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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $294,261 | 0.38% | F |
| 3BR | $1,530 | $388,768 | 0.39% | F |
U.S. Census Bureau data (2024)
Minong, WI, located in ZIP code 54859, is a small community with a total population of 2,242. Only 17.1% of the residents are renters, indicating a primarily owner-occupied environment. The median household income stands at $55,882, reflecting a modest economic profile typical of rural Wisconsin. Median home values in the area are relatively high at $319,897, suggesting a stable housing market with a mix of middle-class and some higher-end properties.
The economic landscape shifts when considering rental dynamics. The Fair Market Rent (FMR) for ZIP 54859, set at $1,060 for fiscal year 2024, is notably higher than the actual market rent of $824, based on recent Census American Community Survey (ACS) data. This discrepancy presents an opportunity for investors interested in Section 8 housing, as the government-subsidized rents can potentially cover a larger portion of the costs associated with property management.
Given these factors, ZIP 54859 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR compared to market rent means a better chance of covering expenses and generating profit without needing to actively manage the property beyond ensuring compliance with Section 8 regulations. On the other hand, hands-on investors could focus on improving the quality of existing rental units to command closer to the FMR, thereby increasing their revenue per unit while providing better living conditions for tenants.
In conclusion, Minong's ZIP 54859 offers a niche investment opportunity within the Section 8 program. With a modest but stable local economy and a favorable gap between FMR and market rent, both passive and active investors can find a suitable strategy to maximize returns while contributing to the community.
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.