Location: Sheboygan, WI | Metro: Sheboygan, WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 53093 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1090, while the Census ACS data indicates that the average market rent in the area is $1,018. This means that the FMR is $72 higher than the market rent, representing a 7.1% premium.
The premium attached to FMR in comparison to the market rent makes ZIP 53093 an attractive yield play for landlords and small-portfolio investors who choose to accept housing vouchers. Despite the lower rental rate compared to the open market, the guaranteed payment structure of Section 8 vouchers, combined with the government subsidy, ensures a steady and reliable income stream. This stability can be particularly beneficial in a market where only 8.2% of residents are renters, suggesting a limited pool of potential tenants.
With a median home value of $351,489 and a median income of $101,429, the area is generally affluent, which can contribute to higher property values and maintenance costs. However, the slightly elevated FMR rate helps offset these expenses, making it financially viable to house voucher tenants even below the typical market rates. The higher FMR also mitigates risks associated with vacancy rates, given the competitive advantage vouchers provide in securing long-term, stable tenancy in a low-renter environment.
To summarize, the $72 or 7.1% premium of FMR over market rent in ZIP 53093 presents a compelling opportunity for landlords and investors to leverage the Section 8 program. It offers a balance between maintaining profitability and contributing to affordable housing initiatives, especially in a context where the demand for rental properties is relatively low.
Data Sources: FMR data from HUD (2027). 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.