Invest In Apartment Buildings In Fond du Lac, WI

Who Rents In Fond du Lac

Fond du Lac's apartment demand starts with its 7,951 renter households, 41.8% of all occupied homes in the city (U.S. Census ACS 2020–2024). Renter households rose 7.1% over five years while population grew 3.7%. More of Fond du Lac's residents are renting than before.

Median household income in Fond du Lac, WI is $62,260, up 18.1% over five years. Resident employment rose 3.7% and the unemployment rate was 4.4% in the latest survey. Rent has risen faster than income (25.1% versus 18.1%), so more tenants are stretched. Well-run older buildings that rent below new construction tend to hold up best in that setting.

Renters are a large minority in Fond du Lac. Buildings close to employers and main roads usually see the steadiest demand.

The Supply Picture In Fond du Lac

Median gross rent in Fond du Lac, WI is $913 a month, up 25.1% from $730 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That's fast growth. Part of it reflects the national rent run-up of 2021 and 2022, and some of it can fade when new buildings open nearby, so we don't project the same pace forward.

Rental vacancy is 6%, within the normal range for a balanced market. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 45.1% of renters spend 30% or more of their income on housing. That is close to the national picture, where roughly half of renters do, so rent increases need to track local wage growth.

About 25% of homes in Fond du Lac are in buildings with 5 or more units, roughly 5,116 homes. It grew 7.2% over five years, a moderate amount of new supply. The median home was built in 1967. Much of the stock is old enough that roofs, plumbing and electrical systems need a close look, and older buildings are where value-add renovation plans start.

Where Fond du Lac Stands Among Its Peers

We track 35 Wisconsin cities. Fond du Lac places 32nd for median gross rent, 13th for renter share and 19th for five-year rent growth. Its rents sit near the bottom of the group, which keeps it affordable for tenants but also caps what renovations can earn. Compared with the 2015–2019 survey, Fond du Lac now has about 1,585 more residents, 527 more renter households and 344 more homes in buildings with 5 or more units. Renter households grew by about 1.5 for every new home in a larger apartment building. Not every renter lives in an apartment, but demand has clearly kept ahead of new multifamily supply.

How Fond du Lac Compares With The Wisconsin Average

Fond du Lac's median gross rent of $913 is below the Wisconsin median of $1,087, and its renter share is 41.8% compared with 32.2% statewide.

Rent Versus Income In Fond du Lac

The median rent in Fond du Lac works out to $10,956 a year, about 17.6% of the median household income of $62,260. Under the common 30% guideline, a household needs about $36,500 a year to cover that rent comfortably. That's close to the Wisconsin figure of 16.8%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

Since the 2015–2019 survey, the median rent rose $183 a month ($2,196 a year), while median household income rose $9,542 a year. Rent has outpaced income, so we are careful about how much further a business plan pushes rents on renewal.

Fond du Lac Apartment Market Key Facts

These are the core numbers for Fond du Lac, WI, each from the Census Bureau's American Community Survey.

• Fond du Lac, WI has 44,494 residents, up 3.7% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Fond du Lac, WI is $62,260, up 18.1% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Fond du Lac, WI is $913 a month, up 25.1% over five years (U.S. Census ACS 2020–2024).
• 41.8% of households in Fond du Lac, WI rent, about 7,951 renter households (U.S. Census ACS 2020–2024).
• 25% of homes in Fond du Lac, WI are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Fond du Lac, WI is 6%, and 45.1% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Fond du Lac, WI was built in 1967 (U.S. Census ACS 2020–2024).

What We Look For In A Fond du Lac Apartment Building

In Fond du Lac we focus on apartment buildings with 5 or more units. Some are stabilized and well run. Others have below-market rents or deferred maintenance that a better operator can fix. Either way, the deal has to make sense on current numbers.

Property taxes are a big line item for any Wisconsin apartment building. We estimate the tax bill as it will be after the purchase, because a sale can trigger a reassessment in many places. Wisconsin has no statewide rent control law, though local rules on notices, fees and deposits still apply. Insurance quotes in Wisconsin reflect winter storm and frozen-pipe claims, so we get a quote before we make an offer.

Given how fast rents rose here, we assume much slower rent growth going forward and make sure the deal still works if rents stay flat for a while.

Evaluating Apartment Syndications In Fond du Lac

The data on this page turns into a short checklist for evaluating an apartment syndication in Fond du Lac.

• What vacancy does the plan assume? Rental vacancy in Fond du Lac is 6%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 25.1% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• What capital work is budgeted? The median home in Fond du Lac was built in 1967, so roofs, plumbing and electrical systems deserve their own line items.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Fond du Lac Apartment Syndication Works

A syndication splits the work from the capital. As general partner, Skyline sources and buys the building, sets the business plan and runs it with a property manager. Limited partners invest money, own part of the property and receive reports, but they don't manage anything day to day.

Syndications are long-term and illiquid, and capital usually stays committed for several years. Results are never certain. Most offerings are limited to accredited investors, and the rules depend on whether a deal uses Rule 506(b) or Rule 506(c). See investing with Skyline Capital for how we work with limited partners.

Getting Started

The first step is the investor network. It's free, and it's how we share market notes and get to know investors. If we buy in Fond du Lac or elsewhere and you're eligible, we'll reach out privately with the details.