Location: Portage County, WI | Metro: Wausau, WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 54455, located in Mosinee, WI, provides a clear snapshot of the investment potential in this area. For a two-bedroom unit, the Fair Market Rent (FMR) set by the HUD for fiscal year 2024 is $1,060 per month. When annualized, this figure amounts to an annual rental income of $12,720. The median home value in the area is $316,496, which means that if a landlord were to purchase a property at this price point and lease it under Section 8 guidelines, the implied gross yield would be approximately 4%. This is calculated by dividing the annual rental income ($12,720) by the median home value ($316,496).
In contrast, the market rent for a similar two-bedroom unit is slightly higher at $1,103 per month according to the latest Census ACS data. Annualizing this market rent figure yields an annual rental income of $13,236. Using the same median home value, the gross yield based on market rent is approximately 4.2%. This represents a marginal improvement over the Section 8 scenario.
Given the 19.3% renter density in Mosinee, the lower gross yield under Section 8 is more reflective of the reality in this market. The renter density suggests that a significant portion of the population owns homes rather than rents, which can limit the pool of potential tenants for Section 8 properties. Additionally, the N/A-day Days on Market (DOM) indicates that there might be a lack of recent sales data to accurately assess how quickly rental units are occupied, further supporting the conservative gross yield estimate under Section 8 guidelines.
In summary, the gross yield under Section 8 for ZIP 54455 is 4%, while the market rent implies a slightly better gross yield of 4.2%. Considering the local market conditions, the Section 8 yield is more realistic for landlords and small-portfolio investors looking to enter this market.
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.