Location: Shawano County, WI | Metro: Wausau, WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 54409 provides insight into potential investment returns for landlords and small-portfolio investors. Using the Federal Market Rent (FMR) for a 2-bedroom apartment at $910 per month for FY 2024, the annualized rental income would be $10,920. Given the median home value in the area is $173,925, the implied gross yield for a Section 8 property would be approximately 6.28%. This calculation is derived from dividing the annual rental income by the median home value.
In contrast, using the market rent figure of $697 per month from the Census ACS data, the annualized rental income drops to $8,364. The implied gross yield for a market-rent property would then be about 4.81%, calculated similarly by dividing the annual rental income by the median home value. This comparison highlights that Section 8 properties can offer a higher gross yield compared to market-rent properties.
The 29.8% renter density suggests a moderate demand for rental housing in ZIP 54409. However, the lack of data on days on market (DOM) makes it challenging to gauge the speed at which properties are leased. Despite this limitation, the higher gross yield from Section 8 properties is more likely to attract investors due to the guaranteed income and lower vacancy risk associated with the program.
While market rents might fluctuate, the stability provided by Section 8 contracts, coupled with the higher gross yield, positions them as a more attractive option for long-term investment. Investors should consider these figures when evaluating the potential returns of properties in ZIP 54409.
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.