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 of the Section 8 program in ZIP code 53171 focuses on the discrepancy between the Fair Market Rent (FMR) and the actual market rents. For fiscal year 2024, the FMR is set at $1400. However, the market rent data is currently unavailable, which makes it challenging to provide a precise percentage gap. Nonetheless, we can still discuss the implications of this gap.
In the absence of specific market rent figures, let's assume that the FMR is higher than the typical market rent. This scenario would make properties in ZIP 53171 attractive for landlords participating in the Section 8 program because they can secure rental incomes close to the FMR, which is typically above the open-market rates. Consequently, voucher tenants would enhance the yield for landlords, offering a stable and government-backed source of income.
If the FMR were lower than the market rent, landlords would need to consider the financial impact of renting their properties at reduced rates. The cost of housing voucher tenants below open-market rates could result in a lower net operating income, potentially affecting the overall profitability and cash flow of the investment property. In such a case, landlords must weigh the benefits of guaranteed tenants against the potential reduction in rental revenue.
To anchor this analysis in the broader context of Unknown, WI, it's important to note that specific percentages of renters, median home values, and median incomes are also currently unavailable. These metrics would provide additional insights into the local rental market dynamics and the economic conditions influencing tenant behavior and landlord decisions.
Despite the lack of complete data, the gap between the FMR and market rents remains a critical factor for landlords and small-portfolio investors considering participation in the Section 8 program. It directly impacts the financial viability of such investments, making it essential to monitor both FMR adjustments and market rent trends closely.
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.