Section 8 Fair Market Rent (FMR) for ZIP 54601 - 2027

Investment Score for ZIP 54601

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$970
1 Bedroom	$1,070
2 Bedrooms	$1,400
3 Bedrooms	$1,790
4 Bedrooms	$2,260
5 Bedrooms	$2,622
6 Bedrooms	$2,937
7 Bedrooms	$3,172
8 Bedrooms	$3,331

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,070	$183,715	0.58%	F
2BR	$1,400	$236,275	0.59%	F
3BR	$1,790	$287,472	0.62%	D
4BR	$2,260	$338,759	0.67%	D
5BR	$2,622	$405,231	0.65%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 54601 (La Crosse, WI) #### Section 8 Voucher Dynamics In ZIP code 54601, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1,180 per month for 2026. This figure represents 23.0% of the median household income of $61,639. However, the actual median rent for a two-bedroom unit on Zillow is $225,706, which translates to approximately $1,881 per month based on a typical mortgage payment (assuming a 30-year fixed-rate mortgage at 4.5%). The price-to-FMR ratio for a two-bedroom unit is 15.9x, indicating that actual rents are significantly higher than the FMR. For voucher holders, this means that finding affordable housing within the FMR limits can be challenging, especially given the high actual rent prices. The constraints for voucher holders include limited options, as landlords may prefer higher-paying tenants who do not require vouchers. #### Affordability & Renter Profile The renter population in ZIP 54601 constitutes 46.0% of the total population, which stands at 50,397. With a median household income of $61,639, renters in this area are likely to be middle-class families, young professionals, and students. The occupancy rate of 94.7% suggests that the rental market is relatively tight, with few vacancies available. Given the high actual rent prices compared to the FMR, it is clear that the market is not oversupplied; rather, it is competitive, with many potential renters struggling to find affordable housing. #### Investor Angle From an investor perspective, the ZIP code 54601 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1,180, while the actual median rent is around $1,881. This discrepancy indicates that properties rented at FMR levels would likely generate lower cash flows compared to the market average. However, there is still demand for affordable housing, particularly among low-income households who rely on Section 8 vouchers. The investment grade in this market would be moderate due to the tight rental market and the potential for rental increases over time, but the initial cash flow might be lower than expected. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring units that are priced closer to the FMR levels. For instance, a two-bedroom unit priced at $1,180 would be more attractive to voucher holders and could ensure steady tenancy. However, this strategy may result in lower immediate returns. 2. **Consider Property Upgrades**: Given the high price-to-FMR ratio, investors might consider purchasing slightly below-market properties and upgrading them to increase their value and attract higher-paying tenants. This could involve minor renovations or improvements that make the property more desirable, thereby justifying higher rent prices. 3. **Explore Multi-Family Properties**: Multi-family properties often offer better economies of scale and can provide a more stable cash flow. A three-bedroom unit with an FMR of $1,530 could potentially be rented out for closer to the actual market rate of around $1,881, providing a more balanced investment opportunity. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 54601 is to **Hold**. While the market offers some opportunities, the high actual rent prices relative to FMR suggest that immediate cash flow might be lower than desired. However, the strong demand for affordable housing and the moderate occupancy rates indicate that there is a solid foundation for long-term investments. Investors should carefully evaluate the balance between FMR pricing and market realities before making any purchase decisions.

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.