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 | $1,000 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $305,130 | 0.42% | F |
| 3BR | $1,570 | $421,624 | 0.37% | F |
| 4BR | $1,690 | $580,852 | 0.29% | F |
| 5BR | $1,960 | $645,158 | 0.3% | F |
U.S. Census Bureau data (2024)
The ZIP code 53024 in Grafton, WI, encompasses a residential neighborhood with a total population of 18,982. Approximately 35.1% of the residents are renters, indicating a moderate demand for rental properties. The median household income in this area stands at $92,390, suggesting a middle to upper-middle class community. The median home value is $468,165, reflecting a stable housing market where property values are relatively high but accessible to many local residents.
From an investment perspective, the economic landscape is favorable. The Fair Market Rent (FMR) for ZIP 53024, as set for fiscal year 2024, is $1,170. This is notably lower than the market rent, measured by the Zillow Observed Rent Index (ZORI), which is $1,861. This discrepancy between FMR and ZORI indicates a potential opportunity for landlords and small-portfolio investors to capture higher rents through non-voucher tenants, while still being able to participate in the Section 8 program if they choose to do so.
Given these figures, ZIP 53024 would suit both hands-off voucher operators and hands-on value-add buyers. For those preferring a hands-off approach, the Section 8 program provides a reliable source of income with less risk of vacancy. However, for investors willing to engage more actively, there is room to increase property values and rents above the FMR level, thereby maximizing returns on investment. The presence of a significant number of renters alongside a strong median income suggests that the market can support a variety of investment strategies, whether focused on stability or growth.
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.