Location: Eau Claire, WI | Metro: Eau Claire, WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,110 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
U.S. Census Bureau data (2024)
ZIP 54742, located within the Eau Claire, WI MSA metro, can be a valuable component of a Section 8 portfolio strategy, particularly as a cash-flow anchor. The Fair Market Rent (FMR) for FY 2024 is set at $1020, which is below the current market rent of $1,071. This means that landlords can secure tenants through the Section 8 program while still maintaining positive cash flow, albeit slightly less than what the market might offer.
The median home value in ZIP 54742 stands at $359,595, indicating a stable housing market. However, the primary focus for Section 8 landlords should be on the rental aspect, where the $51 difference between the FMR and market rent provides a buffer. Landlords can leverage this spread to cover operational costs and maintain profitability without relying solely on market rents.
While the ZIP code does not offer significant potential for appreciation plays, with no percentage increase in price-cut share and no reduction in days on market (DOM), it still serves a strategic purpose. The 13.8% renter share and median income of $102,083 suggest a moderate level of demand for rental properties, balanced by the financial stability of residents. This makes ZIP 54742 a reliable choice for landlords looking to ensure consistent cash flow, especially when paired with other investment strategies targeting appreciation or diversification.
In summary, ZIP 54742 is best suited as a cash-flow anchor in a Section 8 portfolio. The $51 gap between the FMR and market rent allows landlords to manage their properties effectively while ensuring steady income, making it an essential part of a well-rounded investment strategy.
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.