Location: Richland County, WI | Metro: Vernon County, WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 54664 might raise several concerns regarding the viability of investing in Section 8 properties. Here are three common objections, along with the relevant data to address them.
Objection 1: Will the Fair Market Rent (FMR) of $1,120 for the metro area in fiscal year 2026 be sufficient to cover the mortgage on a $238,412 home?
The FMR of $1,120 is a guideline set by HUD and does not necessarily reflect the actual mortgage payments required. To determine if it covers the mortgage, we must consider the interest rate and loan terms. Assuming a typical fixed-rate mortgage at a 4% interest rate over 30 years, the monthly payment on a $238,412 home would be approximately $1,130. This means that the FMR is very close to covering the mortgage but falls slightly short. However, property taxes, insurance, and maintenance costs also need to be factored in, which could reduce profitability further.
Objection 2: Is there enough renter demand at 12.9%?
The 12.9% figure represents the percentage of households in ZIP 54664 that are renters. While this percentage indicates some level of demand, it's crucial to understand that it only reflects the current rental market share. The true measure of demand would require analyzing the number of available rental units versus the number of potential tenants seeking housing. The data provided does not give us this information, so we cannot definitively state whether there is enough demand based solely on the 12.9% statistic. It's important to research local vacancy rates and tenant turnover to gauge the strength of the rental market.
Objection 3: Will vouchers keep pace with market rents of $1,047?
The voucher amount is adjusted annually to reflect changes in the cost of living and market conditions. In ZIP 54664, the FMR of $1,120 is higher than the current market rent of $1,047, suggesting that voucher amounts are likely to be sufficient to cover the market rent. However, the data does not provide a forecast for future adjustments to voucher amounts. Therefore, while the current FMR suggests that vouchers will cover the market rent, long-term projections would require additional analysis of historical trends in voucher adjustments and local rent increases.
In summary, while the data provides useful insights into the financial aspects of investing in Section 8 properties in ZIP 54664, it is essential to conduct further research to address all investor concerns comprehensively.
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.