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 | $1,100 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $341,245 | 0.41% | F |
| 3BR | $1,740 | $485,807 | 0.36% | F |
| 4BR | $1,870 | $607,381 | 0.31% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 53150 in Muskego, WI, hinges on the balance between yield and stability. With a Fair Market Rent (FMR) of $1,350 for Fiscal Year 2024, compared to the local market rent of $1,253, the area shows potential for above-market rental yields. However, the median home value of $514,581 suggests that property acquisition costs are relatively high, which can impact overall profitability.
On the stability axis, the ZIP code presents a mixed picture. The percentage of renters is 15.8%, indicating a modest demand for rental properties. The lack of data on days on market (DOM) implies that there is either insufficient data or the market is stable enough that rapid turnover isn't a concern. The median household income of $109,276 suggests that tenants have a higher capacity to pay rent, which could contribute to lower vacancy rates and more consistent cash flow.
Given these factors, ZIP 53150 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The above-market FMR supports higher yields, but the significant median home value and moderate rental demand suggest that quick flips might be less feasible. Additionally, the higher median income points towards greater financial stability among residents, which is beneficial for long-term investments.
To summarize, the key figures driving this assessment are:
Investors should focus on properties that offer a blend of decent rental income and potential appreciation, given the area's characteristics. This approach aligns well with the steady-cashflow strategy, leveraging the higher income levels and modest yield advantage without the risks associated with flipping in a low-renter environment.
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.