Location: Oneida County, WI | Metro: Lincoln County, WI
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $256,984 | 0.39% | F |
| 3BR | $1,310 | $350,489 | 0.37% | F |
U.S. Census Bureau data (2024)
A decision tree for ZIP 54487 (Tomahawk, WI) in the context of purchasing properties for Section 8 investment would look like this:
1) Does FMR $970 (zip FY 2024) clear debt service on a $281,774 property?
If the landlord can secure financing at a rate that allows the FMR of $970 per month to cover the total debt service, including principal, interest, taxes, and insurance, then the answer is yes. To determine this, calculate the monthly debt service based on the mortgage terms. For example, if the mortgage has an interest rate of 4% and a term of 30 years, the monthly payment on a $281,774 loan would be approximately $1,360. This amount must be compared against the $970 FMR to see if it is sufficient.
2) Is market rent $577 (Census ACS) above, at, or below FMR?
The market rent of $577 is below the FMR of $970. This means that the rental income from a Section 8 tenant would exceed the typical market rent. Landlords should consider this a positive factor as it indicates that they could potentially receive higher guaranteed income compared to what they might get from non-subsidized tenants.
3) Are 12.1% renters + N/A-day DOM enough demand?
The percentage of renters in ZIP 54487 is 12.1%, which suggests a moderate level of demand for rental housing. However, the absence of data on days on market (DOM) makes it difficult to assess the speed at which rental units are filled. Despite this lack of data, the presence of Section 8 tenants willing to pay up to $970 per month can be considered a stable source of demand. Therefore, the answer to this question is "it depends." If the landlord is comfortable with a moderate level of demand and understands that the presence of Section 8 can provide a steady stream of tenants, then the answer leans towards yes. Otherwise, if the landlord requires a high turnover rate, the answer may be no due to insufficient data on DOM.
Note: The decision to invest in ZIP 54487 for Section 8 purposes ultimately hinges on the ability to finance the property at a rate where the FMR covers the debt service, the fact that market rents are below FMR, and the landlord's tolerance for the unknown regarding DOM.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.