Location: Trempealeau County, WI | Metro: Buffalo County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 54747 presents a unique opportunity for landlords and small-portfolio investors due to the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area is set at $1,000 per month for fiscal year 2026, while the Census ACS reports the market rent at $916. This creates a gap of $84 per unit, or 8.4%, favoring the FMR over the market rate.
Given that the FMR exceeds the market rent, properties in ZIP 54747 can be leveraged as a yield play for investors. Landlords who accept Section 8 vouchers will receive a higher guaranteed rental income than what they might achieve through open-market leasing. This scenario is particularly advantageous considering that 35.0% of residents in the area are renters, indicating a steady demand for affordable housing options.
The median home value in ZIP 54747 is $233,688, which provides a benchmark for property values in the region. Additionally, the median income of $70,820 suggests that many households may find it challenging to afford market-rate rents without assistance. By accepting voucher tenants, landlords ensure a stable source of income that is above the prevailing market rates, thus maximizing their investment yields.
However, it's important to note that while the FMR offers a higher rental rate, there can be additional costs associated with housing voucher tenants. These may include administrative burdens, compliance requirements, and potential delays in receiving payments. Despite these challenges, the financial benefits of receiving a higher rent compared to the market rate can outweigh these costs, making Section 8 properties in ZIP 54747 a strategic choice for investors looking to maximize returns.
In summary, the gap between the FMR and market rent in ZIP 54747 makes it a favorable environment for landlords and investors interested in a yield play. With 35.0% of residents renting and a median income of $70,820, the demand for affordable housing is high, and the Section 8 program offers a reliable way to secure higher rental incomes than those found in the open market.
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.