Location: Bayfield County, WI | Metro: Ashland County, WI
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $168,331 | 0.64% | D |
| 3BR | $1,460 | $221,843 | 0.66% | D |
| 4BR | $1,590 | $243,582 | 0.65% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 54806, encompassing Ashland, WI, and the broader Bayfield County metro area, does not align favorably with federal guidelines. The Fair Market Rent (FMR) set at $1,020 for fiscal year 2026 significantly exceeds the current market rent of $763 as reported by the Census Bureau's American Community Survey. This discrepancy suggests that landlords might struggle to find tenants willing to pay the FMR, thus impacting profitability.
Regarding property acquisition, the median home value stands at $198,263. However, the lack of data on days on market (DOM) and the unusually low 0.1% price-cut share indicate a stable housing market. Despite the absence of DOM data, the low percentage of homes requiring price reductions points to a favorable environment for acquiring properties without significant discounting.
Tenant demand appears to be moderate but present. With a total population of 11,704, the 29.1% renter share translates to approximately 3,407 potential renters. While this number is not exceptionally high, it does suggest a steady pool of tenants looking for rental properties in the area.
Verdict: The rent math in ZIP 54806 is challenging due to the substantial gap between the FMR and the actual market rent. Acquisition costs are reasonable, given the median home value, but the lack of DOM data introduces some uncertainty. Tenant demand exists, though it is not overwhelming. Landlords should carefully consider their pricing strategies to balance between the FMR and market rates to ensure occupancy and profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.