Location: Shawano County, WI | Metro: Wausau, WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The ZIP code 54427, located in Shawano County, WI, offers a strategic fit for landlords and small-portfolio investors within a Section 8 portfolio strategy. This area serves best as a cash-flow anchor. The Federal Market Rent (FMR) for ZIP 54427 in fiscal year 2024 is set at $910, while the current market rent stands at $875. This creates a positive spread of $35 per unit, ensuring that landlords receive slightly above-market rental income, which can help stabilize and enhance cash flow.
The median home value in ZIP 54427 is $244,876. This figure suggests that the area is relatively affordable, which could mean lower acquisition costs for new properties. Additionally, the higher FMR compared to the market rent indicates that landlords can rely on steady, government-backed rental payments, reducing the risk associated with potential market fluctuations.
ZIP 54427 does not present itself as an appreciation play due to the lack of significant data points regarding price-cut shares and days on market (DOM). These metrics would typically indicate whether the housing market is experiencing growth or stagnation, but their absence here means we cannot confidently predict strong price appreciation in the near future.
While the ZIP code has a renter share of 10.6%, which might suggest some diversification benefits, the primary appeal remains its role as a cash-flow anchor. The median income of $83,958 supports the stability of the tenant base, ensuring that residents can afford to pay their rent on time and maintain occupancy rates, which is crucial for consistent cash flow.
In conclusion, ZIP 54427 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Its favorable FMR-to-market rent spread and stable median income provide landlords with a reliable source of income and reduced risk, making it a valuable component of a diversified investment portfolio.
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.