream of tenants looking for housing. This could make the area attractive to investors willing to accept Section 8 vouchers, although they would need to carefully manage their costs to ensure positive cash flow. The investment grade for this ZIP code would be considered moderate. While the rental market is strong, the high price-to-FMR ratio poses a challenge for investors focusing on Section 8 vouchers. They would need to balance the benefits of stable occupancy against the lower rents associated with vouchers. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are priced closer to the FMR. For example, a two-bedroom unit priced at $1,000-$1,100 per month would be more attractive to voucher holders and still offer a reasonable profit margin compared to the FMR of $970. This strategy would help mitigate the risk of vacancy while ensuring a manageable cash flow. 2. **Consider Multi-Family Units**: Given the high FMR for larger units, multi-family properties might offer better opportunities. For instance, a three-bedroom unit with an FMR of $1,170 could be more appealing to families, and the higher rent could offset the lower price-to-FMR ratio. Additionally, multi-family units can spread the cost of maintenance and management across multiple units, improving overall profitability. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help secure a steady stream of Section 8 voucher holders. These authorities can provide valuable insights into the availability of vouchers and the needs of the local community, helping investors tailor their offerings to meet demand effectively. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 54220 is to **Hold**. While the market is tight and the price-to-FMR ratio is high, the strong occupancy rate provides some stability. However, investors should be cautious and consider targeting lower-rent properties or multi-family units to maximize their chances of positive cash flow. Engaging with local housing authorities can also help navigate the complexities of the Section 8 program in this area. Overall, Manitowoc offers a moderate investment opportunity, but careful selection of properties and strategic management are essential for success.

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.