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 | $1,010 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $315,007 | 0.41% | F |
| 3BR | $1,600 | $442,799 | 0.36% | F |
| 4BR | $1,710 | $535,874 | 0.32% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 53037 under the Section 8 program begin with tenant turnover. Market rents hover around $1,155, while the Fair Market Rent (FMR) for fiscal year 2024 stands at $1,230. This discrepancy can lead to higher turnover rates as tenants seek the subsidized rates offered by Section 8 vouchers, which may not fully cover the FMR. Landlords must be prepared for frequent tenant changes, which can disrupt property management and increase administrative costs.
Vacancy exposure is another critical concern. The Days on Market (DOM) data for this area is currently unavailable, indicating a lack of recent sales activity that could provide insight into how quickly properties are rented out. A prolonged vacancy period can significantly impact cash flow and overall profitability, especially when dealing with the fixed payment structure of Section 8.
Deferred maintenance poses a substantial risk due to the disparity between the typical home value of $410,911 and the median income of $97,611. While homes in the area are valuable, the median income suggests that many residents might struggle to afford necessary repairs and upgrades, potentially leaving landlords responsible for additional upkeep costs beyond routine maintenance.
Despite these risks, the high renter share of 26.1% indicates a robust demand for rental housing, likely translating to a steady stream of Section 8 voucher holders seeking accommodation. High renter density can mitigate vacancy concerns by ensuring a continuous pool of potential tenants, reducing the likelihood of extended vacancy periods.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.