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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $80,471 | 1.5% | A+ |
| 3BR | $1,490 | $90,277 | 1.65% | A+ |
| 4BR | $1,610 | $95,635 | 1.68% | A+ |
| 5BR | $1,868 | $97,845 | 1.91% | A+ |
U.S. Census Bureau data (2024)
The classification of ZIP 53206 in Milwaukee, WI, reveals a unique balance between yield and stability that is appealing to both high-risk and steady-cashflow investors. The Fair Market Rent (FMR) for a unit priced at $1000 is projected to be higher than the market rent of $973 for the fiscal year 2024, indicating a potential for higher yields. This discrepancy suggests that landlords can charge slightly above the market rate without significant risk of vacancy, given the robust demand for rental properties in the area.
With a median home value of $90,178, the cost of acquiring property in this ZIP code is relatively low compared to the rental rates, further enhancing the yield. However, the stability of the market is also noteworthy, with 67.8% of residents being renters. This high percentage of renters indicates a strong and consistent demand for rental housing, which supports steady cash flow.
The average income level of $29,336 presents a mixed picture for stability. While it suggests that tenants might have limited financial flexibility, it also points to an established demographic that relies heavily on rental housing. The lack of data on days on market (DOM) makes it challenging to assess the speed at which properties can be rented out, but the high percentage of renters implies a competitive market where vacancies are likely short-lived.
In conclusion, ZIP 53206 leans towards a steady-cashflow zone due to the high percentage of renters and the consistency in rental demand. However, the potential for slightly higher-than-market rental rates and the relatively low cost of property acquisition make it a viable option for investors seeking a balance between yield and stability. Landlords should expect to manage properties effectively to maintain occupancy levels, leveraging the FMR to their advantage while remaining sensitive to the local income levels.
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.