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 | $1,470 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,890 | $397,157 | 0.48% | F |
| 3BR | $2,320 | $482,531 | 0.48% | F |
| 4BR | $2,490 | $667,304 | 0.37% | F |
| 5BR | $2,888 | $910,614 | 0.32% | F |
U.S. Census Bureau data (2024)
The ZIP code 53045, located in Brookfield, Wisconsin, presents an interesting scenario for both renters and landlords. The median household income in this area stands at $123,750, which is significantly higher than the national average. However, when it comes to housing costs, the picture becomes more nuanced.
The market rate rent, known as ZORI (Zillow Observed Rent Index), for ZIP 53045 is $2,142 per month. This figure represents the typical rental cost for properties in the area. Given the median income, a household could theoretically afford this amount, but it would depend heavily on their other financial obligations and expenses.
In contrast, the Fair Market Rent (FMR) for the zip code for fiscal year 2024 is set at $1,760. This is the maximum amount that HUD will pay for a voucher, intended to help low-income families afford housing. The difference between the market rate ($2,142) and the voucher payment standard ($1,760) highlights a significant affordability gap for those relying on vouchers.
With 23.7% of the 23,329 population being renters, there is a notable demand for rental properties. Yet, the disparity between the ZORI and FMR suggests that landlords might face stiff competition when targeting tenants who can pay the market rate. Conversely, landlords who accept Section 8 vouchers will have a different kind of competition, primarily from those willing to offer units at the lower voucher rate.
The takeaway for landlords considering whether to adopt a voucher or cash-pay strategy is clear. While accepting vouchers ensures a steady stream of tenants, it also means operating at a lower margin due to the payment cap. On the other hand, focusing on cash-paying tenants allows for capturing the full market value, but may require additional efforts to attract and retain them given the high cost relative to available subsidies.
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.