The injured man was flown to Waikato Hospital in a critical condition after police were called to the address at 7.38pm.
Police said on Saturday the man's condition had improved and he was stable.
A homicide investigation has been launched and police aren't looking for anyone else in relation to the matter.
Waikato Police Inspector John Kelly earlier said police recovered a gun at the scene.
Wallace is understood to have lived in Ōtorohanga previously and also at the Otewa Rd house for some years where the man bred pigs.
She had four children, the youngest thought to be still at school, and several grandchildren.
On Facebook two of her daughters posted tributes to their mother and a photograph.
Briar Rose Wallace wrote: "Love you mum", and friends posted condolence messages.
Behind a scene guard at the house on Saturday police continued a forensic examination with ESR and other experts.
Dressed in white boiler suits they moved a blue gazebo across the property, where a farm house, cars, fences, kennels and other farm equipment could be seen.
The Herald understands Wallace's body lay outside and could not be removed until the examination was complete.
A bullet hole could be seen in the windscreen of one of two utes at the property.
A kaumatua performed a karakia from the gate to bless the land.
An uncle to the man, the kaumatua said he was deeply shocked when he heard the news on Friday night.
Another family member, Moera Hughes, said his mother did not believe him when he broke the news to her.
The pair kept vigil outside the property but left when police said it would be hours before they could remove Wallace.
Hughes said the extended family was scattered but they planned to be there when Wallace's body was brought out.
Police expected that would be Saturday night.
The whanau's marae, Otewa Marae, was close by. Otewa Rd is east of Ōtorohanga and winds through farmland.
Police are remaining tight-lipped about what might have happened at the property.
"Police inquiries are continuing, however we are not seeking anyone else in relation to the shooting."