Location: Waupaca County, 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 | $810 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $203,187 | 0.55% | F |
| 3BR | $1,540 | $277,720 | 0.55% | F |
| 4BR | $1,600 | $334,086 | 0.48% | F |
U.S. Census Bureau data (2024)
The ZIP code 54961, located in New London, WI, presents an interesting mix of yield and stability factors for real estate investment. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $920, which is higher than the local market rent of $865. This suggests a potential for higher rental yields if the property can be leased at the FMR rate. However, the median home value stands at $282,482, indicating that the capital investment required for acquiring properties in this area is relatively high.
To assess stability, consider the proportion of renters, which is 29.3%. While this percentage is not exceptionally high, it does provide a reasonable base of potential tenants. The median household income in the area is $71,824, which supports the ability of residents to afford rents at the FMR level. The lack of data on the average number of days on market (DOM) makes it challenging to gauge how quickly properties might be rented out, but the income figure suggests that demand for rental housing could be steady.
Yield Analysis: The gap between the FMR ($920) and the market rent ($865) indicates a potential for slightly above-average rental income. If you can position your property to attract tenants willing to pay closer to the FMR, this could result in a higher monthly cash flow compared to the average market conditions.
Stability Analysis: With nearly 30% of the population being renters and a median income of $71,824, there is a foundation for stable occupancy rates. The income level suggests that tenants would have the financial capacity to maintain their rental payments consistently, reducing the risk of vacancies or delinquencies.
In conclusion, ZIP 54961 leans towards a steady-cashflow zone. The slight premium in rental rates over market averages, combined with a decent proportion of renters and solid median incomes, points towards a reliable source of rental income without the volatility associated with higher-risk markets. The relatively high median home value means that while the initial investment is significant, the ongoing returns are likely to be consistent and dependable.
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.