Section 8 Fair Market Rent (FMR) for ZIP 53223 - 2027

Location: Milwaukee-Waukesha, WI | Metro: Milwaukee-Waukesha, WI MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$980
1 Bedroom	$1,060
2 Bedrooms	$1,260
3 Bedrooms	$1,550
4 Bedrooms	$1,660
5 Bedrooms	$1,926
6 Bedrooms	$2,157
7 Bedrooms	$2,330
8 Bedrooms	$2,447

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

28,793

Median Household Income

$60,839

Housing Units

13,089

Renter Percentage

46.6%

Occupancy Rate

91.7%

Renter Occupied

5,599

Housing Authorities Serving ZIP 53223

Housing Authority of the City of Milwaukee (Milwaukee, WI) - 7,653 Section 8 vouchers
Milwaukee Co DHHS - Housing Division (Milwaukee, WI) - 2,172 Section 8 vouchers
CDA of the City of West Allis (West Allis, WI) - 638 Section 8 vouchers
South Milwaukee Housing Auth. (South Milwaukee, WI)

A decision tree for whether to purchase a property in ZIP 53223 (Milwaukee, WI) for Section 8 investment involves three key considerations.

1. Does the Fair Market Rent (FMR) of $1,250 cover the debt service on a property valued at $226,100?

Yes: The FMR of $1,250 per month is sufficient to cover the average debt service for a property costing $226,100. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. At this level, a landlord can expect rental income to meet these obligations comfortably, assuming standard financing terms.
No: The FMR of $1,250 per month does not fully cover the debt service on a property priced at $226,100. Landlords should evaluate their ability to cover the shortfall from other sources or consider properties with lower purchase prices to ensure financial viability.

2. How does the market rent compare to the FMR?

Market Rent Above FMR ($1,566 vs. $1,250): The Zillow Observed Rent Index (ZORI) indicates that the market rent is higher than the FMR. This suggests that landlords could potentially earn more by renting to non-Section 8 tenants, but also means they might face competition and need to offer amenities or improvements to attract Section 8 tenants.
Market Rent Equal to or Below FMR: If the market rent were equal to or below the FMR, it would indicate a more favorable environment for Section 8 investments, as landlords would be less likely to miss out on higher rents and more likely to fill vacancies quickly.

3. Is there sufficient tenant demand?

Yes: With 46.6% of residents being renters, there is significant demand for rental housing in ZIP 53223. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly units are filled. Despite this, the high percentage of renters suggests a robust market for Section 8 properties.
No: If the percentage of renters were significantly lower, it would signal weaker demand. But with 46.6%, landlords should find ample interest from potential tenants. The missing DOM data prevents a full analysis, but it does not detract from the overall positive demand picture.
It Depends: The tenant demand is strong, but the absence of DOM data introduces uncertainty. Landlords must consider other factors, such as the local job market and population trends, to make a fully informed decision about the speed and ease of filling vacancies.

In conclusion, ZIP 53223 presents a viable opportunity for Section 8 investments given the alignment between FMR and debt service, a competitive market rent, and substantial tenant demand. However, landlords should proceed with caution due to the incomplete data on vacancy rates.

Data Sources: FMR data from HUD (2027). 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.