Location: La Crosse-Onalaska, WI | Metro: La Crosse-Onalaska, WI-MN HUD Metro FMR Area
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 | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $228,870 | 0.46% | F |
| 3BR | $1,370 | $270,224 | 0.51% | F |
| 4BR | $1,720 | $342,939 | 0.5% | F |
U.S. Census Bureau data (2024)
The market in ZIP 55921, encompassing Caledonia, MN, is characterized by a significant gap between the Fair Market Rent (FMR) and the actual market rent, indicating a dynamic housing environment. The FMR set at $930 for fiscal year 2024 contrasts with the Census American Community Survey's reported market rent of $836. This suggests that while the government benchmark is higher, the current rental market may be experiencing some downward pressure, possibly due to competition among landlords or an oversupply of rental units.
The median home value in Caledonia stands at $281,954. This figure, combined with the lack of specific data on price-cut share and days on market (DOM), points towards a stable residential market. However, the absence of these metrics could imply that the market is not highly volatile, and that there isn't a significant fluctuation in property prices or a rapid turnover rate, which might otherwise indicate either strong buyer interest or a glut of homes for sale.
A noteworthy statistic is the 21.0% renter share of the population. This percentage reflects a substantial portion of residents who prefer or must rely on renting over homeownership. Such a high renter share can signal ongoing long-term housing pressure, as it indicates a continuous demand for rental properties. Landlords and small-portfolio investors should recognize this as a persistent trend that supports the rental market, even if it doesn't necessarily suggest rapid growth or decline.
In summary, ZIP 55921 presents a rental market that is currently slightly below the government's fair market assessment, suggesting a balance or slight oversupply of rental units. However, the significant renter population ensures steady demand, making it a viable market for those interested in the rental sector. The overall dynamics indicate a need for landlords to remain competitive through pricing and property quality, without assuming a speculative trend based on the available data.
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.