Location: Sawyer 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 | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $205,611 | 0.5% | F |
| 3BR | $1,240 | $224,528 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Park Falls, WI (ZIP 54552) might have several concerns regarding the viability of investing in properties that participate in the Section 8 program. Let's address these concerns directly using the available data.
The first objection is whether the Fair Market Rent (FMR) of $970 for the metro area in fiscal year 2026 will be sufficient to cover the mortgage on a home valued at $196,268. To determine this, we need to calculate the potential monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4.5%, the monthly mortgage payment would be approximately $985. This means that the FMR of $970 is slightly below the projected mortgage payment, indicating that Section 8 rents alone may not fully cover the mortgage cost. However, it's important to note that property taxes and insurance are additional expenses that must be considered, which could further reduce the margin between FMR and total housing costs.
The second concern revolves around the demand for rental properties. With only 19.7% of the population renting, some investors might question if there is enough demand for their Section 8 units. While the percentage seems low, it's crucial to understand the local rental market dynamics. A smaller percentage of renters does not necessarily mean insufficient demand; it could indicate a stable rental market with fewer turnovers and higher tenant retention rates. Additionally, the specific needs of the Section 8 population might create a niche market where demand remains steady despite the overall lower rental rate.
The third objection pertains to the adequacy of voucher payments compared to market rents. The average market rent is $805, while the FMR is set at $970. Vouchers are intended to cover the difference between what a family can afford and the FMR. If the market rents remain at $805, vouchers should adequately cover the gap. However, the challenge lies in ensuring that voucher payments will keep pace with any future increases in market rents. The data does not provide projections for voucher amounts beyond the FMR, so this aspect requires monitoring the local housing authority's policies and any adjustments they make to voucher levels in response to changing market conditions.
In summary, while the FMR of $970 may not fully cover the mortgage on a $196,268 home, the rental market in Park Falls, WI, appears stable with a steady demand for affordable housing. Vouchers are designed to support families up to the FMR level, but continuous tracking of market rent trends and voucher payment adjustments is necessary to ensure long-term financial sustainability for Section 8 landlords and small-portfolio investors.
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.