Location: Washburn County, WI | Metro: Washburn County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 54888 are straightforward. The SAFMR (Standard Amount for Moderate Rehabilitation) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is set at $970. This is the maximum amount that the housing authority will pay for a unit of this size under the Section 8 program. In comparison, the local market rent for a similar unit, based on Census ACS data, averages around $768.
A voucher payment to a landlord consists of two parts: the tenant contribution and the housing authority subsidy. Tenants typically pay 30% of their adjusted income toward rent, which is then supplemented by the housing authority to meet the total rent up to the SAFMR limit.
To illustrate, if a tenant's monthly income is $1,000, they would contribute $300 toward rent. The housing authority would then cover the remaining balance up to the SAFMR cap. For a two-bedroom unit renting at $970, the housing authority would pay $670. If the unit rents for less, say $768, the housing authority would still only cover up to the SAFMR cap minus the tenant’s contribution, resulting in a lower subsidy amount.
Utility allowances also play a role in the reimbursement structure. These allowances vary but are designed to cover a portion of the tenant's energy costs. Landlords should be aware that these allowances do not directly increase the housing authority's payment towards the rent but can affect the overall rent calculation.
In ZIP 54888, landlords might find themselves with a reimbursement gap or surplus depending on how they price their units. Given the SAFMR of $970 and an average market rent of $768, landlords pricing below the SAFMR will likely see a surplus when renting to Section 8 tenants. However, those setting rents above $970 will face a reimbursement gap, as the housing authority will not exceed the SAFMR limit.
For example, a landlord renting a two-bedroom unit at $970 would receive the full SAFMR amount plus any applicable utility allowance. But if the unit is priced at $1,050, the landlord would have a reimbursement gap of $80 per month, as the housing authority would only cover up to $970.
Ultimately, landlords in ZIP 54888 must carefully consider their rental rates relative to the SAFMR to ensure they are not left with an unmanageable reimbursement gap or unnecessarily leaving money on the table.
Data Sources: FMR data from HUD (2027). 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.