Section 8 Fair Market Rent (FMR) for ZIP 54935 - 2027

Investment Score for ZIP 54935

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	$820
1 Bedroom	$950
2 Bedrooms	$1,180
3 Bedrooms	$1,500
4 Bedrooms	$1,670
5 Bedrooms	$1,937
6 Bedrooms	$2,169
7 Bedrooms	$2,343
8 Bedrooms	$2,460

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$950	$140,258	0.68%	D
2BR	$1,180	$191,283	0.62%	D
3BR	$1,500	$243,183	0.62%	D
4BR	$1,670	$278,852	0.6%	F
5BR	$1,937	$277,016	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 54935 (Fond du Lac, WI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 54935, as of 2026, is set at $1140 for a two-bedroom unit. This represents approximately 21.7% of the median household income of $63,144, indicating that the rent is relatively affordable for the average resident. However, the actual rental market in Fond du Lac is significantly higher, with Zillow reporting a median price of $181,201 for a two-bedroom property. This translates into a price-to-FMR ratio of 13.2x, meaning that the actual market rent for a two-bedroom unit is likely much higher than the FMR. For voucher holders, the constraints are clear. The maximum amount they can pay for a two-bedroom unit is $1140, which is far below the actual market rate. This could limit their housing options, as landlords may be hesitant to accept vouchers if they can get higher rents from non-voucher tenants. Additionally, voucher holders must find units that accept the voucher and are willing to rent at the FMR rate, which might be scarce given the high market rates. #### Affordability & Renter Profile With a population of 41,613, Fond du Lac has a significant renter base, accounting for 40.5% of the total population. The occupancy rate of 92.8% suggests that the rental market is fairly tight, with most available units being occupied. Given the median household income of $63,144, renters in this area are likely to be middle-income families who are struggling to find affordable housing. The high price-to-FMR ratio indicates that the market is not particularly affordable for those relying on Section 8 vouchers. The tight market conditions mean that there is a strong demand for rental properties, but the supply is limited, especially for those who can only afford the FMR rates. This creates a challenging environment for both renters and landlords, as it becomes difficult to find units that meet the needs of voucher holders while still providing a reasonable return for landlords. #### Investor Angle From an investor perspective, the ZIP code 54935 presents a mixed picture. While the rental market is tight and there is a high demand for units, the actual market rents are significantly higher than the FMR. For example, the Zillow median price for a two-bedroom unit is $181,201, which implies a monthly rental cost of around $1510 based on typical mortgage payments and property management costs. This is substantially above the FMR of $1140. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning a rental property. Assuming a mortgage payment of $1000 per month, property taxes of $200, insurance of $100, and maintenance costs of $100, the total monthly expense would be $1400. At the FMR of $1140, this would result in a negative cash flow of $260 per month. Therefore, renting at FMR is not financially viable for most investors unless they have a lower-cost basis or other sources of revenue. Given the high price-to-FMR ratio and the tight market conditions, the investment grade for this ZIP code is moderate to low. Investors should carefully evaluate the potential for long-term appreciation and the ability to attract non-voucher tenants before considering any investments. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should seek out units that are priced below the FMR to ensure positive cash flow. For instance, a two-bedroom unit priced at $1000 per month would provide a net positive cash flow of $140 per month, assuming the same expenses mentioned earlier. 2. **Consider Long-Term Appreciation**: Despite the current negative cash flow scenario, investors might still find value in the ZIP code if they believe in long-term appreciation. The median home price of $181,201 could potentially increase over time, making the investment worthwhile in the future. 3. **Diversify Tenant Base**: To mitigate financial risks, investors should diversify their tenant base by attracting both voucher and non-voucher tenants. This could involve offering amenities or services that make the units more attractive to a broader range of renters, such as energy-efficient appliances or modern finishes. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 54935 is to **Skip**. The current market conditions, with high actual rents compared to the FMR, make it difficult to achieve positive cash flow when renting exclusively to voucher holders. While there is a strong demand for rental properties, the tight market and high prices suggest that finding units that are both affordable and profitable will be challenging. Investors should look for areas where the FMR is closer to the actual market rents or where there is a greater supply of affordable units. --- This analysis provides a detailed overview of the rental market dynamics in ZIP code 54935, focusing specifically on the implications for Section 8 voucher holders and investors. The key points highlight the challenges faced by both groups and offer actionable insights for navigating the market.

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.