Location: Sawyer County, WI | Metro: Sawyer County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 54828 reveals some interesting dynamics when comparing the Federal Market Rent (FMR) and the market rent figures. For a two-bedroom apartment, the annualized FMR is $1,050, while the Census ACS market rent figure stands at $578.
Given these figures, let's break down the gross yield for each scenario. The FMR scenario implies a higher gross yield due to the significantly higher rental income. However, it's important to note that the median home value is not available, which complicates a direct comparison between rental income and property value. This lack of data suggests that any valuation based solely on rental income must be approached with caution.
Despite the missing median home value, we can still derive meaningful insights. The FMR of $1,050 annually suggests a potential gross yield that could be attractive to investors looking for stable long-term returns. In contrast, the market rent of $578 annually indicates a lower gross yield, reflecting the current local rental market conditions.
The 24.4% renter density in ZIP 54828 provides context for the demand side of the equation. A relatively low renter density might imply less competition among tenants, potentially making the FMR a more reliable indicator of achievable rental income. On the other hand, the number of days on market (DOM) being not available means we cannot assess how quickly properties are rented out, which is crucial for understanding the speed at which rental income can be realized.
In summary, the FMR scenario offers a higher gross yield, but its applicability depends heavily on the willingness of local landlords to participate in the Section 8 program and the availability of units for such tenants. The market rent figure, while lower, reflects the current reality of the rental market in ZIP 54828. Investors should consider both scenarios carefully, factoring in the specifics of their portfolio and the local housing market dynamics.
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.