Location: Oshkosh-Neenah, WI | Metro: Appleton, 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 | $880 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $226,250 | 0.53% | F |
| 3BR | $1,660 | $297,993 | 0.56% | F |
| 4BR | $1,860 | $346,494 | 0.54% | F |
| 5BR | $2,158 | $379,831 | 0.57% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 54914 in Appleton, WI, reveals an interesting picture when comparing the Federal Market Rent (FMR) to the market rent. For a two-bedroom unit, the FMR for fiscal year 2024 is set at $940 per month, while the market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1,125 monthly. The median home value in this area is $303,653.
To derive the gross yield, we first annualize these figures. The annualized FMR for a two-bedroom unit is $11,280 ($940 x 12 months), and the annualized market rent is $13,500 ($1,125 x 12 months).
The implied gross yield based on the FMR is calculated as follows: take the annual rent ($11,280) and divide it by the median home value ($303,653). This yields a gross rental yield of approximately 3.7%. In contrast, using the market rent figure ($13,500) divided by the median home value ($303,653) gives us a gross rental yield of about 4.4%.
Given that 39.1% of residents in ZIP 54914 are renters, it's important to consider how realistic these yields are. The N/A-day DOM (Days on Market) suggests there might be a strong demand for rentals, but without a specific number, it's challenging to determine if this demand translates directly into occupancy rates. However, the higher gross rental yield based on market rent (4.4%) is more likely to reflect the actual rental environment in Appleton, considering the significant gap between the FMR and market rent.
Landlords and small-portfolio investors should focus on the market rent scenario for a more accurate assessment of potential returns. While the FMR provides a baseline for government-subsidized rents, the market rent more closely aligns with what tenants are willing to pay in today’s rental market. Thus, the 4.4% gross yield is a better indicator of the financial performance of properties in ZIP 54914.
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.