Location: Vilas County, WI | Metro: Oneida 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 | $890 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $342,094 | 0.32% | F |
| 3BR | $1,350 | $491,119 | 0.27% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 54548, located in Minocqua, Wisconsin, reveals a challenging investment scenario. To begin with, the annualized Fair Market Rent (FMR) for a 2-bedroom unit under the Section 8 program for fiscal year 2026 is set at $1,070. Given the median home value in the area is $409,046, this translates into an implied gross yield of approximately 3.1%. This calculation is based on the formula: (Annualized Rent / Median Home Value) * 100.
However, when considering the market rent, which stands at $962 according to the Census ACS, the implied gross yield drops significantly to about 2.8%. This difference highlights the potential gap between what the government is willing to pay through Section 8 vouchers and the actual market rates.
Given the 25.8% renter density in the area, it's important to note that there is a substantial portion of homeownership. This suggests that the demand for rental properties, including those participating in the Section 8 program, might be limited. The N/A-day DOM (Days on Market) indicates that either the data isn't available or there's a very quick turnover in rentals, which could imply strong local demand or an error in reporting.
In terms of realism, the market rent figure of $962 seems more plausible for assessing potential returns. While Section 8 provides a guaranteed income source, the lower gross yield and the relatively low renter density suggest that achieving a higher net operating income (NOI) through market rents may be more feasible. However, the security of a Section 8 contract cannot be overlooked, especially for those who prioritize stable cash flows over potentially higher yields.
To conclude, while the Section 8 scenario offers a gross yield of 3.1%, the market rent scenario presents a slightly lower gross yield of 2.8%. For investors, the choice between these two options should be made based on individual risk tolerance and investment goals, keeping in mind the unique characteristics of the Minocqua housing market.
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.