Location: Wausau, WI | Metro: Wausau, WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The ZIP code 54417 presents several challenges for potential Section 8 landlords and small-portfolio investors. Firstly, tenant turnover could be problematic due to the discrepancy between market rent and the Fair Market Rent (FMR) of $1010 for FY 2024. Since the market rent is not available, it's unclear how competitive this FMR will be, which might lead to higher tenant churn if the FMR does not match local expectations.
Vacancy exposure is another concern. With the number of days on market (DOM) being unavailable, it's difficult to predict how quickly properties can be filled. This uncertainty increases the risk of prolonged vacancies, which can significantly impact cash flow and profitability.
Deferred maintenance is also a risk factor. The typical home value and median income figures for the area are not provided, making it hard to assess the financial capacity of residents to maintain homes at a standard acceptable to Section 8 programs. Without this data, there is a risk that landlords might face substantial maintenance costs to meet program requirements.
However, these risks must be weighed against the fact that ZIP 54417 has a 0.0% renter share. While this seems unusually low, it typically indicates a very high owner-occupancy rate. In practice, areas with high renter density often have a greater demand for housing vouchers, which can stabilize occupancy rates. Conversely, a low renter share might mean less competition for voucher holders but also fewer overall renters to fill vacancies.
A final consideration is the demand for Section 8 vouchers. Despite the low renter share, the scarcity of rental properties could drive up demand for the limited Section 8 units available. This scenario could work in favor of landlords by ensuring a steady stream of tenants, though the exact dynamics would depend on the local housing authority's policies and the number of vouchers issued.
Verdict: Moderate risk for a first-time Section 8 landlord. The unknowns regarding market rent and DOM, coupled with potential deferred maintenance issues, present significant challenges. However, the unique characteristics of the ZIP code, including its low renter share, offer a mixed picture that requires careful evaluation before investment.
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.