Section 8 Fair Market Rent (FMR) for ZIP 53081 - 2027

Investment Score for ZIP 53081

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$800
1 Bedroom	$900
2 Bedrooms	$1,150
3 Bedrooms	$1,370
4 Bedrooms	$1,550
5 Bedrooms	$1,798
6 Bedrooms	$2,014
7 Bedrooms	$2,175
8 Bedrooms	$2,284

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$900	$161,455	0.56%	F
2BR	$1,150	$207,413	0.55%	F
3BR	$1,370	$252,763	0.54%	F
4BR	$1,550	$250,072	0.62%	D
5BR	$1,798	$235,060	0.76%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 53081 (Sheboygan, WI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 53081, as per HUD's 2026 estimates, is set at $1110 for a two-bedroom unit. This represents approximately 20.8% of the median household income in Sheboygan, which stands at $64,042. However, the actual rent for a two-bedroom unit, based on Zillow's median price, is significantly higher at $197,896. The price-to-FMR ratio is 14.9x, indicating that actual rental prices far exceed the FMR. For voucher holders, this means that finding affordable housing within the FMR limits can be challenging. They might face constraints due to the limited availability of units that fall within their budget, particularly for larger units like three or four bedrooms, where the FMRs are $1340 and $1520 respectively. #### Affordability & Renter Profile In Sheboygan, 38.8% of the population are renters, suggesting a significant demand for rental properties. With a high occupancy rate of 93.6%, it indicates that the rental market is relatively tight, with few vacant units available. Given the median household income of $64,042, many renters may struggle to afford the actual rental prices. The FMR for a two-bedroom unit at $1110 is only 20.8% of the median income, implying that a substantial portion of the population would find it difficult to pay the actual market rates without assistance. This tight market condition could lead to increased competition among renters and potentially higher rental prices. #### Investor Angle From an investor perspective, the ZIP code 53081 presents mixed opportunities. While the rental market is tight and there is a strong demand for rental properties, the actual rental prices are much higher than the FMRs. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical costs associated with owning and managing rental properties. Assuming a conservative estimate of operating expenses at 50% of the FMR, the net effective rent for a two-bedroom unit would be around $555 ($1110 * 0.5). This amount would need to cover mortgage payments, property taxes, insurance, maintenance, and other operational costs. Given the high price-to-FMR ratio, it is likely that most properties in this area would not generate positive cash flow at the FMR levels. For instance, a property priced at $197,896 would have a monthly mortgage payment of approximately $990 assuming a 30-year fixed-rate mortgage at 5%. This already exceeds the FMR for a two-bedroom unit, leaving little room for profit unless the investor can charge above the FMR or the property has exceptionally low operating costs. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on acquiring smaller units such as one-bedroom apartments, where the FMR is $880. These units are more likely to generate positive cash flow even when rented at the FMR. Additionally, the demand for smaller units is typically higher in areas with a large number of single-person households or young professionals. 2. **Consider Properties Below Market Value**: Investors looking to enter the Sheboygan rental market should seek out properties that are below the market value but still within the FMR range. For example, a two-bedroom unit priced at $150,000 would have a monthly mortgage payment of approximately $750, which is closer to the FMR of $1110. This would provide a better chance of achieving positive cash flow while still being competitive in the market. #### Bottom Line For Section 8-focused investors, the ZIP code 53081 is not recommended as a primary investment target. The high price-to-FMR ratio suggests that properties in this area are generally overpriced relative to the FMR, making it difficult to achieve positive cash flow. Instead, investors should consider areas with lower ratios or focus on smaller units where the FMR is more aligned with the actual rental prices. If investing in this ZIP code, it would be advisable to hold properties rather than buy new ones, given the current market conditions and the difficulty in finding properties that meet both affordability and profitability criteria.

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.