Location: Taylor County, WI | Metro: Clark County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 54498 provides a clear picture of the potential returns for landlords and small-portfolio investors. Using the annualized Fair Market Rent (FMR) for a two-bedroom apartment at $1,110 per month (FY 2026, metro), the implied gross yield for a property rented under Section 8 would be approximately 5.97%. This calculation is derived by multiplying the monthly FMR by 12 months and dividing by the median home value of $219,233.
In contrast, using the market rent figure of $919 per month (from Census ACS), the implied gross yield drops significantly to about 5.03%. This is calculated similarly by annualizing the market rent and comparing it to the median home value.
The lower gross yield based on market rent reflects the reality that properties rented under market conditions often command higher rents compared to those rented through Section 8. However, the decision between these two yields should also consider the local rental market dynamics.
ZIP 54498 has a renter density of 21.0%, indicating a relatively low proportion of residents who rent their homes. This suggests that the demand for rental properties, including those under Section 8, might be limited. Additionally, the lack of data on the Days on Market (DOM) for rentals makes it challenging to assess how quickly a Section 8 property could be leased.
Given the data, the 5.97% gross yield from Section 8 is more stable and predictable, though it is lower than what might be achieved through market renting. The 5.03% gross yield from market renting, while higher, carries the risk of longer vacancy periods due to the limited renter population and uncertain leasing speed. Therefore, for those seeking steady cash flow and lower vacancy risks, the Section 8 option presents a more reliable scenario despite the lower gross yield.
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.