Location: Barron County, WI | Metro: Barron County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
When evaluating whether to invest in ZIP code 54805 for Section 8 properties, follow this decision tree:
1) Does FMR $970 (metro FY 2026) clear debt service on a $239,923 property?
No. The Fair Market Rent (FMR) of $970 does not cover the debt service on a $239,923 property. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the property value, these costs would likely exceed $970 per month, making it financially unviable without additional income sources or subsidies.
2) Is market rent $748 (Census ACS) above, at, or below FMR?
Below FMR. The market rent of $748 is below the FMR of $970. This indicates that tenants receiving Section 8 vouchers could afford the rental costs, which is positive for maintaining occupancy rates. However, the gap between market rent and FMR also suggests limited upside potential for increasing rents beyond what is covered by vouchers.
3) Are 23.8% renters + N/A-day DOM enough demand?
It depends. With 23.8% of residents being renters, there is a moderate level of rental demand. However, the lack of data on days on the market (DOM) makes it difficult to assess how quickly properties are rented out. If the area has a low DOM, it implies strong demand and quicker turnover, which can be beneficial for landlords. Conversely, if the DOM is high, it could indicate a challenging market where properties take longer to rent, leading to potential vacancies and lost income.
Decision:
If the answer to question 1 is no, then the investment in ZIP 54805 is not advisable unless the landlord can secure additional income streams or subsidies to bridge the gap between FMR and debt service.
If the market rent is below FMR, as in this case, it is feasible to attract Section 8 tenants, but the landlord must be prepared for lower rental income compared to the FMR.
The demand assessment hinges on the DOM data. Without this information, the decision is uncertain. Landlords should seek local real estate agents or market reports to get an accurate picture of rental demand and vacancy rates.
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.