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 | $980 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $300,468 | 0.42% | F |
| 3BR | $1,710 | $419,076 | 0.41% | F |
| 4BR | $1,960 | $505,597 | 0.39% | F |
| 5BR | $2,274 | $688,953 | 0.33% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 53981 (Twin Lakes, WI) as a real estate market for Section 8 investments hinges on the balance between yield and stability. The yield potential is assessed through the Fair Market Rent (FMR), which for fiscal year 2024 stands at $1390. This FMR figure contrasts sharply with the average market rent of $867, indicating a significant premium for Section 8 properties. However, the median home value in the area is $405,490, suggesting that the initial investment cost is relatively high.
On the stability axis, the ZIP code presents a mixed picture. The rental market is primarily driven by tenants, with 19.4% of the population being renters. This percentage implies a moderate reliance on rental income, but it also indicates that there is a substantial portion of homeownership, which can affect the demand for rental units. The lack of data on days on market (DOM) suggests either limited turnover or insufficient data to draw conclusions about the speed of property leasing. The median household income in the area is $97,804, which is above the national average, pointing towards a stable economic environment that supports the ability of residents to pay rent consistently.
Given these metrics, ZIP 53981 is best classified as a steady-cashflow zone. The high FMR compared to the market rent suggests a strong potential for cash flow when utilizing Section 8 vouchers. However, the relatively low percentage of renters and the absence of DOM data indicate a less volatile market compared to high-yield/low-stability areas. The higher median home value also means that landlords will need to consider the upfront costs of purchasing properties, but the overall economic stability and the guaranteed income from Section 8 vouchers make this a reliable investment option.
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.