Location: Price County, WI | Metro: Price 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 | $1,230 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,230 | $289,069 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 54555 reveals a nuanced picture for potential investments. To start, let's annualize the 2BR Fair Market Rent (FMR) and market rent figures against the median home value.
The annualized 2BR FMR at $1,000 per month amounts to $12,000 per year. Dividing this by the median home value of $221,699 yields an implied gross yield of approximately 5.4%. This calculation provides a theoretical upper limit for the rental income potential under the Section 8 program.
On the other hand, the market rent figure of $811 per month translates to $9,732 annually. When compared to the median home value, this results in an implied gross yield of roughly 4.4%. This scenario reflects the typical market conditions without the guarantee of the Section 8 program.
Given the 20.5% renter density in the area, it is important to note that a significant portion of the population may be seeking rental housing. However, the lack of specific Days on Market (DOM) data for rentals makes it challenging to predict how quickly a property could be leased under either scenario.
The higher gross yield of 5.4% associated with the Section 8 program suggests a more attractive investment opportunity in terms of rental income. However, this must be weighed against the potential drawbacks of the program, such as stricter tenant screening criteria and longer lease periods.
In contrast, the market rent scenario offers a slightly lower gross yield of 4.4%, but it may provide greater flexibility and quicker turnover rates, which can be advantageous for landlords and small-portfolio investors who prefer to manage properties actively.
To conclude, while the Section 8 program offers a higher gross yield, the market rent scenario is likely more realistic given the unspecified DOM and the need for active property management. Investors should consider these factors carefully when deciding on their investment strategy.
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.