Location: Oneida County, WI | Metro: Langlade County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 54463 provides a detailed look at potential investment returns. The Fair Market Rent (FMR) for a two-bedroom apartment in the area is set at $970 annually, based on FY 2026 metro figures. In contrast, the Census ACS indicates a market rent of $808 per month.
To calculate the implied gross yield for the FMR scenario, we annualize the rent to $11,640 ($970 x 12 months). Dividing this by the median home value of $333,617 gives an implied gross yield of approximately 3.5%. For the market rent scenario, annualizing $808 to $9,696 ($808 x 12 months) and dividing by the same median home value yields about 2.9%.
The gross yield derived from the FMR scenario is higher, suggesting that properties receiving Section 8 payments could generate a better return compared to those rented at market rates. However, the choice between these scenarios should be informed by the local rental market dynamics and the specific conditions of individual properties.
ZIP 54463 has a renter density of 21.6%, indicating that a significant portion of the population owns homes rather than renting. This factor can influence the demand for rental properties, including those participating in the Section 8 program. While the exact number of days on market (DOM) is not available, it's crucial to consider how quickly units can be leased under each scenario.
In conclusion, while the Section 8 FMR scenario offers a higher gross yield at 3.5%, the actual performance will depend on the property's condition and location within the ZIP code. Given the lower renter density, landlords and small-portfolio investors might find the market rent scenario more realistic, despite the slightly lower gross yield of 2.9%. Investors should conduct thorough due diligence to determine the best approach for their investment strategy.
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.