Section 8 Fair Market Rent (FMR) for ZIP 53218 - 2027

Investment Score for ZIP 53218

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: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,210	$131,365	0.92%	C
3BR	$1,490	$175,972	0.85%	C
4BR	$1,610	$182,496	0.88%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 53218 (Milwaukee, WI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 53218 in Milwaukee, WI, is set by HUD for 2026 as follows: - 0BR: $890 - 1BR: $970 - 2BR: $1160 - 3BR: $1430 - 4BR: $1550 These figures represent the maximum rent that a Section 8 voucher holder can pay for housing. However, comparing these rates to actual rental prices provides insight into how realistic it is for voucher holders to find suitable housing. For instance, the Zillow median price for a 2BR unit is $124,876, which suggests that the median value of homes in this area is relatively low compared to other urban areas. Despite the lower home values, the price-to-FMR ratio for 2BR units is 9.0x, indicating that the median rental price for a 2BR unit is significantly higher than the FMR. This implies that the actual rents in the area are likely above the FMR levels, making it challenging for voucher holders to find affordable housing. The 30.5% of median income allocated for a 2BR unit suggests that the FMR is set to be affordable for the average household, but the reality is that rents often exceed these limits. #### Affordability & Renter Profile ZIP code 53218 has a population of 41,196, with 57.1% of residents being renters. This high percentage of renters indicates a strong demand for rental properties in the area. The occupancy rate of 92.2% further supports the notion that the rental market is tight, with few vacant units available. Given the median household income of $45,642, many residents are likely to be low-income families who rely on Section 8 vouchers to afford housing. The median income is relatively low, which means that most residents have limited financial resources to cover housing costs. The FMR for a 2BR unit at $1160 represents 30.5% of the median income, suggesting that the FMR is set to be within reach for the average resident. However, the actual rental prices are likely much higher, putting significant pressure on the affordability of housing for low-income residents. #### Investor Angle From an investor perspective, the ZIP code 53218 presents a mixed picture. The high demand for rental properties and the tight occupancy rate suggest that there could be opportunities for rental income. However, the price-to-FMR ratio of 9.0x for 2BR units indicates that the actual rental prices are far above the FMR levels. This means that landlords who want to participate in the Section 8 program must be willing to accept rents that are below the market rate. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental prices versus the FMR. If the actual rental prices are indeed 9.0x the FMR, then landlords would need to charge around $10,440 annually for a 2BR unit to break even, whereas the FMR allows only $1160 per month. Given the high demand and tight market, landlords might struggle to fill units at FMR rates unless they offer competitive amenities or location advantages. The investment grade for this ZIP code would be considered moderate. While the demand for rental properties is high, the challenge lies in finding a balance between market rates and FMR rates. Investors should carefully evaluate their ability to manage properties at FMR rates while maintaining profitability. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio for larger units, investors should focus on smaller units such as 0BR and 1BR apartments. These units have FMRs of $890 and $970 respectively, which are more likely to align with actual rental prices. For example, a 1BR unit rented at $970 per month would be more feasible for voucher holders and potentially easier to manage financially. 2. **Consider Location and Amenities**: To attract tenants willing to pay FMR rates, investors should look for properties in prime locations or those that offer desirable amenities. Properties near public transportation, schools, and shopping centers may command slightly higher rents without exceeding FMR limits too drastically. 3. **Evaluate Property Values**: With the Zillow median price for a 2BR unit at $124,876, investors should consider the potential for appreciation in property values. Although the current rental market is tight, the relatively low median home value suggests that there could be opportunities for long-term capital gains. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 53218 is to **Hold**. The high demand for rental properties and tight market conditions make it a viable option for investment, but the challenge of renting at FMR rates requires careful consideration. Investors should focus on smaller units and strategically located properties to maximize their chances of success. While the current rental prices are above FMR levels, the potential for appreciation in property values and the strong tenant demand make this ZIP code worth keeping an eye on for future opportunities.

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.