Location: Clark County, WI | Metro: Clark County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
U.S. Census Bureau data (2024)
In evaluating whether a landlord should purchase a property in ZIP code 54493 for Section 8 investment, follow this decision tree:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,300. This figure must be compared against the debt service on a property valued at $243,877. If the DSCR is less than 1, meaning that the FMR does not cover the debt service, then the answer is No. A DSCR greater than 1 indicates that the FMR can indeed cover the debt service, leading to a potential Yes.
Step 2: Market Rent vs. FMR
The Census American Community Survey (ACS) reports the average market rent in ZIP 54493 as $1,000. This is below the FMR of $1,300. If market rent is below FMR, it suggests that Section 8 tenants can afford the rent, making the answer to this step Yes. However, if market rent were above FMR, it would indicate that Section 8 might not be sufficient to cover the cost, leading to an It Depends scenario where other factors such as tenant subsidies or local housing policies need to be considered.
Step 3: Demand Analysis
The percentage of renters in ZIP 54493 is 7.9%, which is relatively low. The Days on Market (DOM) is listed as N/A, suggesting incomplete data or lack of recent transactions. With insufficient demand data, the answer is It Depends. Landlords will need to conduct further research into the local rental market trends and consider the stability and growth of the tenant base.
To summarize:
A landlord must ensure that the FMR can cover the debt service, assess the gap between market rent and FMR, and thoroughly investigate the demand for rental properties in ZIP 54493 before deciding to invest.
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.