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 | $1,020 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $253,408 | 0.52% | F |
| 3BR | $1,610 | $305,682 | 0.53% | F |
| 4BR | $1,730 | $336,813 | 0.51% | F |
U.S. Census Bureau data (2024)
1180 is the Fair Market Rent (FMR) for ZIP 53227, West Allis, WI, for fiscal year 2024, indicating the maximum rental assistance payment standard set by HUD. In contrast, the Zillow Observed Rental Index (ZORI) stands at 1230, suggesting that market rents slightly exceed the FMR, which could pose challenges for tenants relying solely on Section 8 vouchers. The median home value in this area is 288353, offering a solid investment base for property owners looking to capitalize on the local real estate market. With 49.9 percent of residents being renters, there's a significant demand for affordable housing options, making West Allis an attractive location for those interested in rental properties. The median income of 73321 reflects the financial capacity of the local population, which is important for understanding the potential tenant pool. Notably, the day DOM (Days on Market) figure is N/A, implying that property listings are typically sold quickly without extensive periods of exposure. Furthermore, the price-cut share of 0.1 percent indicates a highly competitive market where sellers rarely need to reduce their asking prices to attract buyers. For landlords and small-portfolio investors considering Section 8 participation, the gap between the FMR and market rents, coupled with the high renter share, suggests a viable opportunity to serve a substantial portion of the local market while maintaining profitability. However, careful consideration of the income levels and competition in the area is essential. In conclusion, the data points towards a balanced market where Section 8 can be a valuable addition to a landlord's portfolio, provided they manage expectations regarding rental income.
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.