Location: Racine-Mount Pleasant, 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 | $1,050 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,450 | $358,762 | 0.4% | F |
| 3BR | $1,850 | $470,996 | 0.39% | F |
| 4BR | $2,240 | $567,958 | 0.39% | F |
U.S. Census Bureau data (2024)
The ZIP code 53185, located in Waterford, WI, presents a unique opportunity for real-estate investors, particularly those interested in Section 8 properties. With a Fair Market Rent (FMR) set at $1,280 for fiscal year 2024, this figure stands notably below the local market rent of $1,754. This difference suggests a potential for higher yields when compared to market-rate rentals. However, the median home value of $442,571 indicates a relatively affluent area where property values are significantly higher.
On the axis of yield, the disparity between the FMR and the market rent implies that landlords could potentially generate substantial cash flow from Section 8 tenants while still maintaining a property value that can appreciate over time. The $1,280 FMR is a fixed amount that can be relied upon for rental income, making it a predictable source of revenue for investors.
Regarding stability, the ZIP code has a relatively low percentage of renters at 17.1%. This suggests that the majority of residents are homeowners, which can lead to a more stable neighborhood environment. However, the lack of data on the average days on market (DOM) for rental listings indicates a possible difficulty in finding timely information on how quickly rental units are being filled. Additionally, the average household income of $103,225 is quite robust, indicating that there is a strong economic base supporting the local real estate market.
Based on these figures, ZIP 53185 does not fall into the category of a high-yield/low-stability flip-style market. Instead, it leans towards a steady-cashflow zone, especially considering the predictability of the FMR and the strong household income levels. While the yield is attractive due to the gap between FMR and market rents, the stability provided by a higher homeowner population and solid incomes supports long-term investment strategies over quick flips.
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.