Location: Vilas County, WI | Metro: Forest 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 | $810 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $323,613 | 0.34% | F |
| 3BR | $1,310 | $443,120 | 0.3% | F |
U.S. Census Bureau data (2024)
Eagle River, WI, located in ZIP code 54521, presents an interesting opportunity for real estate investment, particularly under the Section 8 program. However, it's essential to address the concerns that any prudent investor might have before committing to such an investment.
Objection 1: Will Fair Market Rent (FMR) of $1,060 for the metro area in fiscal year 2026 cover the mortgage on a $375,090 home?
The answer is nuanced. The FMR of $1,060 represents the maximum amount that HUD will pay for rental housing in Eagle River. To determine if this covers a mortgage, we must consider the interest rates and loan terms. Assuming a typical 30-year fixed-rate mortgage at a current average rate of around 6%, the monthly mortgage payment on a $375,090 home would be approximately $2,200. This clearly exceeds the FMR. However, investors should note that property values and mortgage rates can fluctuate, and additional income from other sources, such as property management fees, could help bridge the gap.
Objection 2: Is there enough renter demand at 16.3%?
The percentage of renter-occupied units in Eagle River stands at 16.3%. While this figure is lower compared to urban areas, it does not necessarily indicate a lack of demand. It's important to understand the local market dynamics. A smaller percentage of renters does not automatically mean low demand; it could also suggest a preference for homeownership. To accurately gauge demand, one would need to look at vacancy rates and the number of Section 8 households in the area. Unfortunately, the provided data does not include these specifics.
Objection 3: Will vouchers keep pace with market rents of $935?
The current market rent of $935 is below the FMR of $1,060, indicating that vouchers could potentially cover a significant portion of the rent. However, the question of whether voucher amounts will increase to match future market rents is crucial. Historically, HUD adjusts FMRs annually based on changes in housing costs. If housing costs in Eagle River rise, so too will the FMR. Investors must monitor these adjustments to ensure that they align with market rents. There is no guarantee that voucher amounts will always match or exceed market rents, but the trend suggests periodic increases to keep pace with inflation and cost of living adjustments.
In summary, while Eagle River offers opportunities under the Section 8 program, investors must carefully consider the financial aspects and local market conditions. The provided data gives a snapshot of the situation, but further research into local trends and market specifics is advisable to make informed decisions.
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.