Location: Walworth County, WI | Metro: Walworth County, WI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 53191, centered around Williams Bay, WI, reveals a significant financial opportunity for landlords and small-portfolio investors. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,270, whereas the average market rent based on Census ACS data stands at $900. This creates a gap of $370 per month, representing a 41.1% premium for voucher holders over the standard rental rate.
The disparity between FMR and market rent makes this a compelling yield play for property owners. By accepting Section 8 vouchers, landlords can secure a steady stream of income that exceeds the typical rental rates. This is particularly advantageous given the relatively low percentage of renters in Williams Bay, which is only 19.6%, suggesting that the competition for rental properties might be less intense compared to urban areas.
Moreover, the median home value in Williams Bay is $529,292, indicating a strong residential market where homeownership is prevalent. However, the median income of $75,833 suggests that a portion of the population may struggle to afford housing at market rates, making them ideal candidates for Section 8 assistance.
It's important to note that while the FMR provides a higher rent figure, landlords must adhere to the Housing Quality Standards (HQS) and ensure their properties meet these criteria. Failure to do so could result in the loss of voucher tenants, who are crucial for maintaining the higher rental yields.
In summary, the gap between the FMR and market rent in ZIP 53191 presents a clear opportunity for landlords to increase their rental income by participating in the Section 8 program. This strategy is especially effective in a community like Williams Bay, where the median income is lower than the median home value, creating a need for affordable housing solutions.
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.