Location: Oshkosh-Neenah, WI | Metro: Fond du Lac, 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 | $890 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $287,308 | 0.41% | F |
| 3BR | $1,580 | $355,302 | 0.44% | F |
| 4BR | $1,610 | $426,361 | 0.38% | F |
U.S. Census Bureau data (2024)
In ZIP code 54904, which encompasses Oshkosh, WI, and part of Winnebago County, the economics of Section 8 housing vouchers can be quite straightforward when understood properly. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1020. This SAFMR is specifically tailored for this ZIP code, meaning it reflects the rental conditions unique to this area.
The local market rent, as indicated by ZORI (Zillow Observed Rent Index), is currently at $1395. This represents the average rent charged for similar units in the same ZIP code. When a landlord participates in the Section 8 program, they receive reimbursement from the government based on the SAFMR, not the local market rent. However, the total payment received by the landlord includes both the government reimbursement and the tenant's portion of the rent.
To break down the actual payment a landlord receives, let's consider the components involved. First, the tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income for a household in this area, the tenant's portion might typically be around $306, which is 30% of the SAFMR. This amount is paid directly to the landlord. Next, the government reimburses the landlord for the remaining 70% of the SAFMR, which would be approximately $714.
Additionally, the Section 8 program provides utility allowances. These vary but can generally cover a significant portion of heating, cooling, water, and electricity costs. In ZIP 54904, the utility allowance for a two-bedroom unit is estimated at around $200. Therefore, the total reimbursement a landlord would receive is the sum of the tenant's portion, the government's reimbursement, and the utility allowance. This totals up to $1220.
Given that the local market rent is $1395, there is a noticeable gap between what landlords would typically charge in the open market and what they receive through the Section 8 program. This gap, or reimbursement shortfall, amounts to about $175 per month. Landlords must decide whether the benefits of participating in the Section 8 program, such as guaranteed rent payments and reduced vacancy rates, outweigh this economic difference.
It's important for landlords to understand these figures and how they impact their bottom line. While the SAFMR sets a cap on what the government will reimburse, the combination of tenant payments and utility allowances can still provide a steady and predictable income stream. However, it does not match the higher rents seen in the local market, leading to a consistent reimbursement gap.
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.