Location: Washburn County, WI | Metro: Barron 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 | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $245,177 | 0.41% | F |
| 3BR | $1,320 | $293,213 | 0.45% | F |
| 4BR | $1,690 | $354,230 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 54868, which encompasses Rice Lake, WI, and parts of Barron County, can be analyzed using the SAFMR (Small Area Fair Market Rent) and local market rent data. For a two-bedroom apartment, the SAFMR for FY 2026 is set at $980. This figure represents the maximum amount a landlord can receive from the Section 8 program for a unit of this size in this specific ZIP code.
In contrast, the local market rent for a similar unit, based on Census ACS data, is $872. This means that without a voucher, the average rent charged for a two-bedroom property in this area is below the SAFMR threshold.
A voucher payment to a landlord consists of the difference between the SAFMR and the tenant's portion of the rent, plus any utility allowances. The tenant's portion is typically 30% of their income, which varies depending on the individual's financial situation. Utility allowances are additional payments made by the housing authority to cover the costs of utilities, such as electricity and water. These allowances are calculated separately and added to the base rent reimbursement.
To illustrate, if a tenant's portion of the rent is $294 (30% of an assumed income of $980), then the voucher would pay the landlord $686 ($980 - $294) for the base rent. If there is a utility allowance of $100, the total reimbursement would be $786. This example assumes the tenant's income aligns with the SAFMR, but it could be lower, depending on the tenant's actual income.
Given these numbers, landlords in ZIP 54868 who participate in the Section 8 program will generally see a reimbursement gap rather than a surplus. With a local market rent of $872 and a typical voucher reimbursement of around $786, landlords face a shortfall of approximately $86 per month for a two-bedroom unit. This gap exists because the local market rent is already below the SAFMR, and the tenant's portion further reduces the reimbursement amount.
Landlords should factor in this gap when considering whether to accept Section 8 tenants. While the program offers stable rental income and a reduced risk of unpaid rent, the economic reality in ZIP 54868 means that landlords must weigh the benefits against the potential reduction in monthly revenue compared to market rates.
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.