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 | $1,190 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,280 | $184,121 | 0.7% | D |
| 2BR | $1,520 | $305,240 | 0.5% | F |
| 3BR | $1,870 | $401,970 | 0.47% | F |
| 4BR | $2,000 | $500,034 | 0.4% | F |
| 5BR | $2,320 | $534,973 | 0.43% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 53188, Waukesha, WI, stands at $92,409. This figure is crucial when evaluating the affordability of the market rate rent, which is currently set at $1,551 per month (ZORI).
To determine if a household can afford the market rate, we must consider that the federal guidelines suggest that housing costs should not exceed 30% of a household's income. At $92,409 annually, a household would have a monthly income of approximately $7,700. Thirty percent of this amount is $2,310, which means a household could afford rent up to $2,310 without financial strain.
However, the market rate of $1,551 is still significantly higher than the Fair Market Rent (FMR) for Section 8 vouchers, which is $1,340 for the fiscal year 2024. This indicates that while market rate rent is affordable for the average household, it exceeds the subsidy limit by $211 per month.
In ZIP 53188, where 32.9% of the 34,892 residents are renters, the affordability gap between market rate and voucher payments is a significant factor. The disparity means that landlords might face competition from properties willing to accept lower rents covered by vouchers, especially if they aim to attract tenants who rely on such assistance.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: while cash-paying tenants can cover the full market rate of $1,551, those relying on vouchers will only pay up to $1,340. Landlords must weigh the benefits of guaranteed rental payments from voucher holders against the potential for higher income from cash-paying tenants. Given the sizeable gap, landlords might find themselves in a position where accepting vouchers is necessary to remain competitive, particularly in a market with a substantial number of renters.
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.