Location: Wausau, WI | Metro: Wausau, WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 54474 in Wausau, WI MSA reveals several key insights. The HUD Fair Market Rent (FMR) for the area is set at $950 for FY 2024, while the market rent based on Census ACS data is $970. This means that voucher tenants will cashflow at FMR, albeit marginally, given the slight difference between the two figures.
To further understand the investment potential, consider the median home value in the area, which stands at $247,957. Using this figure, we can calculate the rent-to-price ratio. With an average monthly rent of $970, the annual rent is approximately $11,640. Dividing this by the median home value yields a rent-to-price ratio of about 4.7%, indicating that rental income alone may not fully cover mortgage payments and expenses for typical units. However, premium units or those with strategic renovations could achieve better cashflow margins.
The dynamics of days on market (DOM) and price-cut shares are not applicable in this scenario (N/A), as they pertain more to the buying market rather than the rental market. Nevertheless, these factors can indirectly influence the rental market through supply and demand mechanisms. For instance, if homes are selling quickly without price reductions, it suggests strong demand, which can support higher rents and property values over time.
The strongest investor angle in ZIP 54474 is stability. Given the close alignment between the HUD FMR and market rent, along with the median home value, investors can expect consistent cashflow and minimal risk of vacancy. Stability provides a reliable foundation for long-term investment strategies, ensuring steady returns and reducing the volatility often associated with real estate investments.
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.