Location: Trempealeau County, WI | Metro: Trempealeau County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 54760 reveals some interesting insights into potential investment opportunities. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area, as of fiscal year 2026, is set at $970 per month. This annualizes to $11,640, providing a baseline for what Section 8 tenants can be expected to pay. On the other hand, the market rent for a similar unit stands at $700 per month, equating to an annual market rent of $8,400.
To calculate the implied gross yield for these two scenarios, we need to consider the median home value in ZIP 54760. However, the median home value is not available for this area, which complicates the direct calculation of a cap rate. Despite this, we can still provide a comparative perspective based on the available data.
In the scenario where a property owner relies solely on Section 8 payments, the implied gross yield would be based on the $11,640 annualized income. In contrast, if the property were rented at market rates, the implied gross yield would be based on the $8,400 annualized income. These figures suggest that the Section 8 scenario offers a higher annual rental income, but without the median home value, we cannot determine the exact cap rate.
Given the 37.3% renter density in ZIP 54760, it's important to note that there is a significant portion of the population who are likely to be renters. This indicates a reasonable demand for rental properties, including those that might participate in the Section 8 program. The Days on Market (DOM) figure is not applicable here, as it pertains to the time it takes to sell a property rather than rent it out. Therefore, while the DOM is not provided, the high annualized FMR suggests that Section 8 could offer a stable and potentially higher gross yield compared to market rents.
For landlords and small-portfolio investors, the decision to participate in the Section 8 program versus renting at market rates should be made considering the stability of income and the potential for lower vacancy rates. While the market rent of $700 provides a lower annual income, it may also come with less administrative overhead associated with the Section 8 program. The choice between these two scenarios depends on the investor's risk tolerance and preference for steady income over potentially higher returns.
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.