Location: Pepin 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 Section 8 housing market in ZIP code 54759, located in Pepin County, WI, presents an opportunity for investors to generate positive cash flow. The Fair Market Rent (FMR) set by HUD for this area is $1270 for the fiscal year 2024. This amount represents the maximum monthly payment that can be made by the Housing Choice Voucher program for rental units. In comparison, the market rent based on Census ACS data is significantly lower at $910 per month.
Voucher tenants in ZIP 54759 will cashflow positively at the HUD FMR rate, as the FMR is substantially higher than the current market rent. This means that landlords who accept vouchers can expect to receive a higher monthly rental income compared to what they would typically get from market-rate tenants.
The median home value in this ZIP code is $270,295. To derive the rent-to-price ratio, we can use the market rent figure of $910. This results in a ratio of approximately 4.2%, which is calculated by dividing the annual rent ($910 * 12) by the median home value ($270,295). A low rent-to-price ratio suggests that rental income alone may not cover the cost of ownership for many properties, making it less attractive for buy-and-rent strategies.
Note that the median Days on Market (DOM) and the percentage of homes that experienced price cuts are not available for this ZIP code. However, these metrics are generally important for understanding the local real estate market's health and the balance between renting and buying. In their absence, the primary focus should remain on the cash flow potential provided by the HUD FMR versus the actual market rent.
The strongest investor angle in ZIP 54759 is cashflow. Given the disparity between the HUD FMR and the current market rent, landlords accepting vouchers will benefit from higher monthly incomes, providing a solid financial foundation for their investment properties.
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.