Location: Sheboygan, WI | Metro: Sheboygan, 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 | $1,080 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,850 | $401,540 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 53044 reveals a significant gap between the Fair Market Rent (FMR) set at $1230 for fiscal year 2024 and the actual market rent reported at $1,180 according to the Census ACS. This means that the FMR is $50 higher than the market rent, representing a 4.24% premium.
This gap indicates an opportunity for landlords and small-portfolio investors. Voucher tenants can offer a consistent and reliable source of income due to the government's guarantee of payment up to the FMR level. With the FMR exceeding the current market rent, landlords can potentially increase their rental yields without facing the typical risks associated with raising rents above market levels.
However, it is crucial to understand the implications of accepting Section 8 tenants. While the guaranteed income can be attractive, there are administrative requirements and potential maintenance costs that come with housing voucher recipients. The government's involvement ensures a steady cash flow, but it also means adhering to federal guidelines and possibly dealing with the challenges of working with the housing authority.
The ZIP code 53044 has a relatively low percentage of renters at 12.8%, suggesting that homeownership is more prevalent. The median home value stands at $432,436, which is indicative of a middle to upper-middle-class community. With a median household income of $131,250, landlords should consider these factors when deciding whether to participate in the Section 8 program. Despite the high median income, the market rent being lower than the FMR presents a unique scenario where landlords can leverage the voucher system to achieve better yields while serving a demographic that might otherwise struggle to afford housing.
In conclusion, the $50 premium on FMR over market rent in ZIP code 53044 makes it a compelling yield play for landlords and small-portfolio investors willing to navigate the administrative aspects of the Section 8 program. This premium allows landlords to charge slightly more than what the open market would bear, thus optimizing their returns on investment.
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.