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 | $1,340 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,720 | $363,057 | 0.47% | F |
| 3BR | $2,110 | $548,602 | 0.38% | F |
| 4BR | $2,270 | $774,956 | 0.29% | F |
| 5BR | $2,633 | $1,118,150 | 0.24% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Fox Point, WI (ZIP 53217) might raise several valid concerns regarding the feasibility of investing in rental properties here. Let's address these objections head-on using the available data.
Objection 1: Will Fair Market Rent (FMR) of $1650 (for zip FY 2024) cover the mortgage on a $562,325 home?
The Fair Market Rent (FMR) for ZIP 53217 is set at $1650 for fiscal year 2024. To determine if this will cover the mortgage on a home priced at $562,325, we need to calculate the potential monthly mortgage payment. Assuming a 30-year fixed-rate mortgage with an average interest rate of 5%, the monthly mortgage payment would be approximately $2900. This amount exceeds the FMR by over $1200 per month. Therefore, relying solely on FMR to cover mortgage payments would not be sufficient. Landlords should consider additional sources of income or other financial strategies to bridge this gap.
Objection 2: Is there enough renter demand at 23.9%?
The percentage of households that rent in ZIP 53217 stands at 23.9%. While this indicates a moderate level of demand, it is important to note that this figure alone does not provide a complete picture of the rental market's health. Other factors such as vacancy rates, median household income, and employment trends would also influence the attractiveness of the area for renters. With only 23.9% of households renting, competition among landlords could be fierce, potentially driving down rental prices or increasing the time needed to find tenants. However, the presence of a stable population and local economy could still support a viable rental market.
Objection 3: Will vouchers keep pace with $1,832 market rents?
The average market rent in ZIP 53217 is $1,832. The question of whether housing vouchers will keep up with these market rents depends on the specifics of the voucher program and how frequently the voucher amounts are adjusted. According to the latest data, the Housing Choice Voucher program has a maximum payment standard of $1,171 for a one-bedroom unit and $1,344 for a two-bedroom unit in this area. These figures are significantly lower than the market rents, indicating that voucher holders may struggle to afford market-rate units. Landlords should be prepared to either accept lower rents from voucher holders or seek out tenants who can pay the full market price without assistance.
In conclusion, while ZIP 53217 presents some challenges for real estate investors, particularly around covering mortgage costs and renter demand, understanding the local market dynamics and having a well-planned strategy can mitigate these risks. It is crucial to continuously monitor the local economic conditions and housing policies to make informed investment decisions.
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.