Location: Milwaukee-Waukesha, WI | Metro: Milwaukee-Waukesha, WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 53127 for Section 8 purposes, follow this decision tree based on the provided data.
1) Does the Fair Market Rent (FMR) of $1360 cover debt service on a property?
No: If the FMR does not cover the debt service, purchasing a property in ZIP 53127 for Section 8 would not be financially viable. Debt service includes mortgage payments, insurance, taxes, and maintenance costs. A landlord must ensure that the rental income will sufficiently cover these expenses.
Yes: Proceed to the next question.
2) How does the market rent compare to the FMR?
Market rent is above FMR: This indicates that the landlord could potentially earn more by renting to non-Section 8 tenants. However, landlords who specifically want to participate in the Section 8 program can still consider properties in this area, but they might face competition from higher market rents.
Market rent equals FMR: The market rent aligns perfectly with the FMR. Landlords participating in the Section 8 program would find it straightforward to set their rental rates according to the guidelines without losing out on potential earnings.
Market rent is below FMR: This suggests that landlords could easily set their rental rates at or slightly below the FMR and still attract tenants. It's an ideal scenario for those looking to join the Section 8 program, as it ensures compliance with the housing assistance payment standards while maintaining a competitive edge.
3) Is there sufficient demand with 100.0% renters and N/A-day days on the market (DOM)?
It depends: With 100.0% of the population being renters, there is clearly a high demand for rental properties. However, the lack of specific DOM data makes it difficult to assess how quickly properties are rented. If DOM is low, it means that properties are rented quickly, indicating strong demand. Conversely, if DOM is high, it suggests slower turnover and potentially less demand. Landlords need to consider both the percentage of renters and the DOM to make an informed decision about the demand in ZIP 53127.
In conclusion, the decision to purchase a property in ZIP 53127 for Section 8 hinges on whether the FMR covers debt service, the comparison between market rent and FMR, and the strength of demand indicated by the percentage of renters and DOM. Landlords must evaluate these factors carefully to ensure financial viability and alignment with their investment goals.
Data Sources: FMR data from HUD (2027). 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.