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 | $930 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $252,943 | 0.48% | F |
| 3BR | $1,490 | $314,728 | 0.47% | F |
| 4BR | $1,610 | $333,324 | 0.48% | F |
U.S. Census Bureau data (2024)
ZIP code 53172 is situated in the city of South Milwaukee, Wisconsin. This area is characterized by a moderate-sized population of 20,442 residents, with nearly one-third (33.2%) of the population being renters. The median household income in this neighborhood stands at $73,427, reflecting a middle-class community where homeownership is relatively accessible, given the median home value of $300,400.
The economic landscape of ZIP 53172 is further defined by rental dynamics. According to the Fair Market Rent (FMR) data for fiscal year 2024, the benchmark set by the U.S. Department of Housing and Urban Development for Section 8 properties in this ZIP code is $1,120 per month. In contrast, the market rent as measured by Zillow's ZORI index is $1,216 per month, indicating a slight premium for market-rate rentals over those supported by Section 8 vouchers.
This scenario suggests that ZIP 53172 could be a suitable location for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability provided by Section 8 vouchers, which guarantee a steady stream of rental income at a fixed rate of $1,120, makes it an attractive option. These investors can benefit from a reliable tenant base and predictable cash flow without needing to actively manage property values or market conditions.
On the other hand, hands-on value-add buyers might find opportunities to improve upon existing properties and potentially command higher rents closer to the market rate of $1,216. This strategy would involve a deeper understanding of local market trends and a willingness to invest in property enhancements to attract tenants willing to pay above the voucher rate.
In summary, ZIP 53172 presents a balanced environment for Section 8 investment, offering stability for passive investors and growth potential for active ones. The mix of a middle-class demographic and a modest gap between FMR and market rents supports both hands-off and hands-on investment strategies.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.