Location: Racine-Mount Pleasant, WI | Metro: Kenosha, 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 | $1,130 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,400 |
| 5 Bedrooms | $2,784 |
| 6 Bedrooms | $3,118 |
| 7 Bedrooms | $3,367 |
| 8 Bedrooms | $3,535 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,000 | $457,080 | 0.44% | F |
U.S. Census Bureau data (2024)
Skeptical investors considering real estate investments in ZIP code 53139 often have several valid concerns that need addressing with concrete data. One common objection is whether the Fair Market Rent (FMR) of $1,390 for the fiscal year 2024 will sufficiently cover the mortgage on a median-priced home valued at $372,161. To evaluate this, we must consider the typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $372,161 property would be approximately $1,990. This means that the FMR of $1,390 would not fully cover the mortgage payment, leaving a shortfall of around $600 per month. However, it's important to note that this calculation does not account for potential tax benefits or other financial incentives that might reduce the effective cost of the mortgage.
Another concern is the level of renter demand in ZIP 53139, which stands at 10.4%. While this percentage seems low, it is crucial to understand what this figure represents. The 10.4% indicates the share of the population renting versus owning. To put this into perspective, a lower rental rate could suggest higher owner-occupancy, which typically correlates with stable property values. Moreover, the rental market can still be viable if the number of renters matches the available rental units. A detailed analysis of the local rental market dynamics would provide a clearer picture of demand.
The third objection revolves around the sustainability of housing vouchers in light of market rents averaging $1,150. According to HUD guidelines, the maximum voucher amount is set at 40% of the FMR. For ZIP 53139, this would translate to a maximum voucher of $556. Given that market rents are $1,150, vouchers alone would not cover the full rent. However, tenants using vouchers often contribute the difference themselves, making the total rent more competitive. It's also worth noting that voucher programs are subject to federal funding levels and local administration, which can impact their availability and adequacy over time.
In conclusion, while the data presents some challenges, such as the FMR not fully covering mortgage payments and the modest rental demand percentage, it also offers insights into the potential for stable property values and competitive rental markets when supplemented by tenant contributions. Vouchers, though falling short of covering full market rents, remain a significant factor in the affordability of housing. Landlords and small-portfolio investors should carefully weigh these factors against their investment goals and risk tolerance.
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.