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 | $1,120 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $321,244 | 0.45% | F |
| 3BR | $1,760 | $429,513 | 0.41% | F |
| 4BR | $1,880 | $493,746 | 0.38% | F |
| 5BR | $2,181 | $563,654 | 0.39% | F |
U.S. Census Bureau data (2024)
The economics of participating in the Section 8 program in ZIP 53213, which encompasses Wauwatosa, WI, in Milwaukee County, hinges on understanding the balance between the Subsidy Allocation Fair Market Rent (SAFMR) and the local market rent. For a two-bedroom apartment in this ZIP code, the SAFMR for FY 2024 is set at $1270. This figure represents the maximum amount that the Housing Choice Voucher Program will pay toward the rent subsidy for this specific ZIP code.
In contrast, the local market rent for a two-bedroom unit in ZIP 53213, as indicated by Zillow's Observed Rental Index (ZORI), is $1,688. This is the average rent price that landlords can expect to charge tenants without vouchers in the current market.
When a landlord accepts a Section 8 voucher, the payment structure involves both the government subsidy and the tenant's contribution. The tenant is responsible for paying 30% of their adjusted income toward rent, plus any applicable utility allowances. For instance, if a tenant's adjusted income is $1,500 per month, they would contribute $450 towards rent ($1,500 * 0.30).
The remaining amount is covered by the government subsidy, which cannot exceed the SAFMR. In ZIP 53213, the landlord will receive the difference between the tenant's contribution and the SAFMR. If the tenant contributes $450, the government will cover the rest up to $1270. Therefore, the total reimbursement to the landlord for a two-bedroom unit would be $450 (tenant) + $1270 (government) = $1720.
However, it's important to note that the government subsidy does not automatically cover the entire rent; it is capped at the SAFMR. Thus, if the market rent is higher than the SAFMR, the landlord must decide whether to accept the lower subsidy amount or to adjust the rent to match the SAFMR.
To summarize, for a two-bedroom apartment in ZIP 53213, the typical reimbursement gap or surplus can be calculated. With a market rent of $1,688 and an SAFMR of $1270, the landlord might face a shortfall if they set their rent at the market rate. In this case, the landlord would only receive $1720 in total reimbursement, resulting in a surplus of $32 over the market rent. However, if the landlord sets the rent at the SAFMR level, there would be no surplus or gap, ensuring a steady and predictable income.
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.