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 | $1,160 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $343,653 | 0.43% | F |
| 3BR | $1,830 | $486,027 | 0.38% | F |
| 4BR | $1,960 | $639,378 | 0.31% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 53089, which encompasses Lisbon, WI, is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 53089 in fiscal year 2024 is set at $1330, while the Census ACS data indicates that the market rent stands at $1369. This creates a gap of $39, representing a 2.92% difference between the two figures.
In this scenario where the FMR is less than the market rent, landlords must be aware of the potential costs associated with housing voucher tenants. The lower FMR rate means that landlords will receive payments closer to $1330 rather than the higher market rent of $1369. This discrepancy can result in reduced cash flow for landlords who rely on rental income to cover maintenance, property taxes, and other expenses.
Lisbon, WI, has a rental population of 20.8%, indicating a significant portion of residents who might seek subsidized housing options. The median home value in the area is $539,767, which is notably higher than the median household income of $120,875. This suggests that many residents could struggle to afford market-rate rents without assistance, making Section 8 vouchers a critical component of the local rental market.
Given these economic conditions, landlords should consider the benefits and drawbacks of accepting Section 8 tenants. While the FMR rate is slightly below the market rent, the steady and government-backed payment can provide a reliable source of income. However, landlords must also account for the potential challenges such as the administrative process, inspections, and the possibility of lower rent compared to what they could charge non-voucher tenants.
To summarize, the gap between the FMR and market rent in ZIP 53089 is $39, or 2.92%. This makes it important for landlords to weigh the financial implications of accepting Section 8 tenants against the stability of guaranteed rent payments. In an area where over 20% of the population are renters and the median income is significantly lower than the median home value, Section 8 vouchers offer a lifeline to many potential tenants, but landlords must carefully evaluate the impact on their investment yields.
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.