Location: Monroe County, WI | Metro: La Crosse-Onalaska, WI-MN HUD Metro FMR Area
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 | $730 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $222,250 | 0.47% | F |
| 3BR | $1,370 | $285,113 | 0.48% | F |
| 4BR | $1,720 | $343,164 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 54656, located in Sparta, WI, is situated within the broader context of Monroe County, WI. To understand its position relative to other ZIP codes in the county, we must examine its Federal Market Rent (FMR) of $1090 for fiscal year 2024, alongside its market rent of $938, median home value of $272,480, and a renter share of 26.9%.
When comparing these figures to typical ZIP codes within Monroe County, it's evident that ZIP 54656 presents a unique scenario. The FMR of $1090 is notably higher than the market rent of $938. This suggests that the area is somewhat subsidized for low-income renters, making it attractive for those eligible for Section 8 housing assistance.
The median home value of $272,480 places ZIP 54656 at a mid-tier level compared to other ZIP codes in the county. However, the combination of a relatively high renter share and lower-than-average home values can indicate that it serves as a value pocket for landlords and small-portfolio investors. This is particularly true given the disparity between the FMR and the actual market rent, which could mean that landlords might benefit from the subsidy while still renting out properties at a competitive price.
Additionally, the high renter share of 26.9% indicates a significant portion of the population relies on rental housing, including potentially those receiving Section 8 assistance. This makes ZIP 54656 a strategic location for investors looking to tap into government-subsidized rental markets without the premium costs associated with owning in areas with higher home values.
In conclusion, ZIP 54656 appears to be a value pocket within the Monroe County, WI metro. Its characteristics align well with the interests of landlords and small-portfolio investors who seek to leverage the benefits of Section 8 subsidies while maintaining a reasonable investment cost.
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.