Location: Trempealeau County, WI | Metro: La Crosse-Onalaska, WI-MN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
U.S. Census Bureau data (2024)
The ZIP code 54642, located in Melrose, Wisconsin, presents a unique blend of yield and stability characteristics that can inform investment decisions. On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,130, significantly higher than the market rent of $872. However, this must be weighed against the median home value of $253,024, which suggests a moderate investment cost.
The stability axis reveals a less robust picture. Only 15.9% of residents are renters, indicating a primarily owner-occupied market. The lack of data on days on market (DOM) implies potential inefficiencies in the local real estate transaction process. Additionally, the median household income of $73,452 provides a context for the economic health of the area, but it does not directly correlate to high rental demand.
Analyzing these figures, ZIP 54642 appears to be neither a high-yield/low-stability flip-style market nor a steady-cashflow zone. Instead, it represents a middle ground where the potential for rental income exists, but the overall market stability is compromised by low renter occupancy and uncertain transaction dynamics. The discrepancy between FMR and market rent also hints at opportunities for landlords who can effectively manage their properties to attract tenants willing to pay closer to the FMR.
Investors should approach ZIP 54642 with a nuanced strategy, considering both the rental yield potential and the challenges posed by the local market's stability issues. A focus on property management excellence and tenant attraction could maximize returns while mitigating risks associated with the lower percentage of renters and unclear DOM figures.
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.