Location: Kenosha, WI | Metro: Kenosha, WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,140 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
The analysis for ZIP code 53159 in Unknown, WI, reveals some limitations due to incomplete data, but we can still provide a general overview of the potential Section 8 cap-rate scenario.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 53159 for fiscal year 2024 is set at $1400 per month. To annualize this figure, multiply it by 12 months, resulting in an annual rental income of $16,800. This represents the maximum allowable rent for Section 8 tenants in this area. However, the median home value and the market rent for 2-bedroom apartments are not available, which complicates a direct comparison between market rents and Section 8 rents.
Given that the median home value is not provided, it's challenging to determine the exact gross yield for a property purchased at its median value. Typically, the gross yield is calculated by dividing the annual rental income by the property's purchase price. For instance, if a median-priced home in ZIP 53159 were hypothetically priced at $200,000, the gross yield would be 8.4%, calculated as $16,800 / $200,000 * 100%. But since the median home value is unknown, this calculation is purely illustrative and cannot be applied directly.
The renter density and days on market (DOM) are also not specified, which means we cannot accurately gauge the competition between landlords and the typical time it takes to lease a property. Without these figures, it's difficult to assess whether the Section 8 rent is more or less competitive compared to the overall rental market in ZIP 53159.
In conclusion, while the annualized Section 8 rent for a 2-bedroom unit is $16,800, the lack of specific median home values and market rent data makes it impossible to draw a precise comparison. The gross yield, based on the hypothetical median home value, would be 8.4%, but this figure should be taken with caution due to the absence of actual market data. Landlords and investors must consider these limitations when evaluating the potential returns of properties in ZIP 53159.
Data Sources: FMR data from HUD (2027).
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.