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 | $270,321 | 0.41% | F |
| 3BR | $1,530 | $352,285 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 54873, located in Solon Springs, WI, within the Douglas County and Bayfield County metro area, reveals key insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) as defined by HUD for this region in fiscal year 2024 is set at $980. This figure represents the maximum amount that landlords can charge for rental properties participating in the Section 8 program.
In contrast, the market rent based on Census ACS data stands at $785. This discrepancy between the HUD FMR and the actual market rent suggests that voucher tenants will generally cashflow positively at the FMR rate, providing a significant buffer for landlords. However, it's important to note that this positive cashflow scenario is contingent upon the landlord's ability to secure rents at the HUD FMR level, which may require maintaining higher-quality units or offering additional amenities.
To further understand the investment potential, consider the median home value in the area, which is $289,115. Using this figure, we can derive a rent-to-price ratio by dividing the market rent ($785) by the median home value. This calculation yields a ratio of approximately 0.27%, indicating that rental income constitutes a relatively small portion of the total property value. This metric is useful for investors comparing the relative attractiveness of renting versus buying in the area.
The dynamics of rent versus buy in this market do not significantly impact the decision-making process due to the lack of specific data on median days on market (DOM) and the percentage of price cuts. However, the positive cashflow potential derived from the HUD FMR being higher than the market rent is a strong indicator of financial stability for Section 8 investments.
The strongest angle for investors in this market is cashflow. With the HUD FMR exceeding the current market rent, landlords can expect a steady and reliable source of income, making this area particularly attractive for those seeking stable rental returns.
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.