Location: Vilas County, WI | Metro: Iron 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 | $740 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $588,113 | 0.21% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 54538 presents a compelling opportunity for landlords and small-portfolio investors due to the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, set at $970 per month for fiscal year 2026, is notably higher than the average market rent reported by the Census ACS, which stands at $543. This creates a $427 difference, or an increase of approximately 78.6%, for those accepting Section 8 vouchers.
The disparity between these two figures means that voucher holders can significantly enhance a landlord's rental income. Given the local context where 27.8% of residents are renters and the median home value is $463,802, it's evident that there is a substantial demand for affordable housing. With a median income of $51,429, many renters struggle to find housing that fits their budget, making the Section 8 program particularly attractive to them.
In this scenario, landlords benefit from the higher FMR set by the government, which is designed to cover the cost of renting in the area. This makes the ZIP code a prime yield play, as landlords can receive a higher rent payment through the voucher system compared to the open-market rate. Moreover, the stability provided by the Section 8 program, with guaranteed rent payments from the government, reduces the risk of vacancy and non-payment.
However, it's important to note that while the FMR exceeds the market rent, landlords must still consider the administrative aspects of participating in the Section 8 program. These include regular inspections, adherence to property standards, and the potential for lower turnover rates among voucher holders. Despite these considerations, the financial benefits of closing the gap between the FMR and the actual market rent make this a strategic investment for those willing to engage with the program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.