Location: Dunn County, WI | Metro: Eau Claire, WI MSA
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 | $870 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $290,008 | 0.5% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 54724 reveals interesting insights into potential investment returns. For a two-bedroom property, the Fair Market Rent (FMR) set by HUD for FY 2024 is $910 per month. When annualized, this translates to a rental income of $10,920 per year. The median home value in the area is $289,483, which implies a gross yield of approximately 3.78% when considering the FMR scenario.
In contrast, the market rent based on Census ACS data stands at $899 per month for a similar unit. This yields an annual rental income of $10,788. Using the same median home value, the gross yield drops slightly to 3.73%. These figures provide a baseline for understanding the potential gross income relative to the property's value under both government-subsidized and market conditions.
The renter density in ZIP 54724 is 19.1%, indicating a relatively low percentage of the population renting compared to owning homes. This factor suggests that finding tenants for Section 8 properties might be less challenging than in areas with higher renter populations. However, the absence of data regarding days on market (DOM) means we cannot directly assess how quickly properties are leased, which could impact the overall profitability and turnover rate of investments.
Given the slight edge in gross yield with the FMR scenario over the market rent scenario, it would be more prudent for investors to consider the FMR as a more stable and predictable income source. The difference, while small, can be significant in long-term investment strategies where consistent cash flow is prioritized. The lower renter density also supports the notion that the FMR scenario is more likely to attract tenants, ensuring a steady stream of rental income.
To conclude, the Section 8 cap-rate picture for ZIP 54724 leans towards a gross yield of around 3.78% when using the FMR of $910 per month for a two-bedroom unit. This is marginally higher than the 3.73% gross yield derived from the market rent of $899 per month. Investors should weigh these figures against their own criteria for acceptable risk and return.
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.