Section 8 Fair Market Rent (FMR) for ZIP 54703 - 2027

Investment Score for ZIP 54703

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,030
1 Bedroom	$1,030
2 Bedrooms	$1,280
3 Bedrooms	$1,720
4 Bedrooms	$1,730
5 Bedrooms	$2,007
6 Bedrooms	$2,248
7 Bedrooms	$2,428
8 Bedrooms	$2,549

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,030	$197,856	0.52%	F
2BR	$1,280	$231,931	0.55%	F
3BR	$1,720	$286,535	0.6%	D
4BR	$1,730	$333,287	0.52%	F
5BR	$2,007	$368,997	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 54703 (Eau Claire, WI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 54703 is set by HUD for the year 2026. The FMRs are as follows: - 0BR: $950 - 1BR: $980 - 2BR: $1210 (which is 20.3% of the median household income) - 3BR: $1620 - 4BR: $1630 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rental market in Eau Claire, WI, appears to be significantly higher than these FMRs. For instance, the Zillow median price for a 2BR property is $226,746, which translates into a monthly mortgage payment that would likely exceed the FMRs. The price-to-FMR ratio of 15.6x indicates that the median home value is much higher than the rent that voucher holders can afford. This suggests that landlords who want to participate in the Section 8 program must accept lower rents than what the market might otherwise bear. Given that 38.4% of the population are renters, there is a significant demand for affordable housing. However, the constraints imposed by the FMR mean that voucher holders have limited options. Landlords who choose to participate in the Section 8 program must ensure their rents do not exceed the FMRs, which can be challenging given the high median home values. #### Affordability & Renter Profile The median household income in ZIP code 54703 is $71,518. With 38.4% of the population being renters, the affordability of housing is a critical issue. The FMR for a 2BR unit is $1210, which is only 20.3% of the median income. This implies that a significant portion of the population can afford to live in 2BR units without needing assistance, but those relying on Section 8 vouchers will find it difficult to secure housing that meets their needs. The occupancy rate of 95.4% indicates a relatively tight rental market. This means that there is little vacancy, and competition for available units is high. Given the high proportion of renters and the tight market, landlords have some leverage to charge rents above the FMRs, although they risk losing potential tenants who rely solely on Section 8 vouchers. #### Investor Angle From an investor perspective, the key question is whether properties can generate positive cash flow at the FMRs. Given the high median home values, the cost of acquiring and maintaining properties is likely substantial. For example, a 2BR property priced at $226,746 would typically require a mortgage payment well above $1210 per month. Even if we consider a conservative estimate of a 4% interest rate and a 20% down payment, the monthly mortgage payment alone would be around $1000, leaving little room for profit after factoring in maintenance, insurance, and other expenses. The investment grade for this ZIP code would be considered low due to the high acquisition costs relative to the FMRs. Investors looking to participate in the Section 8 program would need to carefully evaluate the financial feasibility of their investments, ensuring that they can cover all costs while still remaining within the FMR limits. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR properties where the gap between market rents and FMRs is less pronounced. For instance, a 1BR unit with an FMR of $980 could potentially be more financially viable compared to a 2BR unit with an FMR of $1210. 2. **Consider Location and Amenities**: To attract voucher holders, investors should consider properties in desirable locations with good amenities. This can help justify slightly higher rents while still staying within the FMR limits. Additionally, properties that offer energy-efficient features or are located near public transportation can command a premium and still be within reach of voucher holders. 3. **Evaluate Long-Term Potential**: While the immediate cash flow might be negative, investors should also consider the long-term potential of the area. If there is growth in the local economy or an increase in the number of voucher holders, the demand for affordable housing could rise, leading to improved financial performance over time. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 54703 is to **Skip**. The high median home values and the tight rental market make it challenging to achieve positive cash flow at the FMRs. While there is a significant demand for affordable housing, the constraints imposed by the FMRs limit the profitability of properties in this ZIP code. Investors might find better opportunities in areas with lower median home values and more flexible rental markets.

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.