Location: Walworth County, WI | Metro: Walworth 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 | $840 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $300,324 | 0.4% | F |
| 3BR | $1,500 | $396,028 | 0.38% | F |
| 4BR | $1,980 | $483,734 | 0.41% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 53121, which includes Sugar Creek, WI, stands at $85,643. At first glance, this figure seems robust enough to support the $1,495 market rate for rent, known as the ZORI (Zillow Observed Rent Index). However, when considering the actual affordability for residents, the picture becomes more nuanced.
To put this into perspective, let's examine the housing voucher payment standard set at $1,130, which represents the Fair Market Rent (FMR) for the metro area in fiscal year 2026. This amount is significantly lower than the market rate, indicating that many households might find it challenging to cover the $1,495 monthly rent without assistance.
In ZIP 53121, 27.9% of the 18,551 population are renters. Given the discrepancy between the median income and the ZORI, landlords face a notable affordability gap. This means that a portion of potential tenants may struggle to pay the market rate, leading to increased competition among landlords who offer more affordable options or accept vouchers.
The takeaway for landlords is clear: while cash-paying tenants are desirable due to their ability to meet higher market rates, those willing to work with housing vouchers will have a competitive edge in attracting tenants. Accepting vouchers at the $1,130 FMR can ensure a steady stream of tenants, albeit at a lower rental price point than the market rate. Landlords must weigh the benefits of higher rents against the risks of vacancies in a market where affordability is a significant concern.
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.