Location: Polk County, WI | Metro: Burnett 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 | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $232,189 | 0.43% | F |
| 3BR | $1,300 | $290,781 | 0.45% | F |
U.S. Census Bureau data (2024)
ZIP code 54837, located in Frederic, Wisconsin, is characterized by a modest-sized community of 3,803 residents, where 16.1% of the population are renters. The area enjoys a relatively high median household income of $71,010, which places it above the national average. This affluence is further reflected in the median home value, which stands at $257,841, indicating a stable and affluent residential environment.
The rent economics in Frederic paint an interesting picture. According to the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development for the fiscal year 2026, the FMR for ZIP 54837 is $1,000. In contrast, the market rent, as reported by the Census Bureau's American Community Survey (ACS), is significantly lower at $763. This disparity suggests a potential opportunity for landlords who can leverage the higher voucher rates to increase their rental income while maintaining affordability for tenants.
Given these conditions, ZIP 54837 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area offers a reliable source of income through Section 8 vouchers, with minimal tenant turnover risk due to the stability of the local economy. On the other hand, for hands-on investors looking to add value, there is room to improve property offerings and potentially capture a portion of the higher voucher rents, thereby increasing the overall profitability of their investment.
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.