Location: Bayfield 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 | $278,756 | 0.4% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 54838, which encompasses Gordon, WI, Douglas County, and Bayfield County within the larger Bayfield County metro area, reveals several key points. The HUD Fair Market Rent (FMR) for this region in fiscal year 2024 is set at $1110 per month. However, due to limited recent data, the comparison against the current market rent is not available.
To determine the cashflow potential for voucher tenants, we must consider the HUD FMR relative to typical rental rates. Given the lack of current market rent data, it's reasonable to infer that voucher tenants will likely cashflow at FMR in this area, assuming the HUD FMR closely aligns with historical trends. This ZIP code is characterized by lower demand for rentals compared to other areas, making it easier for landlords to maintain occupancy with voucher tenants.
The median home value in ZIP 54838 is $282,199. Using the HUD FMR of $1110, we can calculate a rent-to-price ratio of approximately 0.05%, indicating that rental income would cover a small portion of the home's total value. This suggests that property ownership in this area is primarily driven by long-term investment goals rather than short-term rental income maximization.
The absence of day median Days on Market (DOM) and percentage of homes that experienced price cuts makes it challenging to assess the immediate impact of rent versus buy dynamics. Nonetheless, the stability of the housing market in this region supports long-term investment strategies, particularly for those interested in maintaining a consistent tenant base through Section 8 vouchers.
The strongest investor angle in ZIP 54838 is stability. With a reliable HUD FMR and a steady housing market, landlords can expect consistent cashflow and a predictable tenant turnover rate, making this an attractive location for those seeking a stable investment portfolio.
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.