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 | $1,100 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $250,535 | 0.55% | F |
| 3BR | $1,890 | $352,953 | 0.54% | F |
| 4BR | $2,150 | $463,607 | 0.46% | F |
| 5BR | $2,494 | $493,493 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 53144, located in Somers, Wisconsin, centers around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1390, while the market rent, measured by ZORI, is $1987. This creates a gap of $597 per month, representing approximately 43% of the FMR. Landlords and small-portfolio investors must consider this gap carefully when evaluating the potential returns and risks associated with accepting Section 8 vouchers.
In the context of Somers, where 44.4% of residents are renters, and the median home value is $319,742, the lower FMR compared to the market rent suggests that landlords might be undercharging for their properties if they accept Section 8 tenants. The median income in the area is $76,507, which further highlights the economic landscape landlords are operating in. Accepting voucher tenants means renting out units below the open-market rates, potentially impacting cash flow and investment yields.
The cost of housing voucher tenants below open-market rates can be analyzed through several lenses. Firstly, the lower rent could attract more stable tenants who are less likely to default on payments due to the government's role in subsidizing the difference between the FMR and the tenant's contribution. Secondly, landlords benefit from reduced vacancy rates since Section 8 vouchers often lead to quicker tenancy. However, the downside is the monthly shortfall of $597, which represents a considerable portion of the total rental income.
To summarize, the gap between the FMR and market rent in ZIP 53144 is a critical factor for landlords and small-portfolio investors. While it presents opportunities for stable tenancies and reduced vacancies, it also entails a financial sacrifice of nearly 43% of the market rent, which needs to be weighed against the benefits of accepting Section 8 tenants.
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.