Location: Richland County, WI | Metro: Vernon County, WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
A skeptical investor considering real estate investments in ZIP code 54634 might have several concerns, which we can address using 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 $231,351. To put this into perspective, let's consider the average mortgage payment for a home in this price range. Assuming a typical 30-year fixed-rate mortgage with an interest rate around 4%, the monthly mortgage payment would be approximately $1,120. This amount exceeds the FMR by $150, indicating that relying solely on FMR might not fully cover the mortgage costs. However, it's important to note that property taxes, insurance, and other expenses must also be factored in when assessing the overall financial viability of the investment.
The second concern is the level of renter demand, given that only 22.2% of households in ZIP 54634 are renters. While this percentage suggests that a significant portion of the population owns their homes, it does not necessarily mean that there is insufficient demand for rental properties. In fact, the percentage of renters can provide a stable base of potential tenants. Additionally, the percentage of renters could increase over time due to various factors such as economic changes or shifts in population demographics. The key here is to understand the local rental market dynamics and identify any trends that could affect future demand.
The final objection pertains to the ability of housing vouchers to keep pace with market rents, which currently stand at $795. While the voucher system aims to support low-income families, the actual amount received may not always align with market conditions. It's crucial to examine the historical trend of voucher amounts versus market rents in ZIP 54634. If the gap between voucher amounts and market rents has been widening, this could pose a risk to investors. Conversely, if the voucher program has historically kept up with inflation and rent increases, the risk may be lower. Unfortunately, the data provided does not offer a direct comparison of past voucher amounts to market rents, so this aspect requires further investigation.
In summary, while the FMR may not entirely cover the mortgage on a $231,351 home, the percentage of renters indicates a stable tenant pool. As for housing vouchers, their ability to meet market rents needs closer scrutiny, but the current data does not provide a definitive answer. Investors should conduct additional research to fully understand the risks and opportunities in ZIP 54634.
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.