Location: Wausau, WI | Metro: Wausau, WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 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 analysis of ZIP code 54426, located within the Wausau, WI MSA, reveals several key points for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 54426 in fiscal year 2024 is set at $910. In contrast, the market rent as per the Census ACS data is $804. This indicates that the rent math does not align perfectly; landlords may find it challenging to justify charging $910 when the market rate is lower. However, it's important to note that FMRs are often higher to account for subsidies and ensure affordability for low-income households.
Regarding the affordability of acquisition, the median home value in ZIP 54426 is $260,628. Unfortunately, the data on the number of days on market (DOM) and the percentage of homes needing a price cut is not available, which makes it difficult to assess how quickly homes sell and at what price point. Nonetheless, the median home value suggests that property acquisition costs are moderate, potentially offering a reasonable entry point for investment.
Tenant demand is another critical factor. With a total population of 4,275, 14.7% of residents are renters. This translates to approximately 629 renters in the area. While the overall population is relatively small, the renter share provides a solid base of potential tenants. However, the limited number of renters means that competition for tenants could be intense, especially if the rental market is tight.
In conclusion, ZIP 54426 presents a mixed scenario for real estate investment. The discrepancy between FMR and market rent highlights a potential challenge in pricing strategies, while the median home value offers a feasible acquisition cost. Tenant demand exists but is constrained by the small population size, suggesting that landlords must carefully manage their properties and rents to remain competitive. Investors should proceed with caution, ensuring they understand local market dynamics and are prepared to adjust their expectations accordingly.
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.