Section 8 Fair Market Rent (FMR) for ZIP 53122 - 2027

Location: Milwaukee-Waukesha, WI | Metro: Milwaukee-Waukesha, WI MSA

Investment Score for ZIP 53122

Monthly Rent (2BR)

$1,860

Median Price (2BR)

$358,065

1% Rule

0.52%

Annual Yield

6.23%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,450
1 Bedroom	$1,560
2 Bedrooms	$1,860
3 Bedrooms	$2,290
4 Bedrooms	$2,450
5 Bedrooms	$2,842
6 Bedrooms	$3,183
7 Bedrooms	$3,438
8 Bedrooms	$3,610

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,860	$358,065	0.52%	F
3BR	$2,290	$625,851	0.37%	F
4BR	$2,450	$829,556	0.3%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

6,508

Median Household Income

$157,962

Housing Units

2,470

Renter Percentage

11.4%

Occupancy Rate

92.8%

Renter Occupied

261

The economics of Section 8 housing in ZIP code 53122, Elm Grove, WI, within Waukesha County, operate under specific parameters. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1420 per month for the fiscal year 2024. This figure represents the maximum amount that the federal government will reimburse landlords for participating in the Section 8 Housing Choice Voucher program. It's important to note that this SAFMR is specific to this ZIP code, meaning it reflects the local rental market conditions.

The local market rent, as measured by ZORI (Zillow Observed Rent Index), is significantly higher at $3,497 per month for a two-bedroom unit. This difference highlights the disparity between the market rent and the SAFMR, which can impact a landlord's decision to participate in the program.

To understand the actual payment a landlord receives from a Section 8 voucher, consider the following components:

Tenant Portion: The tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $2,000, the tenant would pay approximately $600 per month.
Voucher Reimbursement: The voucher covers the difference between the tenant's payment and the SAFMR, up to $1420. Therefore, the landlord would receive $1420 - $600 = $820 from the voucher.
Utility Allowances: Additional payments for utilities are also included. These allowances vary but typically add a few hundred dollars to the reimbursement, bringing the total closer to $1420.

In summary, for a two-bedroom apartment in ZIP 53122, a landlord participating in the Section 8 program would receive a total reimbursement of around $1420 per month, including the tenant's payment and utility allowances. Given the local market rent of $3,497, this leaves a significant gap of $3,497 - $1420 = $2,077 per month that the landlord must accept instead of the market rate.

This gap underscores the financial reality for landlords in Elm Grove who choose to participate in the Section 8 program. They must be prepared to rent units at a rate far below the market price, which can influence their investment decisions and property management strategies.

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.