Location: Waushara County, WI | Metro: Oshkosh-Neenah, 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 | $790 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $250,170 | 0.56% | F |
| 4BR | $1,490 | $266,865 | 0.56% | F |
U.S. Census Bureau data (2024)
When considering whether to purchase a property in ZIP code 54923 for Section 8 investment, follow these steps:
1) Does the Fair Market Rent (FMR) of $1020 cover the debt service on a $242,009 property?
To determine if the FMR can support the debt service, calculate the monthly mortgage payment based on typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at 4%, the monthly principal and interest payment would be approximately $1,160. This amount does not include property taxes, insurance, and maintenance costs which can add another $200-$300 per month.
The FMR of $1020 does not fully cover the debt service of around $1,400-$1,500 per month. Therefore, the answer to this question is No.
2) Is the market rent of $835 above, at, or below the FMR?
The market rent of $835 is below the FMR of $1020. This suggests that properties in this area could potentially be rented out at the higher FMR rate to Section 8 tenants, making it a favorable condition for those interested in Section 8 housing.
3) Are 31.3% of residents renters and do the days on market (DOM) indicate sufficient demand?
With 31.3% of residents being renters, there is a notable rental market presence. However, the absence of data regarding the average days on market (DOM) makes it challenging to assess the liquidity of the rental market. Despite this lack of information, the percentage of renters indicates that there is demand for rental properties in the area.
Decision Tree Summary:
In conclusion, the primary issue is the FMR not covering the debt service, which is a critical factor. Even though the market rent is below the FMR and there is a significant portion of the population renting, the inability to meet debt obligations outweighs these benefits. Thus, the overall recommendation is No, unless the investor has other sources of income to cover the shortfall or plans to manage the property with a focus on cost control.
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.