Location: Green Bay, WI | Metro: Green Bay, WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
The analysis for ZIP code 54305 in Unknown, WI, revolves around three key questions to determine if purchasing a property there for Section 8 is a sound investment.
1) Does the Fair Market Rent (FMR) of $1060 for fiscal year 2024 clear debt service on a property?
Yes: If the FMR of $1060 is sufficient to cover all mortgage payments, taxes, insurance, and maintenance costs, then the answer is yes. This ensures that the property can be rented out to Section 8 tenants without financial loss.
No: If the FMR of $1060 does not meet or exceed the total debt service requirements, then acquiring a property in this ZIP code would result in a deficit, making it an unwise investment.
2) Is the market rent above, at, or below the FMR of $1060?
Above FMR: If the market rent is higher than $1060, landlords should consider whether they can attract non-Section 8 tenants willing to pay the higher rates. If so, they might want to reconsider their investment strategy.
At FMR: When market rent matches the FMR, it indicates a balanced market where Section 8 tenants are likely to find properties affordable, and landlords can cover their expenses.
Below FMR: A market rent lower than $1060 suggests a soft rental market. Landlords should proceed with caution as it could indicate difficulty in finding tenants or lower occupancy rates.
3) Are the percentage of renters and the days on market (DOM) indicative of enough demand?
Sufficient Demand: If the percentage of renters in the area is high and the DOM is low, this points towards strong demand for rental properties. Landlords can expect to fill vacancies quickly.
Moderate Demand: With moderate percentages of renters and DOM values, landlords might face some challenges in maintaining occupancy but still have a viable investment opportunity.
Limited Demand: Low percentages of renters combined with high DOM values signal a weak demand for rentals. In such a scenario, landlords would struggle to keep their properties occupied, leading to potential financial losses.
To summarize, the decision to invest in ZIP 54305 for Section 8 properties hinges on the ability of the FMR to cover debt service, the comparison between market rent and FMR, and the overall demand for rental properties. Each of these factors must align favorably for a positive investment outcome.
Data Sources: FMR data from HUD (2027).
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.