Location: Wausau, WI | Metro: Wausau, WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 54476 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1040 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, ensuring it reflects the local housing market conditions accurately.
In contrast, the local market rent for a similar two-bedroom unit, as measured by ZORI (Zillow Observed Rent Index), stands at $913. This indicates that the SAFMR is higher than the average market rent, providing a potential advantage for landlords participating in the program.
A landlord's actual income from a Section 8 voucher depends on several factors, including the tenant's contribution and utility allowances. The tenant's portion is typically 30% of their adjusted income, while the utility allowance varies but is generally around $150-$200 per month for a two-bedroom unit.
To illustrate, if the SAFMR is $1040, and the tenant contributes 30% of their income, say $300, the Housing Authority would cover the remainder. However, the Housing Authority does not pay the full difference; they will reimburse up to the SAFMR limit. Thus, the reimbursement would be $1040 minus the tenant's contribution ($300), leaving $740. If utility allowances are included, say at $175, the total reimbursement to the landlord would be $915.
This calculation shows that even with the utility allowance, the landlord receives slightly above the local market rent of $913. Therefore, there is a small surplus of $2 for landlords who participate in Section 8 in ZIP 54476. This surplus can be seen as an additional benefit, especially when considering the guaranteed payment from the Housing Authority, which reduces the risk of non-payment compared to market-rate rentals.
Landlords should also note that the SAFMR being higher than the ZORI can lead to more interest from tenants looking for affordable housing options. This can help fill vacancies quickly, though it's important to maintain units to meet the quality standards required by the Section 8 program.
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.