Section 8 Fair Market Rent (FMR) for ZIP 54915 - 2027

Investment Score for ZIP 54915

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$900
1 Bedroom	$970
2 Bedrooms	$1,230
3 Bedrooms	$1,700
4 Bedrooms	$1,890
5 Bedrooms	$2,192
6 Bedrooms	$2,455
7 Bedrooms	$2,651
8 Bedrooms	$2,784

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,230	$241,125	0.51%	F
3BR	$1,700	$312,387	0.54%	F
4BR	$1,890	$390,628	0.48%	F
5BR	$2,192	$451,082	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 54915 (Appleton, WI) #### Section 8 Voucher Dynamics In ZIP code 54915, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1,180 per month for the year 2026. This amount represents 16.2% of the median household income of $87,426, which is relatively affordable compared to national standards. However, the actual rental market in Appleton presents a different picture. The Zillow median price for a two-bedroom home is $231,786, which translates to a monthly rent of approximately $1,640 based on a 5% annual rental yield. This is significantly higher than the FMR of $1,180, indicating that Section 8 voucher holders face substantial constraints when seeking housing. They must find landlords willing to accept the lower FMR rates, which can be challenging given the high demand and limited supply of affordable units. #### Affordability & Renter Profile The population of ZIP code 54915 is 44,367, with 28.1% being renters. This suggests a moderate rental market, but the occupancy rate of 97.3% indicates that the market is quite tight. With a median household income of $87,426, most residents have the financial means to afford market-rate rentals. However, the 28.1% of renters who rely on Section 8 vouchers are likely to struggle due to the high price-to-FMR ratio of 16.4x. This ratio implies that market rents are nearly 16 times higher than the FMR, making it difficult for low-income households to find suitable housing without significant subsidies. The tight market and high demand suggest that there is little oversupply, and competition among renters is fierce. #### Investor Angle From an investor’s perspective, the ZIP code 54915 offers a mixed outlook. Given the high Zillow median price and the tight rental market, properties could potentially generate strong cash flows if rented at market rates. However, for investors focusing specifically on Section 8 vouchers, the situation is less favorable. The FMR of $1,180 for a two-bedroom unit is far below the market rate of around $1,640, which means that landlords would need to accept a significant reduction in potential rental income to participate in the Section 8 program. This could make the investment less attractive unless the investor is willing to take a lower return in exchange for long-term stability and government support. To assess the investment grade, we consider the following factors: - **Occupancy Rates:** High occupancy rates indicate a stable demand for rental properties. - **Rental Yields:** The price-to-FMR ratio suggests that rental yields at FMR levels are much lower than market rates. - **Income Levels:** The median household income is relatively high, supporting market-rate rents but not necessarily FMR levels. Given these considerations, the investment grade for Section 8-focused properties in ZIP code 54915 is moderate. While the high occupancy rates provide some assurance of demand, the low FMR relative to market rates poses a challenge for profitability. #### Specific Actionable Insights 1. **Focus on Smaller Units:** Investors should consider focusing on smaller units such as one-bedroom apartments, where the FMR is $920. This is still a significant discount from the Zillow median price but might offer better opportunities for finding tenants who can afford the rent. Additionally, smaller units often have higher occupancy rates and are in greater demand. 2. **Seek Government Subsidies:** To improve cash flow, investors should explore additional government subsidies beyond Section 8. Programs like Low-Income Housing Tax Credits (LIHTC) can help offset the lower rental income associated with FMR rates. These programs can also provide incentives for maintaining and improving the quality of rental units, which is essential for attracting and retaining tenants. 3. **Consider Mixed-Income Developments:** Developing properties that cater to both Section 8 voucher holders and market-rate tenants can help balance the financial risks. By offering a mix of units at different price points, investors can ensure a steady stream of income while still participating in the affordable housing market. #### Bottom Line For investors focused on Section 8 vouchers, the recommendation for ZIP code 54915 is to **Skip** this market. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow at FMR levels. Instead, investors might want to look into areas with lower ratios or higher FMRs relative to median incomes. If they decide to invest in this area, they should focus on smaller units and seek additional government subsidies to enhance profitability. --- This analysis provides a comprehensive overview of the rental market dynamics in ZIP code 54915, highlighting the challenges and opportunities for Section 8-focused investors. The key takeaway is that while the market is robust, the constraints imposed by FMR rates make it less viable for those solely relying on Section 8 vouchers.

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.