Location: Jefferson County, WI | Metro: Dodge County, WI
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 | $890 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $245,954 | 0.51% | F |
| 3BR | $1,660 | $330,384 | 0.5% | F |
| 4BR | $1,660 | $401,394 | 0.41% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 53098 in Watertown, WI, hinges on the interplay between its yield potential and market stability. On the yield axis, the area presents a compelling opportunity. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,260, which is notably higher than the market rent of $1,100. This suggests that properties in this ZIP code can command rents above the local average, enhancing their profitability. Additionally, the median home value of $325,851 indicates a relatively stable housing market, but also implies that the cost of acquiring rental properties is substantial.
Moving to the stability axis, the data points to a moderately stable rental environment. With 32.8% of residents being renters, the market has a decent base of tenants. However, the lack of information regarding the number of days on market (DOM) makes it challenging to assess the speed at which vacancies can be filled. The median household income of $74,431 provides some assurance that tenants can afford the rent, though it's lower than the national average, which could affect stability.
Based on these figures, ZIP 53098 does not fit neatly into a high-yield/low-stability 'flip-style' market or a steady-cashflow zone. Instead, it represents a middle-ground scenario. The higher-than-market FMR suggests opportunities for above-average yields, particularly if landlords can leverage government programs such as Section 8. However, the relatively low percentage of renters and median income indicate a less stable market compared to urban centers with higher renter populations and incomes.
To succeed in this market, landlords should focus on properties that can attract tenants willing to pay closer to the FMR, while also ensuring they maintain a balance between rental rates and tenant affordability. This approach will maximize yield without compromising on stability.
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.