Location: Kenosha, 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 | $1,220 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,100 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,550 | $260,036 | 0.6% | F |
| 3BR | $2,100 | $373,853 | 0.56% | F |
| 4BR | $2,400 | $515,063 | 0.47% | F |
| 5BR | $2,784 | $616,860 | 0.45% | F |
U.S. Census Bureau data (2024)
The renter's perspective in Salem, Wisconsin (ZIP 53168) reveals a significant challenge in affording the local market rate. The median household income stands at $97,035, which means that even at the market rate of $1,303 per month, renters are spending a considerable portion of their earnings on housing. To put this into context, the typical guideline is that no more than 30% of a household's income should be allocated towards rent. At $1,303, this equates to nearly 16% of the median income being spent on rent alone, which is already a substantial expenditure.
Comparatively, the Fair Market Rent (FMR) set by HUD for Salem, WI, is $1,560, which is higher than the market rate. This discrepancy highlights that the government's assessment of affordable rent is slightly above what the market currently dictates. However, it also implies that renters might struggle more when trying to secure housing that qualifies for a voucher, as they would need to find units priced at or below the FMR threshold.
With only 19.7% of the 9,036 residents identifying as renters, the competition among landlords is relatively low. This low percentage of renters suggests that there is less demand for rental properties, potentially leading to a situation where landlords must offer competitive pricing or amenities to attract tenants.
The affordability gap has direct implications for landlords considering whether to accept Housing Choice Vouchers or to rely solely on cash-paying tenants. Accepting vouchers can provide a steady stream of tenants who might otherwise struggle to find suitable housing. However, voucher payments are typically lower than market rates, which could affect profitability. On the other hand, focusing on cash-paying tenants means landlords can charge closer to the market rate, but they risk having fewer potential renters due to the high cost relative to income levels.
Takeaway: Landlords in Salem, WI, must weigh the benefits of accepting vouchers against the financial impact. While vouchers ensure occupancy, they come with lower payment rates compared to the market. For those aiming for higher returns, targeting cash-paying tenants might be more profitable, but it requires a keen understanding of the local rental market and possibly offering incentives to attract renters willing to pay the market rate of $1,303 per month.
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.