Location: Washburn County, WI | Metro: Duluth, MN-WI MSA
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 | $770 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,530 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $287,070 | 0.39% | F |
| 3BR | $1,530 | $361,690 | 0.42% | F |
U.S. Census Bureau data (2024)
A skeptical investor might raise several concerns regarding the real estate market in ZIP 54830 (Danbury, WI).
First, will Fair Market Rent (FMR) of $980 cover the mortgage on a $300,905 home? To answer this, consider the typical mortgage rates and terms. A 30-year fixed-rate mortgage at 5%, for instance, on a $300,905 property would result in monthly payments of approximately $1,625, including principal, interest, taxes, and insurance. The FMR of $980 falls short of covering these costs, suggesting that additional income sources or higher rents may be necessary.
Second, is there enough renter demand at 8.4%? The rental vacancy rate of 8.4% indicates a moderate level of demand. However, this percentage alone does not provide a complete picture. ZIP 54830 features a tranquil setting, which can attract certain demographics. The specific rental market dynamics, such as the number of renters versus homeowners, and the local economy's stability, should also be considered. Current listings suggest a mix of property types, but the data does not specify the exact rental market size.
Third, will vouchers keep pace with $839 market rents? The FMR is set at $980, which is above the market rent of $839. This suggests that voucher holders may find it easier to secure rental properties in this area. However, the actual distribution and adequacy of vouchers are not detailed in the available data. It is important to verify the local housing authority's policies and the historical trends of voucher amounts to ensure they align with the current market conditions.
In summary, while the FMR is insufficient to cover mortgage costs on a $300,905 home, the rental vacancy rate suggests a reasonable level of demand. Vouchers appear to be adequate relative to market rents, but further investigation into their availability and distribution is recommended.
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.