Location: Rusk County, WI | Metro: Rusk 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 | $730 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $163,670 | 0.62% | D |
| 3BR | $1,310 | $212,312 | 0.62% | D |
| 4BR | $1,340 | $253,132 | 0.53% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering the ZIP code 54848 (Ladysmith, WI) for their rental portfolio might have several concerns, which we will address using the available data.
Objection 1: Will Fair Market Rent (FMR) of $970 (metro FY 2026) cover the mortgage on a $178,064 home?
The FMR of $970 is a key figure when assessing rental income potential. To determine if it covers the mortgage, we need to consider the typical mortgage payments for a property valued at $178,064. Assuming a 30-year fixed-rate mortgage with an interest rate of 5%, the monthly payment would be approximately $950. This means that the FMR of $970 is just sufficient to cover the mortgage, leaving little room for additional expenses such as maintenance, insurance, and property taxes. Therefore, while the FMR does cover the mortgage, careful financial planning is necessary to ensure profitability.
Objection 2: Is there enough renter demand at 32.4%?
The 32.4% renter occupancy rate in Ladysmith suggests a moderate level of demand. However, this percentage alone does not provide a complete picture. It's essential to look at the number of renters and the vacancy rates. If the vacancy rate is low and the number of renters is stable or growing, then the 32.4% occupancy rate could be considered adequate. Conversely, if the vacancy rate is high or the number of renters is declining, this could indicate insufficient demand. The data provided does not specify the vacancy rate or trends in the number of renters, so further investigation into these metrics would be advisable.
Objection 3: Will vouchers keep pace with $883 market rents?
In Ladysmith, the voucher amount is expected to be around $970, which exceeds the current market rent of $883. This suggests that voucher holders can afford to pay the market rate, making them attractive tenants for landlords. However, it's important to note that the voucher amount is subject to change based on HUD guidelines and local housing authority policies. If future adjustments reduce the voucher amount below the market rent, it could impact the ability of voucher holders to afford housing. Given the current figures, vouchers do support market rents, but ongoing monitoring of any changes is recommended.
In summary, while the data shows that FMR can cover mortgage payments and that voucher amounts currently exceed market rents, the moderate renter occupancy rate requires a deeper dive into local rental market dynamics. Landlords and small-portfolio investors should use these figures as a starting point for their due diligence process.
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.