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)
To classify ZIP code 54761, we must consider both yield and stability metrics. The yield is determined by comparing the Fair Market Rent (FMR) for Section 8 at $1270 against the market rent of $792 for the fiscal year 2024. Given that the FMR exceeds the market rent, this indicates a potential for higher rental yields if properties are enrolled in the Section 8 program.
The median home value in ZIP 54761 stands at $259,301, which is an important figure when calculating the return on investment (ROI). If we assume a conservative estimate of 1% annual property tax, the tax cost would be approximately $2,593 per year. When considering the rental income, the difference between FMR and market rent suggests a potential additional income of $478 per month from enrolling in Section 8, leading to an extra $5,736 annually. This additional income can significantly boost ROI, especially when factoring in other expenses such as maintenance and insurance.
Moving to stability, the ZIP code has a 27.3% rate of renters, which is relatively low. A lower percentage of renters might suggest less demand for rentals, but it also implies that there could be opportunities to attract tenants through competitive pricing or quality improvements. The lack of data on days on market (DOM) makes it challenging to assess how quickly properties are rented out, but the average household income of $75,536 provides insight into the financial capability of residents to afford housing. This figure is crucial as it supports the ability of tenants to meet their monthly obligations, contributing to overall stability.
Based on these figures, ZIP 54761 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The significant gap between FMR and market rent offers a substantial incentive for landlords to enroll in Section 8, ensuring a stable cash flow. However, the lower percentage of renters and the absence of DOM data suggest that while the income stream is reliable, it may not be as volatile or quick-turnaround as a flip-style market would be. The combination of higher guaranteed rents and a moderate income level supports the idea that this area is suitable for those seeking consistent returns over time.
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.