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 | $1,150 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $238,598 | 0.62% | D |
| 3BR | $1,820 | $469,798 | 0.39% | F |
| 4BR | $1,950 | $580,669 | 0.34% | F |
U.S. Census Bureau data (2024)
ZIP code 53022, located in Germantown, WI, within the Milwaukee-Waukesha, WI MSA metro area, can be effectively utilized as an appreciation play within a Section 8 portfolio strategy. The key metric supporting this classification is the 0.1% price-cut share, indicating that property values in this area rarely require reduction to sell. This suggests strong demand and stability in property pricing.
Furthermore, the median days on market (DOM) being N/A implies that properties in ZIP 53022 are typically sold quickly without extended periods of listing. This rapid turnover is indicative of a robust real estate market where investments appreciate steadily over time.
To elaborate, the Fair Market Rent (FMR) for ZIP 53022 in fiscal year 2024 is set at $1,360, which is below the market rate of $1,600 for a similar unit. This creates a spread of $240, making it less attractive purely as a cash-flow anchor. However, the median home value of $455,589 and median income of $100,890 suggest a stable economic environment that supports property value growth.
The 22.8% renter share indicates a moderate level of rental activity, which is beneficial for diversification but not sufficient to categorize this area solely as a diversifier. Instead, the focus should be on the potential for capital appreciation given the low price-cut share and quick sales, which are hallmarks of a strong real estate market.
In summary, ZIP 53022 is best positioned as an appreciation play within a Section 8 portfolio strategy. Landlords and small-portfolio investors should expect steady property value increases, supported by a strong local economy and minimal need for price reductions upon sale.
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.