Location: Racine-Mount Pleasant, WI | Metro: Milwaukee-Waukesha, WI MSA
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 | $980 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,740 | $438,881 | 0.4% | F |
| 4BR | $2,100 | $547,400 | 0.38% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 53126 within the Racine-Mount Pleasant, WI MSA metro does not work favorably for landlords. The Fair Market Rent (FMR) set at $1090 for fiscal year 2024 is significantly lower than the market rent reported at $1,229 according to the Census ACS data. This discrepancy means that landlords receiving Section 8 subsidies will have to accept a rent rate that is nearly $140 less than what the market demands.
Acquisition in this area is moderately affordable. With a median home value of $459,532, purchasing a property is within reach for many investors, though it's important to note that the data lacks specifics on days on market (DOM) and the percentage of homes needing price cuts to sell. These missing details could be crucial for understanding the speed and ease of property acquisition.
Tenant demand in ZIP 53126 is relatively stable. The area has a total population of 7,064, with 14.0% of residents being renters. This indicates a consistent base of potential tenants, although the number is not exceptionally high. Landlords can expect a steady flow of applicants, but competition among rental properties might be moderate due to the lower renter share.
Verdict: ZIP code 53126 presents a challenging environment for landlords due to the unfavorable rent math associated with Section 8 subsidies. Despite the moderate affordability for acquiring properties, the lower FMR compared to market rent will impact profitability. However, the stable tenant demand offers a reliable occupancy rate, which can be beneficial for long-term investment strategies. For small-portfolio investors, this ZIP code may not be ideal unless they are willing to accept lower returns or seek non-Section 8 tenants willing to pay the market rate.
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.