Location: Waupaca County, WI | Metro: Portage County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 54977 reveals a nuanced investment scenario. To start, using the annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $1,130 (FY 2026), we can calculate the implied gross yield. The total annual rental income would be $13,560 ($1,130 x 12 months). Given the median home value of $320,126, the gross yield is approximately 4.24%. This is calculated as follows: $13,560 / $320,126 = 0.0424 or 4.24%.
In contrast, using the market rent figure of $850 (from Census ACS), the total annual rental income drops to $10,200 ($850 x 12 months). The gross yield in this case is significantly lower, coming in at about 3.19%. This calculation is straightforward: $10,200 / $320,126 = 0.0319 or 3.19%.
The difference between these two yields is substantial, with the FMR scenario providing a higher gross yield. However, the reality of the rental market must also be considered. With only 8.2% of the population being renters, the demand for rental properties is relatively low. This suggests that the market rent scenario is more likely to reflect actual rental income, given the limited number of potential tenants.
The FMR is set by HUD and represents the maximum amount of rent that a Section 8 tenant can pay, whereas the market rent reflects what similar properties are currently renting for. In ZIP 54977, the low renter density implies that landlords might struggle to fill vacancies at the higher FMR rate, making the lower market rent a more practical expectation.
Moreover, the Days on Market (DOM) data is not available, which typically indicates that properties are either rented quickly or not listed for long periods. Without this information, it's challenging to predict how quickly a property could be leased at the FMR rate. Therefore, while the FMR provides a higher gross yield, the market rent scenario, at 3.19%, is a safer estimate for potential returns in ZIP 54977.
Data Sources: FMR data from HUD (2027). 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.