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 | $1,070 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $344,073 | 0.4% | F |
| 3BR | $1,680 | $466,385 | 0.36% | F |
| 4BR | $1,800 | $567,186 | 0.32% | F |
| 5BR | $2,088 | $631,349 | 0.33% | F |
U.S. Census Bureau data (2024)
The real estate market in Waukesha, WI (ZIP 53189) presents a unique opportunity for landlords and small-portfolio investors due to several key indicators. The median home value stands at $498,619, suggesting a stable housing market where property values have remained consistent. This stability is further reinforced by the fact that only 0.1% of listings have been reduced, indicating that sellers are holding firm on their asking prices. While the median days on market (DOM) is listed as N/A, the low percentage of price reductions signals strong pricing power for the immediate future.
Looking ahead, the data implies that landlords can maintain or slightly increase rental rates without significant risk. The Fair Market Rent (FMR) for ZIP 53189 in fiscal year 2024 is set at $1,330, while the current market rent (ZORI) is at $1,700. This discrepancy suggests that there is room for modest rent increases to align with the market rate, especially as FMR typically lags behind actual market conditions. However, it also indicates a potential challenge if market rents were to decline towards the FMR level, affecting occupancy and profitability.
For long-term investors, the setup points to a conservative appreciation thesis. Given the stable median home value and minimal listing price reductions, appreciation is likely to remain steady rather than surge. Long-hold investors should focus on maintaining properties to ensure they keep pace with market expectations and avoid becoming less competitive over time. Rental income growth, driven by market rates, will be the primary source of return on investment, rather than rapid capital appreciation.
In summary, the current indicators point to a robust market where landlords can exercise pricing power both in terms of sale and rental rates. The slight gap between FMR and ZORI provides an opportunity to adjust rents upward, but caution is advised against aggressive hikes. For those planning to hold properties for extended periods, the appreciation outlook is moderate, emphasizing the importance of maintaining property quality and adjusting rents to reflect market conditions.
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.