Location: Racine-Mount Pleasant, 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 | $1,160 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $230,704 | 0.69% | D |
| 3BR | $2,040 | $332,799 | 0.61% | D |
| 4BR | $2,460 | $414,974 | 0.59% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 53177, located in Sturtevant, WI, within Racine County, hinge on understanding the specific financial parameters at play. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1240 for fiscal year 2024. This figure is crucial because it is the maximum amount that the housing authority will pay towards rent for this specific ZIP code.
The local market rent for a two-bedroom unit, according to Census ACS data, is slightly higher at $1,257. This indicates that landlords in ZIP 53177 can expect the Section 8 program to cover nearly the full market rent, but not quite. It's important to note that the SAFMR applies specifically to this ZIP code, meaning that landlords cannot expect the same rate if they manage properties outside of this area.
A landlord participating in Section 8 should understand that the reimbursement process involves more than just the SAFMR. The voucher system also includes a tenant portion and utility allowances. The tenant portion is typically 30% of their income, which must be verified by the housing authority. If a tenant's income is $2,000 per month, for example, they would contribute $600 toward rent ($2,000 x 0.30).
The utility allowance varies based on the region and the type of dwelling. In ZIP 53177, the utility allowance is calculated to ensure that tenants do not spend more than 15% of their income on utilities. Assuming an average utility allowance of $200 for a two-bedroom apartment, the total reimbursement a landlord might receive would be the sum of the SAFMR and the utility allowance, minus the tenant's contribution.
In this scenario, the total reimbursement would be $1,440 ($1,240 + $200). After subtracting the tenant's contribution of $600, the net reimbursement to the landlord would be $840. However, since the market rent is $1,257, the landlord would still need to make up the difference between the reimbursement and the market rent. This leaves a reimbursement gap of $417 ($1,257 - $840).
To summarize, landlords in ZIP 53177 who accept Section 8 vouchers can expect a reimbursement that covers a significant portion of the local market rent, but there will likely be a shortfall. Specifically, for a two-bedroom apartment, the reimbursement gap is $417, reflecting the difference between the local market rent and the combined SAFMR plus utility allowance minus the tenant's contribution.
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.