Location: Portage County, WI | Metro: Portage County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 54407 reveals a significant opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by the Department of Housing and Urban Development for the fiscal year 2026 is $1,160, while the actual market rent, as reported by the Census Bureau's American Community Survey (ACS), stands at $1,090. This means that there is a $70 gap, or approximately 6.2%, between what the government will pay for a voucher tenant and what the open market demands.
This scenario presents a yield play for landlords. Given that the FMR exceeds the market rent, voucher tenants can offer a stable source of income. Landlords can expect to receive $1,160 per month from the government, which is higher than the average market rent. This discrepancy allows landlords to profit from the difference without taking on the risk of vacancy or delinquency often associated with market-rate rentals.
In ZIP 54407, only 8.9% of the population are renters, indicating a relatively low demand for rental properties. However, the median home value is $364,648, suggesting a strong local economy. With a median income of $101,563, residents have the financial capacity to afford homeownership, further explaining the low rental rate. Despite these conditions, the Section 8 program provides a consistent revenue stream that can be more attractive than the fluctuating nature of the open market.
Moreover, the lower market rent compared to the FMR can reduce renovation costs for landlords accepting voucher tenants. Typically, properties need to meet certain standards to qualify for the Section 8 program, but since the FMR is higher than the market rent, landlords might find it more economical to maintain their properties to the required standards, knowing they will be compensated at a higher rate.
Investors should also consider the broader economic context. While the median income supports homeownership, it also implies that those who rely on housing vouchers might face challenges in finding affordable housing. Therefore, participating in the Section 8 program can be a socially responsible decision that aligns with financial gains. The key is to leverage the FMR advantage while ensuring compliance with the program's requirements.
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.