Location: Jefferson County, WI | Metro: Milwaukee-Waukesha, WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
U.S. Census Bureau data (2024)
The median income in ZIP code 53178 stands at $99,875, which provides insight into the financial capabilities of the average household. The market rate for rent, according to the Census ACS, is $1,013 per month. This figure represents a significant portion of the median income when considering other living expenses. For context, the Fair Market Rent (FMR) set by the government for this area in fiscal year 2024 is $1,360, which is notably higher than the current market rate.
The disparity between the market rate and the FMR highlights an affordability gap for renters. At 27.2% of the population being renters, there is a notable segment of the community looking for housing options. However, the difference between the actual rent ($1,013) and the voucher payment standard ($1,360) means that households relying on vouchers could face challenges finding suitable units within their budget constraints.
This gap has implications for landlord competition. Landlords who accept Section 8 vouchers will be competing in a different market segment compared to those seeking cash-paying tenants. The cash rent market is likely more competitive due to the lower rates, whereas the voucher market may offer less competition but comes with the administrative requirements of participating in the Section 8 program.
Takeaway: For landlords deciding between voucher and cash-pay strategies, it's crucial to consider the local rental dynamics. Accepting vouchers can provide a steady stream of income at higher rates ($1,360), though it requires navigating the complexities of the housing assistance program. On the other hand, focusing on cash-paying tenants might attract a larger pool of renters willing to pay the current market rate ($1,013), but it could also mean facing steeper competition among property owners. The choice should align with the landlord's goals, whether they prioritize higher guaranteed payments or a broader tenant base.
Data Sources: FMR data from HUD (2027). 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.