Location: Taylor County, WI | Metro: Price County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $970 for ZIP code 54470 in fiscal year 2026 will be sufficient to cover the mortgage on a home valued at $211,462. The FMR is a critical benchmark for determining rental assistance payments under the Section 8 program. However, it does not directly reflect the monthly mortgage payment. To accurately assess this, one must consider the prevailing interest rates and the loan terms. Assuming a typical 30-year fixed-rate mortgage with an interest rate around 4%, the monthly mortgage payment for a $211,462 home would be approximately $1,025. This means that the FMR of $970 falls slightly short of covering the mortgage payment. However, landlords can supplement the difference with other income sources or consider refinancing options.
The second objection could be whether there is enough renter demand at 18.3% of the population renting homes. While 18.3% may seem low, it is important to note that this percentage represents the total number of renters in the area. For Section 8, the key metric is the number of eligible renters who are seeking assistance. If the local unemployment rate is stable and job growth is positive, the demand for subsidized housing could remain steady or increase. However, the data does not provide a direct measure of the demand for Section 8 properties specifically. To make a more informed decision, an investor should research local trends in public housing assistance applications and waitlist sizes.
A third concern might be whether voucher payments will keep pace with the market rents, which are currently at $738. Historically, the Housing Choice Voucher program has adjusted its payments to align with the FMR, ensuring that voucher holders can afford decent housing. In ZIP 54470, the FMR of $970 is higher than the current market rent of $738, suggesting that voucher holders can potentially afford homes above the average market price. However, the future adjustment of voucher amounts to match the increasing FMR is uncertain and dependent on federal funding levels and policy decisions. It is prudent for investors to monitor these adjustments closely to ensure they receive adequate compensation for their properties.
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.