Location: Dunn County, WI | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,120 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 54740 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1270 for fiscal year 2024. This SAFMR specifically applies to this ZIP code, reflecting localized rental market conditions. In contrast, the local market rent for a similar unit, according to Census ACS data, is $860.
A landlord participating in the Section 8 program receives reimbursement from the government for a portion of the rent paid by tenants. Here's a breakdown of how it works:
The total rent for a two-bedroom unit can be up to the SAFMR of $1270. Tenants are required to pay 30% of their adjusted income towards rent. For example, if a tenant has an adjusted income of $1000 per month, they would pay $300 toward rent. The remainder, up to the SAFMR, is covered by the Section 8 voucher.
In addition to covering part of the rent, the voucher also includes utility allowances. These allowances vary but are designed to help cover the cost of utilities, such as electricity, gas, water, and sewage. The exact amount depends on the specific circumstances and can be determined by the local housing authority.
To illustrate, if the total rent is $1270 and the tenant pays $300, the voucher would cover the remaining $970. If there is a utility allowance of $200, the landlord would receive $1170 ($970 for rent plus $200 for utilities).
However, given that the local market rent is $860, landlords should expect a reimbursement gap. The gap is calculated by subtracting the local market rent from the SAFMR. In ZIP 54740, the gap for a two-bedroom unit is $410 ($1270 - $860).
This means that while the maximum allowable rent under Section 8 is $1270, the actual market value is $860, leaving a potential shortfall for landlords who might have to adjust their expectations or seek other forms of financial assistance to make up the difference.
In summary, for a two-bedroom apartment in ZIP 54740, the SAFMR is $1270, the local market rent is $860, and the typical reimbursement gap is $410.
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.