Location: Bayfield County, WI | Metro: Bayfield 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 | $720 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $296,273 | 0.35% | F |
| 3BR | $1,360 | $359,629 | 0.38% | F |
U.S. Census Bureau data (2024)
ZIP code 54847, located in Iron River, WI, within the Bayfield County, WI metro area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This ZIP code should be considered primarily as a cash-flow anchor.
The rationale for this classification is based on the financial metrics provided. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,050. In contrast, the current market rent for ZIP 54847 is $800. This indicates that landlords participating in the Section 8 program can expect to receive a higher rent subsidy than the typical market rate, thus providing a stable and predictable source of cash flow.
The median home value in ZIP 54847 is $290,675, which is relatively high compared to other areas in the region. However, this does not necessarily translate into high rental values due to the nature of the local economy and housing demand. Given the discrepancy between the FMR and the market rent, the difference of $250 per unit represents a significant cushion against potential market fluctuations.
While the ZIP code has a 20.5% renter share, indicating a moderate level of rental activity, the median income of $68,795 suggests that there is a sufficient economic base to support Section 8 tenants without significant risk of default. This makes it a reliable component of a diversified investment portfolio, but the primary benefit lies in its role as a cash-flow anchor.
To summarize, ZIP 54847 offers a solid foundation for a Section 8 portfolio due to the favorable spread between the FMR and market rent, ensuring steady and above-market cash flows. The economic stability and the presence of a reasonable number of renters further support its inclusion as an essential element for maintaining consistent returns.
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.