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 | $1,050 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,890 | $761,014 | 0.25% | F |
U.S. Census Bureau data (2024)
The ZIP code 53125 stands out due to its unique demographic and economic characteristics. With a population of 1,898 residents, only 13.6% of whom rent their homes, it is predominantly an owner-occupied area. The median income for residents is $112,500, reflecting a relatively affluent community. However, the median home value of $672,135 indicates that homeownership is costly, which could be a significant barrier for many.
Moving into the specifics of Section 8 voucher economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,510. This contrasts sharply with the actual market rent of $1,159, based on Census American Community Survey (ACS) data. The discrepancy between the FMR and the market rent suggests that landlords participating in the Section 8 program in ZIP 53125 could potentially benefit from higher rental rates compared to the local market average.
Given the data signature, ZIP 53125 appears to be stable rather than transitional. The low percentage of renters and high median income point towards a community where most residents can afford market-rate housing. The higher FMR relative to market rent provides a buffer for landlords, ensuring they receive a competitive rate even if market conditions fluctuate slightly.
To summarize, ZIP 53125 offers a favorable environment for landlords considering the Section 8 program, thanks to its stable economic conditions and the potential for receiving rents above the local market average through the program's reimbursement structure.
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.