Location: Fillmore County, MN | 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 | $860 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,590 | $245,655 | 0.65% | D |
| 4BR | $1,990 | $359,712 | 0.55% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 55974 operate under specific financial guidelines that landlords need to understand. For a two-bedroom apartment in this area, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1020. This figure is crucial because it is the maximum amount that the housing authority will pay towards a tenant's rent. It's important to note that this SAFMR is specific to ZIP 55974, meaning it reflects the rental market conditions precisely in this location.
Local market rents, according to the Census ACS, run slightly lower at $947 for a two-bedroom unit. However, the SAFMR is the benchmark for Section 8 payments, not the local market rate.
When a landlord participates in the Section 8 program, they receive a voucher payment from the housing authority that covers most of the tenant's rent, but not all. The tenant themselves is responsible for paying a portion of the rent, which is typically 30% of their income. Additionally, there are utility allowances that vary based on the number of bedrooms and can range from $100 to $300 per month. For a two-bedroom apartment, the utility allowance might be around $200.
To illustrate, let's assume the tenant's portion is $300 and the utility allowance is $200. The total reimbursement from the housing authority would be $1020. Therefore, the landlord would receive a total of $1520 ($300 tenant contribution + $1020 voucher payment + $200 utility allowance).
In ZIP 55974, where the market rent for a two-bedroom is $947, participating in Section 8 could result in a surplus for the landlord. In this case, the surplus would be $573 ($1520 total reimbursement - $947 market rent).
This surplus is significant and can help cover maintenance costs, vacancies, and other expenses associated with property management. However, landlords must also consider that the tenant's portion of the rent is based on their income, so it can fluctuate over time.
In summary, landlords in ZIP 55974 who participate in the Section 8 program for a two-bedroom apartment can expect a reimbursement of up to $1020 plus the tenant's contribution and utility allowance, leading to a potential surplus of $573 above the local market rent. This economic model supports both affordability for tenants and financial stability for landlords.
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.