Location: Crawford County, WI | Metro: Vernon County, WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 54624 revolves around the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $970, while the Census ACS data indicates that the average market rent stands at $793. This represents a gap of $177, or approximately 18.25%, where the FMR exceeds the market rent.
This scenario makes ZIP 54624 an attractive yield play for landlords and small-portfolio investors. Voucher tenants, who benefit from the Section 8 program, can provide a steady stream of rental income that aligns closely with the higher FMR rather than the lower market rate. Given the local context of only 12.0% of residents being renters, it's evident that the rental market is relatively small, making the potential for higher yields through Section 8 vouchers particularly compelling.
The median home value in the area is $238,736, which suggests that homeownership is the predominant form of housing. However, the median household income of $81,518 indicates that a considerable portion of the population might struggle to afford homeownership, thereby increasing the reliance on rental properties, especially those supported by housing vouchers.
In this environment, landlords can leverage the Section 8 program to secure rental income that is closer to the FMR of $970, rather than accepting the lower market rate of $793. This not only helps in achieving better yields but also ensures a stable tenant base, reducing the risk of vacancy and default.
Moreover, the higher FMR compared to the market rent means that landlords can potentially charge rents that reflect the true economic value of their properties, without the need to undercut the market due to competition. This is particularly advantageous given the limited number of renters in the area, allowing landlords to command rents that are in line with the FMR and thus maximizing their investment returns.
To summarize, the gap between the FMR and the market rent in ZIP 54624 presents a unique opportunity for landlords and small-portfolio investors to achieve higher yields by participating in the Section 8 program. This strategy is further bolstered by the local context of low rental prevalence, high median home values, and moderate median incomes, all of which contribute to the attractiveness of securing voucher tenants.
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.