Location: Washburn County, WI | Metro: Barron 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 | $730 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $328,183 | 0.31% | F |
| 3BR | $1,240 | $454,582 | 0.27% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP code 54817, Birchwood, WI, can be analyzed using the Fair Market Rent (FMR) and market rent figures. For a two-bedroom apartment, the annualized FMR based on fiscal year 2026 is $970 multiplied by 12, equating to $11,640. The market rent figure from the Census ACS is $824 per month, which annualizes to $9,888.
To determine the gross yield, we divide these annual rents by the median home value of $342,133. Using the FMR, the gross yield is approximately 3.4% ($11,640 / $342,133). With the market rent, the gross yield drops to around 2.9% ($9,888 / $342,133).
The lower gross yield based on market rent suggests that it is more realistic for this area. The renter density in Birchwood, WI, stands at 11.6%, indicating a relatively low demand for rental properties compared to owner-occupied homes. Additionally, the N/A-day Days on Market (DOM) implies that there isn't a significant amount of data available regarding how quickly rental units are typically filled, which supports the idea that market conditions might be tighter, making the lower market rent figure more plausible.
Investors should consider these gross yields when evaluating potential returns on investment properties in ZIP 54817. While the FMR provides a benchmark, the actual market conditions, as reflected by the lower market rent, should be the primary focus for realistic expectations. This analysis shows a clear difference between the two scenarios, with the FMR yielding a higher but less likely gross income in this specific ZIP code.
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.