Section 8 Fair Market Rent (FMR) for ZIP 53204 - 2027

Location: Milwaukee-Waukesha, WI | Metro: Milwaukee-Waukesha, WI MSA

Investment Score for ZIP 53204

Monthly Rent (2BR)

$1,210

Median Price (2BR)

$140,219

1% Rule

0.86%

Annual Yield

10.36%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$930
1 Bedroom	$1,010
2 Bedrooms	$1,210
3 Bedrooms	$1,490
4 Bedrooms	$1,610
5 Bedrooms	$1,868
6 Bedrooms	$2,092
7 Bedrooms	$2,259
8 Bedrooms	$2,372

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,010	$289,963	0.35%	F
2BR	$1,210	$140,219	0.86%	C
3BR	$1,490	$156,175	0.95%	C
4BR	$1,610	$172,610	0.93%	C
5BR	$1,868	$187,369	1%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

39,996

Median Household Income

$45,934

Housing Units

15,138

Renter Percentage

73.8%

Occupancy Rate

92.2%

Renter Occupied

10,306

The ZIP code 53204, located in Milwaukee, WI, presents a unique blend of urban living and affordability, making it an attractive investment opportunity for landlords and small-portfolio investors. The area benefits from a diverse population and is close to various amenities, including public transportation and local services.

Fair Market Rent (FMR): The FMR for ZIP 53204 in fiscal year 2024 is set at $990, indicating the maximum rental amount that is considered reasonable for a two-bedroom apartment under the Section 8 program.
Market Rent: According to Zillow's ZORI index, the average market rent for a similar unit in this area is $1,410, which is significantly higher than the FMR, suggesting strong demand from non-subsidized tenants.
Median Home Value: The median home value in ZIP 53204 stands at $160,768, reflecting the overall affordability of the neighborhood compared to other parts of Milwaukee.
Renter Share: With a renter share of 73.8%, the majority of residents prefer renting over owning, providing a consistent tenant pool for landlords.
Days on Market (DOM): The data for days on market is currently not available, but this metric is crucial for understanding how quickly properties can be rented out.
Median Income: The median household income in the area is $45,934, which aligns well with the FMR threshold, ensuring that there is a sufficient number of eligible Section 8 tenants.

Investors looking to capitalize on the rental market in ZIP 53204 should consider the gap between the Fair Market Rent and the actual market rents. This discrepancy suggests potential for higher returns if the property qualifies for non-subsidized tenants. Additionally, the high renter share and affordable median home values indicate a stable and growing rental market. However, the lack of days on market data means investors must rely on other indicators of market health and tenant demand to gauge the speed of property turnover.

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.