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 | $770 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $273,547 | 0.4% | F |
| 3BR | $1,310 | $326,032 | 0.4% | F |
| 4BR | $1,480 | $406,067 | 0.36% | F |
| 5BR | $1,717 | $456,135 | 0.38% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 53085, which encompasses Sheboygan Falls, WI, Sheboygan County, and the broader Sheboygan, WI MSA, reveals a favorable cash flow scenario. The Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for this area in fiscal year 2024 is $980 per month. In contrast, the Census American Community Survey (ACS) reports the average market rent at $880 per month. This means that landlords accepting Section 8 vouchers can expect to cash flow positively at the HUD FMR, even when renting standard units.
To derive the rent-to-price ratio, we use the median home value of $337,503. Dividing the annualized HUD FMR ($11,760) by the median home value yields a rent-to-price ratio of approximately 0.035, or 3.5%. This suggests that rental income is relatively modest compared to property values, but it still supports positive cash flow given the lower market rents. The dynamics between renting and buying do not significantly impact the decision-making process due to the lack of specific data on days on market (DOM) and price cut shares, both of which are noted as N/A.
The strongest investor angle in this market is cash flow. Landlords can benefit from the higher FMR set by HUD compared to the local market rents, ensuring a steady stream of income above their operational costs. While appreciation and stability are also important considerations, the immediate financial advantage of positive cash flow makes it the most compelling reason for Section 8 investors to focus on ZIP 53085.
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.