Location: Waupaca County, WI | Metro: Waupaca County, WI
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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,340 | $263,523 | 0.51% | F |
U.S. Census Bureau data (2024)
ZIP 54949, located in Manawa, Waupaca County, WI, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The median monthly Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $970, while the market rent in 54949 is $873. This creates a positive spread of $97, making it attractive for landlords participating in the Section 8 program.
The median home value in 54949 is $257,342, which is lower than the metro area's median home value of $260,894. However, the key advantage lies in the rental income. With a 5-year compound annual growth rate (CAGR) of 8.0%, the area shows potential for appreciation, but the primary benefit is the rental income. The 1% rule, which suggests a property is affordable if its monthly rent is at least 1% of its purchase price, fails here, indicating that the primary focus should be on the rental income rather than flipping properties.
Given the median household income of $76,975, the rental market remains stable and viable. The high vacancy rate of 12.9% could be seen as a risk, but it also presents opportunities for landlords who can manage their properties effectively. Experienced landlords with local relationships can leverage the lower market rent against higher FMR to secure steady cash flow.
The ZIP's 22.6% renter share aligns well with a Section 8 strategy, offering a mix of tenants including those eligible for government assistance. This diversifies the tenant base and stabilizes rental income, making it a reliable component of a larger investment portfolio.
In conclusion, ZIP 54949 is best suited as a cash-flow anchor due to the positive spread between FMR and market rent, stable rental market, and the presence of a significant renter share. While appreciation is possible, the immediate cash flow benefits outweigh other considerations for a Section 8-focused portfolio.
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.