Section 8 Fair Market Rent (FMR) for ZIP 53209 - 2027

Investment Score for ZIP 53209

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	$93,914	1.08%	B
2BR	$1,210	$126,954	0.95%	C
3BR	$1,490	$165,545	0.9%	C
4BR	$1,610	$180,823	0.89%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 53209 (Milwaukee, WI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 53209 in Milwaukee, WI, is set by HUD for 2026 as follows: - 0BR: $920 - 1BR: $1000 - 2BR: $1200 (29.7% of median income) - 3BR: $1480 - 4BR: $1600 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, it is important to understand how these FMRs compare to actual rents in the area. The Zillow median price for a 2BR unit is $121,429, which suggests that the property values are relatively low compared to other parts of the city. This is further supported by the price-to-FMR ratio of 8.4x, indicating that the cost of buying a home is significantly higher than the rental rates. Given the FMRs, voucher holders face significant constraints in finding suitable housing. For instance, a 2BR unit at the FMR of $1200 would only account for 29.7% of the median household income of $48,486. This means that the majority of voucher holders must find units that do not exceed $1200 per month for a 2BR, which could be challenging given the high occupancy rate of 88.9%. The demand for affordable housing is likely very high, making it difficult for voucher holders to secure units within their budget. #### Affordability & Renter Profile ZIP code 53209 has a population of 45,170, with 56.2% of residents being renters. This indicates a strong rental market with a significant portion of the population relying on rental properties. Given the median household income of $48,486, many residents may struggle to afford market-rate rents, especially for larger units. The high occupancy rate of 88.9% suggests that there is little vacancy, making the market tight for both tenants and landlords. Voucher holders are particularly important in this market due to the high percentage of renters and the limited supply of affordable units. With 56.2% of the population renting, the demand for subsidized housing is likely substantial. However, the challenge lies in the fact that the FMRs are relatively low compared to the median income, meaning that even with vouchers, many residents may still find it difficult to afford decent housing. #### Investor Angle From an investor perspective, the ZIP code 53209 presents a mixed picture. The FMRs provide a guideline for what voucher holders can afford, but the actual rents charged by landlords can vary. The Zillow median price for a 2BR unit at $121,429 suggests that the cost of purchasing a property is relatively low, which could make it attractive for investors looking to enter the market. However, the price-to-FMR ratio of 8.4x indicates that the rental income generated from these properties is much lower than the potential value of the property if sold. This could affect the cash flow positively for investors who are willing to accept lower returns in exchange for a stable tenant base through Section 8 vouchers. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and managing rental properties. These include mortgage payments, property taxes, insurance, maintenance, and utilities. If we assume a conservative estimate of 70% of the FMR going towards these expenses, then a 2BR unit at $1200 would have approximately $840 left for profit after expenses. This would suggest that the investment is marginally positive, but the returns would be modest. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high occupancy rate and the fact that many voucher holders can only afford smaller units, investing in 0BR, 1BR, and 2BR properties could be more profitable. These units are more likely to be occupied by voucher holders, ensuring a steady stream of income. For example, a 1BR unit at $1000 would be well within the budget of most voucher holders. 2. **Consider Property Value**: While the rental income may be modest, the relatively low property values could provide a good opportunity for long-term appreciation. An investor might consider purchasing a 2BR unit for $121,429 and renting it out at the FMR of $1200. Over time, the property value could increase, providing additional equity and potentially higher resale value. 3. **Evaluate Location-Specific Factors**: The dynamics of the rental market can vary significantly within a ZIP code based on location-specific factors such as proximity to public transportation, schools, and amenities. Investors should conduct thorough due diligence on individual properties to ensure they are in areas where voucher holders are more likely to want to live. #### Bottom Line For Section 8-focused investors, ZIP code 53209 offers a moderate opportunity. The high percentage of renters and the availability of vouchers create a stable tenant base, but the relatively low FMRs mean that returns will be modest. Given the tight market and the high occupancy rate, the demand for affordable housing is strong, but the supply is limited. **Recommendation**: **Hold**. The ZIP code offers a stable but modest return on investment. It is a good option for investors who are primarily interested in long-term stability and potential property value appreciation rather than high short-term returns.

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.