Location: Milwaukee-Waukesha, WI | Metro: Milwaukee-Waukesha, WI MSA
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 | $940 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $386,943 | 0.31% | F |
| 3BR | $1,490 | $489,987 | 0.3% | F |
| 4BR | $1,610 | $658,336 | 0.24% | F |
U.S. Census Bureau data (2024)
Cedarburg, WI, is a charming suburb located in Ozaukee County, with a total population of 19,183. The area is predominantly owner-occupied, with only 27.0% of residents being renters. This indicates a community where homeownership is valued and common, suggesting a stable and possibly affluent demographic. The median household income in Cedarburg is strong at $96,090, which supports a robust local economy and a high standard of living. Reflecting this economic strength, the median home value stands at a substantial $531,572, making it an attractive location for both residents and investors looking for property appreciation.
Turning to the rent economics, the Fair Market Rent (FMR) for ZIP code 53012, as set by HUD for fiscal year 2024, is $1,110. This figure is notably lower than the Zillow Observed Rent Index (ZORI), which stands at $1,720. This disparity highlights the potential for rental income above the voucher rate, indicating a favorable environment for landlords who can attract tenants willing to pay market rates. However, it also suggests that landlords relying solely on Section 8 vouchers might find themselves with limited profit margins compared to the overall rental market.
Given these factors, Cedarburg, WI, is better suited for a hands-on value-add buyer rather than a hands-off voucher operator. The higher market rents provide opportunities for investors to increase property values through renovations and improvements, thereby attracting tenants who can afford to pay above the voucher rate. For those looking to engage actively in property management and improvement, Cedarburg offers a solid foundation for achieving financial returns that surpass the baseline provided by Section 8 vouchers alone.
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.