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 | $1,190 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $334,186 | 0.46% | F |
| 3BR | $1,880 | $543,345 | 0.35% | F |
| 4BR | $2,020 | $767,769 | 0.26% | F |
| 5BR | $2,343 | $1,006,356 | 0.23% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 53072 within the Village of Pewaukee, WI, under the Section 8 program include significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance. At a market rent of $1,381, properties are below the Fair Market Rent (FMR) of $1,450 for FY 2024, which can lead to higher tenant turnover rates as residents seek more affordable options. Vacancy exposure is another concern, given the lack of available data on Days on Market (DOM), making it difficult to predict how long a unit might remain vacant between tenants. Additionally, the typical home value of $538,309 contrasts sharply with the median income of $98,538, indicating that many homeowners may have deferred maintenance due to financial constraints, which can translate into higher maintenance costs for landlords.
Despite these risks, the high renter share of 24.2% in ZIP 53072 suggests a robust demand for rental housing, including units supported by Section 8 vouchers. This high density of renters typically correlates with a greater number of voucher holders looking for accommodation, thus potentially stabilizing occupancy rates and providing a steady stream of tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.