Section 8 Fair Market Rent (FMR) for ZIP 54313 - 2027

Investment Score for ZIP 54313

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	$1,070
1 Bedroom	$1,120
2 Bedrooms	$1,400
3 Bedrooms	$1,850
4 Bedrooms	$1,920
5 Bedrooms	$2,227
6 Bedrooms	$2,494
7 Bedrooms	$2,694
8 Bedrooms	$2,829

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,400	$300,704	0.47%	F
3BR	$1,850	$410,176	0.45%	F
4BR	$1,920	$494,573	0.39%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 54313 (Howard, WI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Howard, WI, in ZIP code 54313, provide a benchmark for rental costs that are subsidized by the government through the Section 8 program. According to the data, the FMRs for 2026 are as follows: - 0BR: $950 - 1BR: $1020 - 2BR: $1270 (which is 14.2% of the median household income) - 3BR: $1690 - 4BR: $1770 These figures represent the maximum rent that can be charged to a tenant using a Section 8 voucher. However, the actual rents in the area are significantly higher, as evidenced by the Zillow median price for a 2BR home being $290,454. The price-to-FMR ratio for a 2BR unit is 19.1x, indicating that the actual market rent far exceeds the FMR. This means that tenants using Section 8 vouchers will likely face significant challenges finding housing within the allowable limits, especially for larger units like 3BR and 4BR homes. #### Affordability & Renter Profile In Howard, WI, the population is 41,422, and 17.1% of the households are renters. With a median household income of $107,599, the affordability of housing is relatively high for the average resident. However, the occupancy rate of 96.5% suggests that the market is quite tight, with limited availability of rental properties. Given that only 14.2% of the median income is allocated towards the FMR for a 2BR unit, it implies that the typical renter in this area has a substantial disposable income. This makes the market attractive for higher-end rentals but poses difficulties for lower-income individuals who rely on Section 8 vouchers. The tight market conditions mean that landlords have little incentive to accept Section 8 tenants, as they can easily find other paying residents willing to pay higher rents. #### Investor Angle From an investor's perspective, the ZIP code 54313 presents a mixed picture. While the median home prices indicate a robust real estate market, the FMRs suggest that there is a significant gap between what investors could potentially charge and what is allowed under the Section 8 program. For instance, the FMR for a 2BR unit is $1270, while the Zillow median price suggests that the actual market rent would be much higher, possibly around $15,200 annually ($290,454 divided by 19.1). This discrepancy means that investors focusing solely on Section 8 tenants would need to operate within strict financial parameters. The cash flow potential at FMR levels would be lower compared to the broader market, which could affect the overall profitability of such investments. Given these constraints, the investment grade for Section 8-focused properties in this ZIP code would be considered low due to the limited rental income relative to the property value. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units like 0BR and 1BR apartments, where the FMRs are $950 and $1020 respectively. These units are more likely to be affordable for Section 8 tenants, and the demand for smaller units might be higher given the tight market conditions. 2. **Consider Mixed-Income Developments**: To maximize returns, investors could explore developing mixed-income housing projects. This would allow them to cater to both Section 8 tenants and market-rate renters, thereby balancing the financial risks associated with relying solely on subsidized rents. 3. **Utilize Local Real Estate Trends**: Given the high occupancy rate and the relatively affluent population, investors should also keep an eye on local real estate trends. If there is a growing demand for rentals, it might be possible to negotiate slightly higher rents with landlords willing to accept Section 8 vouchers, thus improving cash flow. #### Bottom Line For Section 8-focused investors, the ZIP code 54313 presents a challenging environment due to the high market rents and the limited number of units that fall within the FMR guidelines. The recommendation would be to **skip** this market unless investors are willing to take on the additional risk of operating at lower-than-market rents. Instead, investors might want to look for areas with lower median home prices and higher renter populations to ensure better alignment with Section 8 voucher dynamics and improved cash flow potential.

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.