Location: Monroe County, WI | Metro: Monroe County, WI
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 | $840 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $191,139 | 0.55% | F |
| 3BR | $1,400 | $269,948 | 0.52% | F |
| 4BR | $1,480 | $313,290 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 54660, located in Tomah, WI, presents an interesting scenario when viewed from a renter's perspective. The median income in this area stands at $61,186, which is crucial for understanding the financial landscape for potential tenants. Given the market rate for rent, known as the Zillow Observed Rent Index (ZORI), at $1,053, it becomes evident that housing costs represent a significant portion of the average household's budget.
To put this into perspective, let's compare the ZORI to the Fair Market Rent (FMR) standards set by the U.S. Department of Housing and Urban Development (HUD) for the metro area in fiscal year 2026, which is $1,050. This means that the market rate is nearly identical to the voucher payment standard, leaving little room for variation between voucher and cash-paying tenants.
In Tomah, WI, approximately 33.5% of the 16,124 population are renters. This indicates a substantial demand for rental properties, but also suggests a competitive environment where landlords must offer attractive terms to attract tenants. The affordability gap, however, poses a challenge for many households, especially those relying on vouchers to cover their rent.
For landlords considering whether to accept Section 8 vouchers or focus solely on cash-paying tenants, the data points to a balanced strategy. Since the ZORI and FMR are almost the same, there isn't a significant difference in rental income between voucher and cash-paying tenants. However, landlords should be aware that the competition for rental properties is high, and offering affordable options might help secure long-term, stable tenancy.
The takeaway for landlords is that while accepting Section 8 vouchers may not provide a higher immediate return compared to cash-paying tenants, it can be a viable option to ensure occupancy rates remain steady in a competitive market. Additionally, the stability and support provided by government-backed payments can offer peace of mind regarding consistent rent collection.
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.