Location: Forest County, WI | Metro: Florence County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 54542, located in Forest County, WI, reveals several key points for potential Section 8 landlords and small-portfolio investors.
The rent math does not favorably align with the Federal Market Rent (FMR) of $1,050 for the fiscal year 2026. The current market rent, according to Census ACS data, stands at $808. This discrepancy means that landlords may face a shortfall if relying solely on Section 8 subsidies, which typically cover only up to the FMR, while market rents are lower. Landlords must consider additional sources of income or lower their expectations regarding rental income.
Regarding property acquisition, the median home value in ZIP 54542 is $152,135. This figure suggests that acquiring a property could be considered affordable for many investors, especially when compared against higher-value markets. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts indicates an incomplete picture of the local real estate market dynamics. Further investigation into these metrics would provide a clearer understanding of the ease and cost-effectiveness of property acquisitions.
Tenant demand in ZIP 54542 is moderate. With a total population of 702 and a renter share of 12.8%, the number of potential tenants is limited. This small pool of renters could impact the availability of qualified applicants, particularly those eligible for Section 8 housing. Landlords should prepare for potentially longer vacancy periods and a competitive environment for securing tenants.
Verdict: ZIP 54542 presents an opportunity for acquisition at a relatively low median home value. However, the mismatch between the FMR and market rent, combined with a limited tenant base, suggests that investing in this area requires careful consideration. Landlords should expect to operate with smaller profit margins and be prepared for challenges in finding and retaining qualified tenants. The overall investment climate is cautiously optimistic but demands a realistic approach to financial expectations and tenant management.
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.