Location: Milwaukee-Waukesha, 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 | $1,330 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,430 | $175,198 | 0.82% | C |
| 2BR | $1,710 | $319,827 | 0.53% | F |
| 3BR | $2,100 | $457,188 | 0.46% | F |
| 4BR | $2,250 | $543,459 | 0.41% | F |
| 5BR | $2,610 | $701,928 | 0.37% | F |
U.S. Census Bureau data (2024)
The ZIP code 53151, located in New Berlin, WI, presents a unique balance between yield and stability that appeals to both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,610, significantly higher than the market rent of $1,443. This indicates a strong potential for rental income above the average market rate, making it a high-yield area.
However, the stability of this market is somewhat tempered by the percentage of renters, which stands at 27.5%. While this figure suggests a moderate level of demand for rental properties, the lack of data on days on market (DOM) and the relatively low median income of $101,176 could imply challenges in maintaining consistent occupancy rates and tenant financial reliability. The median home value of $450,707 further highlights the disparity between housing costs and average income levels, which might affect the ability of residents to afford higher rents.
To classify this market, it leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The primary driver behind this classification is the FMR exceeding the market rent, indicating a good opportunity for rental income. However, the lower income levels and moderate renter percentage suggest that while there is potential for high yields, the market also requires careful management to ensure stability and avoid vacancies. Investors should focus on properties that offer value and affordability to tenants, possibly targeting first-time homeowners or families looking for a stable rental option.
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.