Location: Wausau, WI | Metro: Wausau, WI MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $181,027 | 0.67% | D |
| 3BR | $1,590 | $227,903 | 0.7% | D |
| 4BR | $1,600 | $274,665 | 0.58% | F |
| 5BR | $1,856 | $366,498 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 54403, located in Wausau, WI, presents a unique scenario for landlords and small-portfolio investors due to the narrow gap between the Fair Market Rent (FMR) and the market rent, known as the Zillow Rent Index (ZORI). For fiscal year 2024, the FMR is set at $990, while the ZORI stands at $996. This represents a mere $6 difference, or approximately 0.6% between the two figures.
In Wausau, where 35.0% of residents are renters, and the median home value is $231,403 with a median income of $69,030, the dynamics of the rental market are crucial. The FMR being slightly lower than the market rent means that landlords accepting Section 8 tenants will be renting their properties below the open-market rate. This difference can impact the overall profitability of a rental property investment.
Despite the gap, there are strategic advantages to having voucher tenants. Section 8 provides a steady stream of rental income guaranteed by the federal government. This ensures that landlords receive consistent payments even if the rent is slightly below market rates. Moreover, the tenant selection process under Section 8 tends to favor responsible individuals who are likely to maintain the property well, reducing the risk of damage and the costs associated with frequent turnover.
However, it's important to note the implications of renting below market rates. In an area where the median income is $69,030, landlords must consider the potential for higher vacancy rates among open-market tenants. The lower FMR could also indicate a challenging economic environment where a significant portion of the population relies on government assistance to afford housing. Therefore, while the gap is minimal, the decision to accept Section 8 tenants should be weighed against the broader economic context of Wausau.
To summarize, the $6 gap between the FMR and market rent in ZIP 54403 is a minor factor in the overall decision to participate in the Section 8 program. Landlords must balance the benefits of guaranteed income and stable tenancy against the slightly reduced rental rates and the economic realities of Wausau, WI.
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.