Location: Barron 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 | $820 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,460 | $334,038 | 0.44% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 54822 provides valuable insights into potential investment opportunities for landlords and small-portfolio investors. To start, let's consider the Federal Market Rent (FMR) for a 2-bedroom apartment, which is set at $1,070 annually for fiscal year 2026, based on metro data. Using this figure, the annualized income would be $12,840. Given the median home value of $299,911 in this area, the implied gross yield from the Section 8 program would be approximately 4.3%. This calculation is derived by dividing the annual rental income by the property value.
On the other hand, the market rent for a 2-bedroom apartment is reported at $959 annually according to the Census ACS data. When annualized, this translates to $11,508 per year. Using the same median home value, the implied gross yield based on market rent would be about 3.8%. This figure is lower than the gross yield from the Section 8 program, indicating that Section 8 can offer a slightly higher return relative to the property value.
Given the 19.5% renter density in ZIP 54822, it's important to note that the number of days on market (DOM) is listed as N/A. This suggests there might be limited data on how quickly properties are rented out, which could impact the reliability of market rent figures. However, the higher gross yield from the Section 8 program makes it a more attractive option compared to market rent, especially considering the guaranteed income and reduced risk associated with government-backed rental assistance programs.
In conclusion, while both the Section 8 and market rent scenarios provide useful benchmarks, the higher gross yield of 4.3% from the Section 8 program stands out as a more realistic and favorable scenario for investors looking to maximize returns in ZIP 54822. The slight edge over market rent's 3.8% gross yield, combined with the stability offered by the program, presents a compelling case for participation in the Section 8 program for rental properties in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.